Compliance Information and Resources: State by State
By Jade Chounlamountry, Esq. | Legally reviewed by Aviana Cooper, Esq. | Last reviewed June 06, 2024
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Starting a small business has its joys and challenges, including understanding and managing compliance. Staying on the right side of the law—from state regulations to local rules—is essential.
This article is an overview of small business compliance. Whether you're new or experienced, knowing compliance requirements can make your journey easier.
Understanding Small Business Compliance
Small business compliance means following rules to keep your business legal. These rules cover paying taxes, managing employees, and environmental standards. But rules can differ from one state to another. So, it's crucial to understand what your specific area requires.
Meet the Small Business Ombudsman
Each state has a small business ombudsman who can help you. They help small businesses work with state agencies and get help with complex regulations. You can find their contact information on your state's official website. Many states and federal agencies offer outreach programs to help small businesses grow. Your business can grow with grants, loans, and support in following the rules.
Dealing With Taxes: IRS and State Taxes
Paying taxes is a big part of small business compliance. You must handle federal taxes (like income tax) and state taxes (like sales tax and franchise tax). The IRS and your state's tax agency have websites with clear guidance and resources to assist you in meeting your tax obligations.
Local Rules Matter
Understanding and adhering to local regulations is crucial for small businesses. Familiarize yourself with zoning laws, signage restrictions, and any specific local permits required. Check for rules regarding operating hours and noise levels. Use local government websites and community resources for accessible information. Stay vigilant for updates or changes in local regulations that may affect your business.
Keep Accurate Records and Seek Help
Keeping good records is vital to show you're following the rules. Small businesses must track transactions, employee details, and important documents. The Small Business Administration (SBA) and others can help you set up good record-keeping for your small business. It's not just paperwork—it's how you prove compliance and gain insights for better decisions.
Stay Informed With Notifications and Explore Exemptions
States often send notifications about rule changes and important dates for taxes and compliance. Pay attention to these to avoid penalties. Some businesses can qualify for exemptions and incentives depending on what they do and where they are. It's wise to check if your business qualifies for these benefits.
Handling Human Resources and Department of Labor Rules
Complying with labor laws is a critical part of small business compliance. The Department of Labor provides information on:
- Minimum wage
- Overtime pay
- Other labor-related regulations
Properly managing your employees is essential to stay compliant and avoid legal issues.
Using State Compliance Apps
Many states and the SBA have developed apps and online resources to make compliance easier. These apps often include frequently asked questions (FAQ), checklists, and real-time updates.
Navigating State Compliance
Navigating state compliance for small businesses involves understanding and following local regulations. Keep track of licensing requirements, tax obligations, and reporting deadlines. Use online resources and government portals for simplified information. Regularly check for updates and regulation changes to stay compliant. Seek help from local business associations or legal professionals if needed. By staying informed and proactive, small businesses can ensure state compliance.
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Compliance Resources By State
Get Compliance Assistance From a Legal Professional
For any new business, following all relevant laws and regulations is crucial. Sometimes, it's necessary to clarify which laws apply. This is especially true when there's an overlap among jurisdictions. Consider speaking with a business and commercial law attorney for help with compliance and peace of mind.
See FindLaw's Business Laws and Regulations section to learn more.
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