Setting up a new business is incredibly exciting and the start of what will hopefully be a rewarding and lucrative chapter in your life. It can also be daunting, especially if you do not have much experience or knowledge about starting out. One area where you need to make sure you pay close to is any regulations. There are various rules and regulations which an organization must abide by in order to operate legally. You can receive federal, state and local support from government agencies, but here is a quick guide so that you have an idea of what you should do before getting starting with your business.
First, you must decide on your organizational structure. It is worth discussing the best type of structure for your particular company with an advisor or attorney, but your options are to be incorporated, to form limited liability company, a partnership or a sole trader. When you have decided, you will need to contact the Secretary of State for important documents and business filings. You will need to regularly update these documents which can usually be done online and are relatively straightforward.
You must obtain a tax identification number for your company, and you may also qualify for certain types of tax categories, so be sure to discuss this with your accountant. You can find all of the information that you need relating to tax matters and business regulation info from the Internal Revenue Service website.
There will be filings and regulations to becoming an employer, so you will need to check with federal, state and local bodies if you plan on hiring employees. Federal agencies require you to provide information about fair employment practices and minimum wage, and you could face a fine or even litigation without providing this information. These are usually the same for state agency postings, but always check to make sure that you are abiding by these regulations.
Industry Codes Of Practice
You may also find that there are particular codes of practice that you will need to abide by depending on your particular industry. These are guidelines for proper and fair dealings between you and the consumer, and are issued by an official body so that members can abide by their ethical standards. As an example, the retail grocery industry uses the Groceries Supply Code of Practice or GSCOP, and this is a set of rules set out by the UK government that encourage the major supermarkets to treat their suppliers fairly.
It is important to note that the rules and regulations may vary depending on the state that you are operating out of and your industry. As an example, you may need to pay for workers’ compensation if you have three or more full-time employees.
It is easy to be perturbed by all of this complex information when setting up a business, but seeking the advice of a business advisor, accountant, and various government bodies can help you to get set up and ensure that you are abiding by all the various rules and regulations.