Federal Regulations Your Small Business Must Comply With

Regulatory burdens are said to be some of the greatest challenges for small business–owners. Such hyper-focused accountability can cause you headaches on the daily. Whether you’re a seasoned businessperson or a newbie revving up a start-up, you need to comply with a whole variety of federal business laws. Each requires an equivalent spotlight of attention.

But never fear—you’re not alone in this task. Seeking external advice from a business lawyer or law advisor is critical to determining which regulations apply to your specific business and industry. We’ve also compiled a baseline list of which laws to be aware of. Whether you’re managing and hiring employers, setting up services, working on taxes, or thinking about marketing, here are some common federal regulations your small business must comply with.

Tax Codes

Tax codes are complex—and business taxes are just as vexing. Any company that’s a legally registered business in the US has to pay federal and state taxes. However, not all businesses are the same. The type of taxes you need to pay depends on if you’re the sole proprietor, a partner, or a shareholder in the business structure. An accountant can help you sort out the specifics.

Sales tax is another of the federal regulations your small business must comply with. The majority of states requires you to collect sales tax from clients or customers if you have a nexus, or a physical connection. A registered license with the state sales tax office is required; this is also applicable to online sales if you have an e-commerce website selling physical goods.

Employment and Labor Statues

The government regulates a plethora of laws regarding your employees. These laws include equal opportunities during hiring, pay logistics, workplace environment safety, employment status, and affordable benefits. The major regulatory players are wage laws that outline minimum and overtime pay. The Affordable Care Act is also notable, as it outlines health care coverage.

Record-keeping and reporting requirements mandated by the Occupational Health and Safety Act (OSHA) are also at the top of the list. It’s critical to be aware of OSHA federal regulations vs. individual state plans to know which safety plan your business has to follow. All employers must fully comply with health and safety standards to protect their companies and employees. The government could visit your place of business for inspection, so an OSHA consult could be worth it.

Advertising and Marketing Requirements

Small businesses must comply with regulations set by the Federal Trade Commision (FTC) in terms of business marketing. There may also be local or state laws to look out for when you’re advertising. The gist of these laws states that you cannot make any false or purposely misleading claims. A good advertising strategy can lead your business to success, but it’s crucial not to violate any rules that could lead to fines and make that marketing budget worthless. By ensuring you’re on the right side of modern legislation, the bottom line will set up your business for great success.

This post contains affiliate links. Affiliate disclosure: As an Amazon Associate, we may earn commissions from qualifying purchases from and other Amazon websites.

Written by Logan Voss

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.