Small Business White Papers
Employment Regulations
Workers' Compensation
New Hires
Licenses and Permits
Fictitious Business Name
Sales Tax Number
Health and Safety
Overview
If you find all the paperwork and taxes a bit overwhelming, you're in for a bigger surprise when you begin to sort through all the business laws, rules and regulations that you are expected to know and comply with, or face consequences. One of the main reasons small businesses fail is because they don't seek help at critical junctures in their development. If you want to be successful there's no getting around learning licensing, tax and other regulations of starting and running a business or having a partner like ADP to help you along the way.
Workers' Compensation
All businesses with three or more employees must have some level of workers' compensation insurance in order to protect the employer against punitive damages for injuries an employee suffers on the job. State law varies so you will need to find out what is required by your state.
Managing Workers' Compensation insurance can be a confusing process, more importantly, large premium deposits can disrupt your cash flow. ADP's Pay-by-Pay® program eliminates large premium deposits because premiums are calculated and collected as they are earned, based on actual payroll. Payments are automatically collected and paid to the insurance carrier, eliminating the need for you to write checks. You can be confident that your payments are accurate and on time. For more information, view our online demo.
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New Hires
In addition to getting your newest employee's social security number and completed W-4 and I-9, employers are required by law to report information about new employees to their appropriate state agency within 20 days of the employee's date of hire. These time-consuming reports take you away from your business. ADP can help to eliminate your New Hire Reporting headaches by processing the necessary forms on time and accurately.
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Licenses and Permits
There could be any number of licenses and permits required due to the nature of your business, its location, or other such factors. Not only may your city have certain requirements, but the county and state as well. You'll need to check with the appropriate city, county and state offices to make sure you are operating within the law.
For example, 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. Local zoning laws can also impose many types of restrictions that will affect your ability to maintain a home office or business. In some places, property owners can't build separate structures. There might also be a restriction on how much of your home can be used exclusively for your home office or business. Or, it could be that your local zoning ordinance prohibits advertising signage in order to maintain the neighborhood's ambiance.
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Fictictious Business Name
Businesses that use a name other than the legally registered name must register the fictitious name with the county as required by the Trade Name Registration Act. This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name. You can get more information from your local or state government.
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Sales Tax Number
Each state has its own sales and use tax which applies to the retail purchase, retail site, rental, storage, use or consumption of tangible personal property and certain services. Simply put, sales tax must be collected on just about every tangible asset sold.
Know that a sales tax number is required for each business before opening. The number, plus instructions for collection, reporting and remitting the money to the state on a monthly basis can be obtained from your state government.
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Health and 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 also have similar standards. You should contact your local OSHA office for specifics.
Complying with business laws and regulations can be onerous is such a headache for small businesses that the SBA is offering its hand in helping out. The SBA in cooperation with several Federal agencies developed Business.gov, an online resource designed to provide legal and regulatory information for small businesses. The site is also a gateway to federal, state and local information that affects small businesses.
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The "New Business" section is not intended to replace legal or accounting services. If legal, accounting, or other professional assistance is required, the service of an attorney or certified public accountant should be sought.