According to the Small Business Administration,, your small business has to comply with numerous local, state and federal regulations. Research the regulations carefully to avoid penalties and other serious consequences. The following is a non-exhaustive list of the most common regulations that affect small businesses.

Business Licenses – State, city, or county.

Certificate of Occupancy — If you are planning to occupy a new or used building.

Business Organization — Consult a tax accountant or attorney prior to deciding which form of legal structure is right for your business.

Fictitious Business Names — If you use a “dba,” you may have to register the fictitious name pursuant to the Trade Name Registration Act.

Protecting Your Idea — Apply for trade name, trademark, patent and copyright protection with the state and federal government

Tax Requirements — You must withhold federal income taxes, state income taxes and FICA (Social Security) from wages paid to employees.

Federal Employer Identification Number — Apply at

State tax information – Apply at your state’s website or call your state government.

Federal Self-Employment Tax – Apply at

Business Insurance — You must have business insurance to protect your business such as: Liability, Property, Business Interruption, Key Man, Automobile, Office and Director, Home Office, Errors and Omissions.

Sales Tax Number – Required for retail purchases, rental, storage, and consumption of tangible personal property and certain services.

Unemployment Insurance Tax — required by the state if the company has one or more employees for 20 weeks in a calendar year or pays gross wages of $1,500 or more in a calendar year.

Immigration Act – Requires Employment Eligibility Verification Form I-9.

Health and Safety — The Federal Occupational Safety and Health Administration (OSHA) outlines specific health and safety standards.

Workers’ Compensation — If business employs three or more people.

Minimum Wage –All business entities are subject to the federal minimum wage, overtime and child labor laws.

Bar Coding — The Uniform Code Council, Inc. assigns a manufacturers’ ID code on the packaged products you sell.

For more information about these and other important business and legal topics, please visit our website at, Copyright 2006. Indigo Business Solutions is a registered trade name.

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