Government Regulations & Your Business

It may be inconceivable to you that your home-based consulting service or handknit sweater business would have to comply with any of the numerous local, state and federal regulations, but in all likelihood it will. Avoid the temptation to ignore regulatory details. Doing so may avert some red tape in the short term, but could be an obstacle as your business grows. Taking the time to research the applicable regulations is as important as knowing your market.

Below is a checklist of the most common requirements that affect small businesses, but, unfortunately there are always more... Regulations vary by industry. If you work with food, you will have to work with the health department. If you use chemicals, you will have environmental compliance requirements. Carefully investigate the regulations that affect your industry. Being out of compliance could leave you unprotected legally, lead to expensive penalties, and jeopardize your business.

Business Licenses

There are many types of licenses. You need one to operate legally almost everywhere. If the business is located within an incorporated city limits, a license must be obtained from the city; if outside the city limits, then from the county. For more information contact the county or city office in your area.

Certificate of Occupancy

If you are planning on occupying a new or used building for a new business, you may have to apply for a Certificate of Occupancy from a city or county zoning department. For more information contact the county or city office in your area.

Business Organization

There are many forms of legal structure you may choose for your business. The most common structures are Sole Proprietorships, General and Limited Partnerships, C and S Corporations and Limited Liability Companies. Each legal structure offers organizational options which are appropriate for different personal situations and which affect tax and liability issues. We suggest you research each legal structure thoroughly and consult a tax accountant and/or attorney prior to making your decision.

Fictitious Business Name

Businesses that use a name other than the owner's must register the fictitious name with the county as required by the Trade Name Registration Act. [CHECK FOR APPROPRIATE NAME OF THE ACT IN YOUR AREA] This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name.

Protecting Your Idea

If applicable to your business, you may want to apply for trademarks, patents and your copyrights. Information regarding these applications is listed below.

Trademarks

Trademarks are names or symbols used in any commerce that is subject to regulation by state government or the U.S. Congress.

State Registration of a Trademark

Trademarks and service marks may be registered in a state for a term of ten years. For more information about Applications for Registration of Trademark or Service Mark in [YOUR STATE] contact:
www.sba.gov/world/states.html

Federal Registration of Trademark and Patent

To register a trademark contact:

U.S. Department of Commerce

Trademark Office

2021 Jefferson Davis Highway

Arlington, Virginia 22202

(703) 305 8341 or (800) 786 9199

To register a patent, contact:

Asst. Commissioner for Trademarks, Patent Applications

Washington, D.C. 20231 (800) 786 9199

Also, visit their web site at http://www.uspto.gov

Caution: Federally registered trademarks may conflict with and supersede state registered business and product names. Businesses are encouraged to check for conflicts with federal trademarks.

Patents

Contact:

Superintendent of Documents

P.O. Box 371954

Pittsburgh, Pennsylvania 15250 7954

(412) 512 1800

New and useful inventions can be protected by a U.S. patent. Professional assistance from a patent attorney is strongly urged because patent procedures are detailed and technical. A patent search is performed to see if a patent currently exists on the same or nearly the same device and, if not, to make proper application with the Patent Office.

Note: Only attorneys and agents registered with the U.S. Patent Office may represent inventors in related matters. The office has geographical and alphabetical listings of the more than 11,000 registered agents. Only these agents may perform patent searches in the patent office. Inventors or their attorneys can make arrangements with one of those agents. U.S. patents are issued by the Assistant Commissioner of Patents, Washington, D.C.
Additional information is provided in the publication, General Information concerning patents and other publications distributed through the U.S. Patent and Trademark Office.

Copyrights

Contact:

U.S. Library of Congress

James Madison Memorial Building

Washington, D.C. 20559

(202) 707 9100 Order Line

(202) 707 3000 Information Line

Copyrights protect the thoughts and ideas of authors, composers and artists. A copyright prevents illegal copying of written matter, works of art or computer programs. In order to ensure copyright protection, the copyright owner should always include notices on all copies of the work.

Business Insurance

Like home insurance, business insurance protects the contents of your business against fire, theft and other losses. Many small businesses must protect themselves from lawsuits and other situations for which they might be deemed liable. All businesses should research the advisability of appropriate liability insurance. Contact your insurance agent or broker.

Sales Tax Number

In [Your State] there may be a xx% percent sales and use tax which applies to the retail purchase, retail site, rental, storage, use or consumption of tangible personal property and certain services. Usually, sales tax must be collected on just about every tangible item sold. A sales tax number is required for each business before opening. You can get your number, plus instructions for collection, reporting and remitting the money to your state, from:
www.sba.gov/world/states.html

OTHER CONSIDERATIONS...

If you have employees, you are required to comply with state and federal regulations regarding their protection. For information on state labor laws, work force availability, prevailing wages, unemployment insurance, unions, benefits packages and employment services contact:

www.sba.gov/world/states.html
Federal information may be obtained by contacting the:

U.S. Department of Labor

Unemployment Insurance Tax
Businesses are required by the state to pay unemployment insurance tax if the company has one or more employees for 20 weeks in a calendar year, or it has paid gross wages of $1,500 or more in a calendar year. The taxes are payable at a rate of 2.7 percent on the first $8,500 in annual wages of an employee. www.sba.gov/world/states.html
Unemployment insurance must be reported and returns made to the state.

Immigration Act

The Federal Immigration Reform and Control Act of 1986 requires all employers to verify the employment eligibility of new employees. The Immigration and Naturalization Service makes available a Handbook for Employers which provides step-by-step instructions on how to complete the "Employer Eligibility Verification" Form I-9, which is required by law when hiring a new employee. To obtain a copy of the handbook and the form and for additional information, click on the link above.

Health & Safety

The Federal Occupational Safety and Health Administration (OSHA) outlines specific health and safety standards employers must provide for the protection of employees. Many states have similar standards. For information contact:
http://www.osha-slc.gov/SmallBusiness/Safety.html

Workers' Compensation

If a business employs three or more people, workers' compensation insurance must be carried to provide protection to those injured in on-the-job accidents. The State Board of Workers' Compensation aids people who need claim assistance.

Minimum Wage

Virtually all business entities are subject to the federal minimum wage, overtime and Child labor laws. Information on these laws and other federal laws, may be obtained from:
U.S. Department of Labor
Wage and Hour Division
www.dol.gov/dol/asp/public/programs/handbook/minwage.htm

Bar Coding

The Uniform Code Council, Inc., (not a government agency) assigns a manufacturer's ID code for the purposes of bar coding. Many stores require bar coding on the packaged products they sell. For additional information contact:

Uniform Code Council Inc., P.O. Box 1244, Dayton, Ohio 45401, (513) 435 3870.

Web Link

www.sba.gov/starting/indexstartup.html

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