Government small business requirements

Each state has different regulations about small businesses. There are some federal licensing requirements and regulations your business must comply with in order to stay in business. Here is a guide to help you with your small business.

Business license
Business licenses are used to authorize you to do business in a particular city, county, or state. Depending upon the type of business structure you have, you may need to have a business license (sole proprietorships normally do not need them). There is a small fee you need to pay in order to receive a business license.

You need to contact your state and local offices to find out if you need a business license. Even if you don't need a license in order to operate your business, it is a wise decision to obtain one because without one, you are assuming a great deal of risk. Home-based business owners should check with their state to see if they need a license and how much it is. The state business licenses are generally cheaper than a federal business license. To determine if you need a business license, research the zoning requirements in your county and city. If you do not have a business license and you need one, you could be facing large penalties from your state offices.

Annual Report
Most small business owners are required to complete an annual report. Annual reports are required by publicly traded companies like C Corporations. The annual report provides investors and the federal government with information on how the business is doing. It provides financial information about the current year and the upcoming year. It also talks about some of the changes that will be happening within the year as well as the management and staff members.

Annual reports must include a balance sheet, a report from an auditor, an income statement, and other information that pertains to the day-to-day operation of the company. Annual reports are beneficial for the federal government and for the business because they can use it as a marketing strategy. You can use it for marketing because it commonly printed on nicer paper with nicer pictures and great information about the company. Since it is used to attract investors, you can include the annual report with some of your fundraising campaigns (this works great for Nonprofit corporations).

Unemployment Insurance
Every employer must contribute to unemployment insurance. Unemployment insurance is used to supplement the income for an individual that has lost their job. When employers pay their payroll taxes, a portion of those taxes will go toward the unemployment insurance. If a worker has been terminated and they fit all the requirements, they can file for unemployment insurance. Small business owners cannot collect unemployment insurance if their business fails. However, you may be able to collect partial employment if you are not considered self-employed and you had to scale back your hours.

Labor Laws
Every employer is subject to different labor laws that they must be in compliance with. These laws usually provide information about minimum wage, the number of hours an employee can work, and the employment of minors. Federal labor laws recently changed so it is important for business owners to review them often as their business may be impacted.

Labor laws usually cover information about antidiscrimination along with Workers Compensation. In addition to this, employers must also follow the workplace safety and health regulations set forth by the federal and state government.

With so many federal and state regulations, it is important to do your research to make sure you are in compliance. If you are not, it is important to get in compliance as soon as possible or you can face a large penalty from the federal and state government.