The time has come for you to take the plunge into the business world. Soon, you will become a business owner and be responsible for the growth and well-being of a company. You must prepare yourself for this awesome responsibility with as much research as possible.
Before getting started, it is a good idea to consult with a business attorney or a bankruptcy lawyer to make sure that you know how to protect your personal assets. Staying grounded in such matters will allow you to keep your head on your shoulders and avoid rash risks during this exhilarating time.
Get a Business License
A business license is the legal proof of your right to operate your business. Start this process by making inquiries at the state level. They should be able to provide you with the information you need as well as connect you to the Small Business Administration authorities in your area. Then, collect all the information you can about federal licensing for your type of business. This will make it easier for you to find out which forms you need to fill and when and where to submit them.
Research Employment Laws
This is the best place to start understanding what demands you can make of your future employees. Not knowing their rights could cause you to create a hostile work environment which may result in the authorities shutting down your business. Reputation in business is everything, so make sure that you know which employment laws exist and how to comply with them in spirit as well as by word.
Your employees will be the bedrock on which you build your business. You could achieve sustainability by giving them the bare minimum of their rights. But, by treating your staff with respect you could achieve your business growth goals much sooner than you had projected.
The Most Important Employment Laws
The Fair Labor Standards Act regulates federal minimum wage, overtime rules, and child labor bans. These are regulations you must comply with at every level of your business. The Federal Equal Employment Opportunity laws protect employees from discrimination based on race, religion, gender, and national origin. It includes equal pay for all genders and ensures the rights of an employee with disabilities.
As the employer, you have to guarantee a safe working environment for your employees. This means making sure there are no health hazards in the building, in-services, and that all necessary utilities are provided.
This also means that you must provide your employees with insurance. It can be simply workplace insurance which will compensate them in the event of an injury. It can also extend to liability insurance which will protect them in the event of a suit brought against them by a customer.
One of the most important tasks you will do as a business owner is to make sure that your taxes get filed on time and accurately. For this to happen, you must apply for an employer identification number. This is now very convenient to get online from the IRS website and you will receive it after filling out the proper online forms.
The IRS website also provides a breakdown of all the taxes there are and you can find out which ones you are required to pay towards. This can be confusing for the layman and may be daunting at the beginning as you will not have much revenue. Also, you will be required to pay both federal as well as state taxes. Consult an accountant to help you figure out which ones are mandatory and how to form a budget to stay up-to-date with the payments.