7 Ways the Government Regulates a Small Business

funderscorner | Funders Corner

There are plenty of small business regulations done by the federal government. These typically range from labor laws to fair practices among many others. Learning about these can seem like a daunting task but don’t worry we have got you covered to make sure you understand if the business you are running is following these regulations.

You can also go through the database provided by Code of Federal Regulations and also the Laws & Regulations Resources in order to find almost exactly what you need to know. Let’s have a look at these regulations:

Tax

Taxes are not merely meant to be paid, there is so much more to them. A tax code depends on the type of business. You can also go through the business structures list to know what you need to file when you run your business. You must know the following types of taxes:

• Income tax: You pay it when you earn income
• Estimated tax: You pay the total estimated amount that you will earn in a given year
• Employment tax: IRS wants you to pay this tax if your business has any employees
• Excise tax: If you purchase certain goods and that purchase amount is included in product’s price, you have to pay this tax

Labor law and employment

If your small business has independent contractors and employees, you need to understand labor laws (federal and state.). It includes medical leaves, posters, employee security benefit, and many others listed below:

• Wages and hours: Employers has to pay to covered employees who are not exempted from the federal minimum wage and for overtime also
• Safety at the workplace: The workplace must be free from serious hazards
• Equality: No discrimination should be made on the basis of color, race, religion, etc.
• Unions: Employers have to manage relationships with union members
• Worker from outside the US: The employee from outside the US should be authorized to work in the US

Antitrust law

A particular small business’s integrity must not be risked in order to gain customers. The antitrust laws prohibit price discrimination, monopolization, provoking to boycott a competitor, agreeing to allot of customers or market among competitors, and discussing prices with a competitor.

Advertising law

Your business advertisement should not be untruthful or else you will attract a fine. You should be in compliance with labeling laws, study the rules for advertising, marketing, and environmental claims. So, your ads must not be deceptive.

Environment law

The Environmental Protection Agency looks over the environmental regulations. Under these regulations, you should have a permit before your release a pollutant in the environment. Also, you can check your business’ environment compliance by EPA Small Business Getaway.

Privacy rule

Your business should not disclose the sensitive information of its employees during business transactions or at the time of hiring. This includes address, security number, health conditions, name, personal history, or bank numbers.

State licensing law

Apart from the federal government, there are many local and state governments that arbitrate business regulations. Check your compliance with the law by going through the requirements of these governments.

So, we can see the ways in which the federal government regulates the small business. All the above-listed rules and regulations must be followed by each individual or groups of individuals running a small business of their own in order to be in compliance with the law.