Learn more about what regulations are in business.
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8-hour workdays. Personal protective equipment. Workers’ compensation insurance. We may not realize it at first, but regulations are a critical part of modern life. They touch everything we do in some form or another. Regulations are especially prominent in the world of business. It doesn’t matter whether you’re in charge of a small business, large business, or some other kind of legal commercial entity. Regulations will impact you directly.
Although most people know what regulations are, the meaning of the word can be difficult to pin down. Merriam-Webster’s definition of “regulations” is “authoritative rule[s] dealing with details or procedures.” For regulations in the business world, that definition certainly applies. Businesses need to follow a vast range of rules, regulations, and procedures to operate legally.
Let’s review some clear examples to illustrate how regulations define every aspect of a business’s operations.
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. Nor do limited liability companies. 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. You need to carry out extensive research on what taxes you need 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, you cannot avoid them. Doing so can lead to serious fines, the dissolution of your business, and even criminal penalties. However, you can make paying taxes much easier with the help of a qualified tax professional.
Most businesses have multiple employees. That means that you need to pay attention to federal and state labor regulations. These cover all kinds of employment matters. A few examples include minimum wage laws, work hour restrictions, and workplace hazard regulations. Anti-discrimination laws and anti-retaliation regulations 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. Yet 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. Finally, they help commercial ventures improve the overall well-being of society.
Regulations are government rules and procedures a business must follow to legally operate.
As you now know, regulations are an unavoidable part of running a business. But they don’t have to run your business dreams into the ground. Our vast array of products and services can help you tackle many kinds of regulatory needs. Need to know which regulations apply to forming a business? We can help you with our Business Formation Services. Want to keep track of your finances for tax and accounting purposes. We can put all your business’s finances at your fingertips with ZenBusiness Money. Need to discover what business permits and licenses apply to your small business? Our partners at Avalara can provide you with a customized licenses and permits report that shows all the licenses and permits that apply to your business based on its location and activities.
Whatever your business’s situation, we can provide you with valuable tools and guidance to stay ahead of regulations.
Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.