Doing business goes hand in hand with responsibility and liability. To run your business correctly, you need to know the business law governing the state in which you base your business.
Business Law Differences
Business Law differs from state to state in the US.
Learn what your law mandates regarding your contracts, your transactions and the applicable laws affecting the operations of your business in connection with salaries and wages, employment of workers and relationship towards your government. It is imperative.
Business law relates to other laws regarding some aspects of your business such as tax, bankruptcy and intellectual property rights.
It also governs some transactions between businesses and corporations or between owners and employees.
When doing business, you need to know your liability as the business owner or as a partner in the case of a limited liability company.
More than 13 million – or nearly 60% – of all small businesses
have experienced significant legal events in the past two years
Knowing what rights are enforceable and what provisions of the Uniform Commercial Code are applicable in your state and to each transaction will save you from any inconvenient and costly future litigation if and when a problem arises.
Knowing your obligations and responsibilities under the relevant business law will also save you from government fines. It will help you make sure you pay your taxes or renew your business license on time.
The 7 Major Categories of Government Business Law
Federal Business Laws constitute seven basic categories. Note that each category may not apply directly to your business depending on your specific trade.
1. Tax Code
For most small business owners, government regulation queries nearly always begin with taxes.
However, there’s more to taxes than just paying them. You need to know which business taxes to pay and when to pay them. You need to know how to line up your business to account for future tax payments. This can spare you a lot of headaches when the time comes to write the government a check.
Find out more: “How a tax attorney assists small businesses”
2. Employment and Labor Law
If your business develops and you hire workers or freelance contractors, you will learn more about the vast array of federal and state labor laws.
Thankfully, if you’re just starting out, you’ll exploit the Department of Labor’s FirstStep Employment Law Advisor.
3. Anti-monopoly Laws
Any time a company conspires with its competitors, third-party vendors, or alternative relevant parties, it will breach anti-monopoly – or antitrust – laws.
A good advertising strategy will do wonders for your business.
However, before you dive in, you’ll need to confirm that you’re playing by the rules and adhering to business law.
For example, you’ve got to make sure any claims you make in your ads aren’t mendacious or deliberately deceptive.
5. Environmental laws
You might find yourself becoming familiar with numerous environmental protection laws, depending on your trade or business.
This is particularly pertinent if you’re marketing, say, cleaning products, food, or something which claims to be natural, organic, or eco-friendly.
Businesses with staff and workers end up amassing a lot of sensitive personal data about their workers.
As a result, there are a variety of rules and regulations about how employers should save and secure this information and ensure they follow business law.
7. State Licensing
We’ve focused on federal laws and government regulations on business thus far. However, that doesn’t mean that there aren’t ample state regulations to understand for your small business.
Several state and local governments have their own regulations for businesses. It’s often just as important to get a grasp on them as it is their federal counterparts.