Compliance Basics for Business Law

There are many reasons for business owners to strictly comply with the regulations and laws governing their field of practice. Not doing so can have dire consequences, including the destruction of the reputation of a business as well penalties and fines from the government. Business owners should have at least a basic understanding of the laws with which their business must comply.

Business Formation Law

These are the laws that govern how a business is formed. This area of law deals specifically with how businesses handle the regulations that govern their industry and their form of business. For example, a business that has been formed as a corporation has different laws that apply to it than the other business forms, which include partnerships and sole proprietorships. In each case, they may be required to comply with different laws.

Tax Law

This is another basic essential area for the new entrepreneur to keep in mind. They will need to know how to file taxes, withhold taxes and be familiar with their state and local tax laws. They will also need to know which taxes apply to their business type.

Intellectual Property Law

Businesses will need to comply with intellectual property law by not infringing on the created works of others. Intellectual property law covers patents, copyrights and the rights to industrial designs.

Consumer Protection Law

This includes laws against deceptive trading like the Uniform Deceptive Trade Act which has been enacted in various states. Compliance with these laws generally means that a business must not engage in fraudulent practices or misleading advertising.

Employment Law

This governs all matters to do with how employees are treated while on the job, as well as matters regarding safety on the job and wages. There are laws about employee benefits, hiring practices and how employees are to be terminated.