5 Ways to Keep Your Small Business in Compliance
As you strive to grow your small business, there is one thing to keep in mind: ensuring its compliance. Each state has its own set of business laws to abide by. If you fail to do what the state requires, you can lose your protections and accrue fees and penalties. Here are five basic things you need to do to keep your business safe.
Small Business Compliance Tips
Confirm Your Business Is in Good Standing
You need to make sure your business is in good standing is important; check to ensure your business has a Certificate of Good Standing. This is a document issued by the state that says you are cleared to run your business. Essentially, it’s a document that shares the compliance status of a business.
It’s smart to have this certificate on hand; it will save you time since lenders and other states may require it if you want to do business with them. You may also acquire various fees if you do not have it.
Decide on Your Business Structure
If you have yet to launch your business but have already done your research to determine if you qualify for a small business loan, it’s important to recognize the utmost importance of the preparation stage. One part of this stage is deciding on the structure of your business.
You can choose between a DBA, which stands for Doing Business As, Corporation or an LLC. Each of these options offers its own set of benefits, but you need to determine which is the best fit for your business.
Register Your Business and Obtain Business Licenses
Make sure to check California’s laws for PEOs if you are using a PEO to outsource employee management tasks. Many people find it beneficial to work with a PEO, especially if they are new to the state and are not well-versed in the laws.
Look online to learn how to register your business. Each state has different guidelines the small business owner must follow. After you register your business name, you must obtain any required business licenses and permits so you can do business in your city. Check for other requirements specific to where you live.
Be Aware of the Constantly Changing Laws
It’s vital to have all procedures and processes in place, but that doesn’t mean you’re in the clear. You must stay current with the continually changing laws to ensure your compliance.
The New Parent Leave Act, minimum wage changes and salary history inquiry ban are just a few examples of changing laws in the state of California alone. If a business fails to comply with the laws, there will be legal problems, penalties and be fined. If you work with a PEO, they’ll be up to date on these laws and ensure that your business is following the most current laws. It’s essential to learn how pick the right PEO Service so you work with one that best suits your business needs.
Keep Your Important Contacts List Updated
It’s important to have all contact information at hand so you can handle important issues that might arise as you are doing business.
While you are conducting business, you may come across a range of challenges, but most businesses run into hiccups related to HR and compliance.
If you hire a HR department to work in-house, you will notice the expense due to their high demand. If you opt to work with a PEO, you’ll notice it’s more affordable and more effective overall; PEO’s work with multiple businesses to ensure compliance.
To ensure that your company is in good standing and in compliance, always make sure you’re aware of the laws and operate within them.
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