Crucial Business Laws for Small or Single Entrepreneurs
Starting a business is not always easy for an entrepreneur. Still, you can somehow establish your business with training and special skills. But, every business owner needs to know about the relevant laws in the corporate. The U.S. code law is important for small businesses and solo entrepreneurs.
Author:Frazer PughReviewer:Emmanuella SheaFeb 15, 202257.5K Shares975.5K Views
Starting a business is not always easy for an entrepreneur. Still, you can somehow establish your business with training and special skills. But, every business owner needs to know about the relevant laws in the corporate. The U.S. code lawis important for small businesses and solo entrepreneurs.
With some knowledge about governmental policies and business law for entrepreneurs, you can avoid legal complications. Moreover, you can hire business attorneys to learn more about the legal rules.
Why Should You Know The Laws Relating To Entrepreneurship?
- Minimize costs - You can avoid lawsuits and reduce legal costs by resolving the issues.
- Strengthen your business- Your business will gain lawful recognition, and you can make an ethical claim. It will enable you to stay ahead in the competition.
What Are The Most Important Laws Concerning Entrepreneurs?
Privacy Laws
According to Federal Trade Commission, you must maintain your customers’ data privacy. However, both employees and customers have to be careful about their personal details. It is essential to reveal the way how you will use their personal data. The customer’s data includes email addresses, names, and other details.
Businesses accepting credit cards must be PCI-DSS compliant. It is a vital standard to ensure that they store, process, transmit, and accept credit card details in a secure environment. Moreover, businesses dealing with customers’ credit reports and evaluating credit scores must know the Fair Credit Reporting Act.
Advertising Laws
You have to know the legal aspects of both online and offline advertisements. The FTC governs the laws related to advertisements to prevent unfair activities and deception to consumers.
The CAN-SPAM Act sets the legal rules for emails, and they state that recipients have the right to stop receiving emails. The business needs to pay fines for violating the laws.
You should avoid using misleading and false headers in any business-related email. Furthermore, you must add the option for unsubscribing to your emails. The entrepreneurs in the USA also need to abide by the Telephone Consumer Protection laws and Telemarketing Sales rules. For instance, you have to follow the legal rules when you sell your credit repair service by making phone calls.
Content from potential customers and relevant disclosures are also some other considerations. Your message must not mislead and misrepresent customers via any offline and digital channels.
Regarding the testimonials, we need to say that they have to reflect the real customers’ views. Your company has to disclose the connections between the company and the endorser.
Corporate Tax Laws
Tax laws are highly important for both personal and corporate lives. You may also hire tax consultants to avoid hefty charges and audits.
While establishing a business, registration with IRS is one of the major steps. Using your EIN, the IRS will track your business. EIN is essential to get the payroll service, apply for licenses, and open your corporate bank account. You may visit IRS.gov to send your application. The major business taxes are:
- Income taxYou have to file an income tax return every year as a small business owner.
- Employment taxIt is essential to pay FUTA and Social Security, and Medicare tax for employing workers.
- Excise taxThis tax is especially important for manufacturers and some product sellers. Moreover, businesses dealing with equipment, tractors, and trucks must pay for it. Common excise taxes are imposed on tobacco and gasoline.
- Laws on intellectual propertiesIntellectual property refers to intangible property like trademarks, patents, trade secrets, and copyrights. The USPTO governs the intellectual property laws for companies in the USA.
- PatentsInventors can protect their rights with laws related to patents. The patent owners prevent others from selling, making, and using their inventions. From the date of filing the application, your patents will last 20 years.
Patents are of different types, including utility patents and design patents. Learn about the laws to protect your company’s patents.
- TrademarkIt may be a symbol, word, design, phrase, and sound, which identifies your brand and differentiates it from others.
Your trademark rights are protectable, and when someone has violated the laws, you can hire a lawyer.
Employment Laws
Companies that have employed workers must stick to Employment laws. These legal rules cover the responsibilities and rights of both workers and employers. Moreover, there are Federal and state laws related to employment.
- Equal opportunity laws
The FEEOC oversees these employment laws to ensure that employees have equal opportunities for work. You must not make an employment-related decision based on age, color, race, nationality, gender, and disability. Consult a lawyer to solve any question related to equal opportunity laws.
- Fair Labor Standards Act
Currently, the minimum wage that the company needs to pay is $7.25. Some workers are entitled to get overtime payments. But employers do not need to make overtime payments when the employee’s salary is $455 per week.
- Workers’ compensation
It is business insurance providing medical care and monetary benefits for injured workers. Employers have to pay for the insurance. It is essential to adhere to the rules to cover any potential accidents.
- Occupational Safety and Health laws
According to these laws, employers have to make the workplace free from hazards and accidents.
- Family and Medical Leave
Employers who have at least 50 employees are obliged to give job-protected, unpaid leave of 12 weeks.
The reason behind the leave can be child adoption, the birth of a new baby, and serious illness. In some states of the USA, there are additional legal rules regarding job-related leaves. That is why you must know about every detail from your lawyer.
- Americans with Disabilities Act
The legal rules are intended to prevent employers from discriminating against employees with disabilities. Maintain equality while treating every employee in your company.
You can now hire one of the best business lawyers in the USA. He will protect your rights and help you stick to the laws. You can contact a legal firm to engage a legal professional. Your business entity will be safe from legal complications in the future.
Frazer Pugh
Author
Frazer Pugh is a distinguished expert in finance and business, boasting over 6 years of experience. Holding an MBA in Finance from Stanford University, Frazer's credentials underscore his authority and expertise in the field.
With a successful track record in executive roles and as a published author of influential articles on financial strategy, his insights are both deep and practical.
Beyond his professional life, Frazer is an avid traveler and culinary enthusiast, drawing inspiration from diverse cultures and cuisines.
His commitment in delivering trustworthy analysis and actionable advice reflects his dedication to shaping the world of finance and business, making a significant impact through his work.
Emmanuella Shea
Reviewer
Emmanuella Shea is a distinguished finance and economics expert with over a decade of experience. She holds a Master's degree in Finance and Economics from Harvard University, specializing in financial analysis, investment management, and economic forecasting.
Her authoritative insights and trustworthy advice have made her a highly sought-after advisor in the business world.
Outside of her professional life, she enjoys exploring diverse cuisines, reading non-fiction literature, and embarking on invigorating hikes.
Her passion for insightful analysis and reliable guidance is matched by her dedication to continuous learning and personal growth.
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