Government Regulations & Your Business

It may be inconceivable to you that your home-based consulting service or food preparation 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
contact:

www.ins.usjog.fov/graphics/formsfee/form/I-9.htm

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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