Regulations refer to rules and standards set by governments or authorities that dictate how companies must operate, ensuring they comply with legal and ethical guidelines in areas such as safety, environmental impact, and consumer protection.
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Last Updated: December 15, 2025
8-hour workdays. Personal protective equipment. Workers’ compensation insurance. While these seem like ordinary aspects of a company’s routine, they’re actually the results of government regulations.
Regulations touch almost every part of modern life, but they’re especially prominent in business. The average small business owner will interact with dozens (if not hundreds) of regulations across the lifespan of their business. As a result, it’s crucial to understand what regulations are. This guide will better define regulations, including some common examples that impact businesses daily.
Although most people know what regulations are, the meaning of the word can be difficult to pin down. Merriam-Webster defines “regulations” as “authoritative rule[s] dealing with details or procedures.” In the business world, that definition certainly applies to regulations. Businesses need to follow a vast range of rules, regulations, and procedures to operate legally.
Regulations touch businesses in a lot of ways. Here are some of the most common regulations that impact today’s small businesses.
Tax regulations are the most obvious kind of regulations that business owners face. Localities, states, and the federal government all have tax regulations on businesses. These vary from one business to another. For instance, S corporations don’t need to pay federal income tax, and neither do limited liability companies (more specifically, these entities don’t pay tax at the business level). Instead, their owners or managers pay federal income tax on a personal level. However, C-corporations have federal income tax liability.
Paying taxes and complying with taxes is anything but straightforward. Business owners have to extensively research what taxes their company needs to pay, when to pay those taxes, and how to pay them.
Common types of taxes include:
Despite the complexity and headaches associated with tax regulations, business owners cannot avoid them. Doing so can lead to serious fines, the dissolution of the business, and even criminal penalties. However, tax time can be greatly simplified with the help of a qualified tax professional.
Most businesses have multiple employees, and those business owners will need to pay attention to both federal and state labor regulations. These regulations cover all kinds of employment matters: minimum wage laws, work hour restrictions, workplace hazard regulations, and more. Anti-discrimination laws and anti-retaliation regulations also apply to businesses in the United States. Additional regulations discuss the interactions and rights of labor organizations like unions.
The environment is critical for everyone. So environmental regulations are also important for business owners to understand. State and federal environmental protection regulations intersect with many business activities. However, understanding environmental regulations is especially important for agricultural, mining, and fishing-related businesses.
At first glance, regulations seem like a hassle. They prevent business owners from carrying out some actions while obliging them to do others. And although some business regulations appear obvious, the reasoning behind others may be difficult to grasp at first. That said, regulations have several benefits. For one, they protect businesses and employees. They also ensure the smooth transaction of money and goods by making everyone follow the same rules. Ultimately, they contribute to the overall well-being of society.
Regulations are government rules and procedures a business must follow to legally operate.
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Regulations are an unavoidable part of running a business, but they don’t have to bring business dreams to a screeching halt. ZenBusiness offers a vast array of products and services that help business owners tackle a variety of regulatory needs. Their business formation plans make it easy to navigate the regulations surrounding starting a business. Their Money Pro platform makes it easier to track income and expenses and navigate finances. The business license report streamlines the process of researching and obtaining necessary business licenses. They help business owners navigate the red tape side of business so they can focus on what they love: running their new company.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
Written by ZenBusiness Editorial Team
The ZenBusiness Editorial Team has more than 20 years of combined small business publishing experience and has helped over 850,000 entrepreneurs launch and grow their companies. The team’s writers and business formation experts are dedicated to providing accurate, practical, and trustworthy guidance so business owners can make confident decisions.
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