Launching your own business not only comes with its list of potential benefits but also a list of requirements for it to be viable, including compliance regulations — even if you are starting a home-based business. When it comes to small businesses, compliance refers to fulfilling your legal obligations as a business. From registering your business for the correct licenses and permits to adhering to OSHA’s Health and Safety protocols, ensuring your business remains compliant every step of the way is the best assurance to ensuring you remain profitable and successful.
Have You Satisfied Your State’s Compliance Requirements?
Each state will have its own compliance regulations and guidance for businesses operating in-state. While there are some common requirements across all states, it is always advised to check with your state’s business department for individual requirements. Your choice of business structure will also impact your requirements as well. Most states will ask that your business submits an annual report alongside its accompanying filing fee. States like California also require businesses to use LLC or Incorporation at the end of their business name.
Are You Required to Subscribe to Workers’ Compensation?
Currently, Texas is the only state that does not mandate that employers purchase workers’ compensation insurance. The requirement criteria will differ according to state laws, however. If you are operating in Alaska and have 1 or more employees, you are obligated to secure workers’ compensation. Businesses in Georgia with 3 or more full-time, part-time or seasonal workers need to buy workers’ compensation.
Is Your Business Technologically Compliant?
As more of the business process moves online, there is now a heavy emphasis on ensuring that businesses adhere to good practices in storing customer data and its advertorial content. A good place to start is checking that your website is ADA compliant (Americans with Disabilities Act). MirrorWeb, a specialist platform in digital archiving and compliance regulations can help you if you are unfamiliar with where to start. The Federal Security Information Management Act (FSIMA) also stipulates that you implement appropriate information systems to protect yourself from data breaches.
Is Your Business Tax Compliant?
There are also federal guidelines that businesses need to follow as they grow. One of those is securing an Employer Insurance Number (EIN). This will be particularly applicable once you begin hiring employees for your business. Applying for an EIN is easily done online by visiting the IRS’s Internet EIN Application page.
Finally, take a look at the tax regulations you may need to comply with. As an employer, you will need to pay employer and payroll taxes. You may also need to pay Value Added Tax (VAT) if you are registered and corporate taxes. However, be careful since there are 2 parts to paying corporate income taxes: the flat-rate federal corporate tax and your state-imposed corporate income taxes. For instance, the corporate income tax rate in Indiana is 5.25 percent and, in California, it is pegged at 8.84 percent.
The need to follow compliance regulations does not end here, either. In fact, as your business expands, so will your compliance requirements. For instance, as you hire your first employee or expand your workforce, you may find that you are now required by state law to secure workers’ compensation insurance cover. Therefore, it is essential that businesses remain vigilant of their changing compliance regulations as they grow, and in every stage of a continuously changing landscape.
