Starting up a small business in a competitive economy and a fast moving market is no mean feat. If you’re running it alongside studies or even a full time job, it becomes exponentially more difficult. Navigating the running and maintenance of your business alongside the rigors of day to day life is a challenge that few people can successfully manager. But you’re not just anybody! You’re a dynamic, resourceful and determined entrepreneur and while your competitors may rise, stumble and eventually fall you will outlast them because you have the tenacity, dedication and imagination that they don’t. But even as you navigate the minefields of time management, branding, resource management, ensuring the future security of your business and maintaining a market share that eclipses that of your competitors, it’s vital that you keep asking yourself one important question…
Is my business legal?
Of course the answer will vary depending on your chosen field. Some areas of business are far more litigious and legally demanding than others. If you work in the medical field, for example, there are very specific practices regarding client data to which you are expected to adhere which is why you may benefit from managed compliance services from NAHS. There isn’t a single market or area of business in which compliance is not important. At the very least you’ll have to consider…
Employment laws
Even if you only have one employee who happens to be your best friend, if they draw an income from your business they are still an employee. This means that you are beholden to them in certain legally binding ways. You have wage standards which need to be met, you need to obtain appropriate documentation pertaining to their citizenship and right to work, fill out Department of Labor forms and abide by fair employment practices. In some small businesses, of course, this may not be practical which is why smaller outfits tend to employ friends who help out as independent contractors.
Tax laws
The last thing your nascent business needs is to fall afoul of the IRS. Ensure that your federal and state taxes are filed and don’t forget about self employment tax is you haven’t registered your business as a Private Limited Company.
Advertising laws
If you’re marketing your business online, you must also adhere to specific advertising codes of conduct. Your advertising copy must be truthful and non-deceptive, adhere to copyright laws (i.e. be 100% original) and make appropriate terms and conditions visible and plainly stated in any advertising copy you publish.
Miscellaneous laws
There are so many miscellaneous laws that may pertain to your small business, it’s virtually impossible to list them all here. Nonetheless, some to watch out for include avoiding conflicts of interest in business relationships, ensuring that legal agreements with partners, service providers or investors are fair, legal and well documented, honoring any environmental obligations which may pertain to your operations (e.g. if your business flushes substances into the local water supply), and ensuring that your business has the right insurance cover for your protection and that of customers, clients and employees…
Which is just common sense when you think about it!
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