Regardless of the type of business you run, it’s extremely important that it complies with the law. Failure to do so can result in large fines and even jail time for the business and its owners. Furthermore, the impact on the businesses image and the public’s perception of your brand can be permanently damaged. The term “ignorance of the law”, applies to all governmental statutes including federal, state, and local authorities. As an entrepreneur, becoming familiar with existing rules and regulations is crucial to your business.
Paying Taxes
It is estimated that over almost 600 people are convicted of tax fraud on an annual basis. Over 60% of these individuals end up receiving prison sentences. While only around 1% of USSC’s defendants are convicted of tax-related crimes, it is still a significant number. In other words, if you avoid paying your taxes, there is a good chance that you will be caught. Considering fines for tax evasion can reach $500,000 or more for a corporation, it is important that you pay your taxes on time.
Some entrepreneurs are not good at math and may worry about miscalculations. As it can be relatively difficult to prove human error over malicious intent, many people choose to use tax preparation software (for example see UltimateTax). If you are familiar with accounting yourself, UltimateTax software can offer you a means to organize and file your taxes effectively. An alternative to using software is to hire or contract a professional accountant. If you have don’t have a clue about how accounts work, or how to file an accurate business return, a professional accountant will set things up for you. They will have plenty of knowledge and experience, freeing up your time to focus on other areas of your business.
Complying with Building and Fire Regulations
If you are operating commercial premises, you will have numerous building and fire regulations to comply with. Make sure that your building is safe, and have it checked by a licensed business service inspector regularly. You should also make sure that your commercial property has clearly labeled with signs for fire exits, smoke detectors, fire extinguishers, fire doors, and even a sprinkler system. Arrange inspections from professionals working within the fire department to confirm that everything is in place and in good working order.
Field Specific Rules and Regulations
There are specific rules and regulations for every business niche. Take the food and dining industry as an example. If you run an establishment that serves food, employees should complete a food hygiene training program. This ensures they know how to correctly store, prepare, handle and serve food in a hygienic and safe manner. In addition, your business must undergo regular inspections. As the owner, you must familiarize yourself with the specific regulations for your business. When in doubt, contact a legal professional for guidance.
There are many things to consider to ensure that your small business complies with the laws. While it may seem daunting at first, you will eventually develop a routine. It’s more than worth the effort, as trying to cut corners could have an extremely negative impact on your business.
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