Unfortunately, many entrepreneurs think that the law should be consulted when their business runs into trouble. This is not advisable. It is essential to know about the law as it pertains to business. An expert attorney can guide you on important laws, procedures, and regulations that are essential in the running of any business. Whether you own a corporation, sole proprietorship, or limited liability company, there are a few instances where an understanding of the law is essential.
Licensing and Permit Laws
The government requires businesses to acquire the right licenses and permits in order to operate. In fact, it is illegal to operate a business that has not been licensed. Licenses and permits are responsible for:
- Enabling the business to excise taxes and collections
- Preventing the business from indulging in fraudulent activities
- Ensuring that all products and services offered by the business are safe and acceptable
Zoning Laws
If you are planning to open your business in a certain location, it is important to ensure that any zoning laws are not violated. Consider any restrictions that local government has imposed when it comes to selling items around the city. If you operate your business from home, it is equally important to ensure that no zoning laws are violated.
Surety Bonds
A surety bond essentially serves as a protection or an insurance policy. A surety bond is signed between three parties: the obligee, the guarantor, and the principal. The bond serves as a protection and guarantees that the obligee fulfills his part of a contract. Surety bonds are often used with public works. The contractor will sign a surety bond and if he fails to fulfill his part of the deal, the guarantor will compensate the principal. Understanding the nature of surety bonds is very important when you’re involved in construction. Without a thorough understanding of how these bonds work, you might open yourself to legal problems.
Tax Laws
Business owners should file tax returns depending on their kind of business entity and their respective state. Tax laws include franchise and income tax among other things. Understanding tax laws will also be essential when seeking tax breaks.
Business Specific Rules and Regulations
Some businesses are more heavily regulated than others. For instance, if you are interested in the New Jersey gambling business, establishing an online casino is the next natural step. However, it is important to ensure that the business is compliant with your state’s rules and regulations. Sites like PlayNJ.com not only feature a list of legal gambling sites but New Jersey legal online gambling updates as well. If you’re in the online gambling business or any other type of high-risk business, knowledge of the law is essential.
Business law knowledge is essential for any entrepreneur. If you lack the knowledge yourself, it would be wise to seek legal counsel before you start any business. A good attorney will walk you through the legal process and ensure that all your documentation is in order. This way, you will be able to run your business without fearing legal repercussions.
