Building a compliant business is the holy grail for many companies.
Getting this right is critical if you want to avoid issues occurring in the future and really move forward with your enterprise.
But what do you need to do to be maximally compliant?
What actually works and how can you make it happen?
Here are some rules to follow.
Pay all of your taxes
You’ll want to start with the obvious: paying all of your taxes.
You’ll need to do these at the national level, the local level, and at the sales level if you want to be compliant.
Always file on time, even if your taxes are zero.
Sending in forms means that you’re following the rules set by the tax authorities, and it makes them more likely to play nice with you.
If you don’t do this and fall behind, then they could challenge you or make your life more difficult.
They could also send out fines and penalties, which add up fast.
Get the right licenses and permits
Another thing you’ll want to do is make sure you have all of the right licenses and permits in place.
These include:
- Seller’s permits for sales taxes
- Professional licenses depending on the industry that you’re in
- General business licenses if those are required in your local area
You may also need to submit to health and safety inspections and zoning permits depending on where you are.
If you’re not sure what compliance licenses and permits you need, then online tools can help you.
These can provide you with a quick list of things you need to do before you start selling.
Train your people
It’s also critical to train your people to be compliant and to remain safe.
When you start hiring people, it’s not just you who is responsible for the business following the rules.
It’s also everybody else in the organization.
So something you want to stay on top of, if you can.
HSE Docs and other organizations list various training options that your staff might want to complete.
These cover everything from food safety to fire awareness.
Follow employment laws
If you have employees and you want to follow all of the relevant employment laws, make sure that you understand the difference between an employee and an independent contractor.
There tends to be large variation in the rules regarding taxes and benefits.
You should also follow no discrimination rules, including EEOC rules, and pay the minimum wage and overtime when required.
Also familiarize yourself with OSHA basics for a safe workplace environment.
Following minimum standards prevents any blowback later on if somebody gets injured on your premises.
Handle payroll and benefits correctly
Finally, you want to make sure that you’re handling your payroll and benefits correctly.
Knowing when to withhold payroll taxes is important, especially when you have regular employees and need to submit 941 forms.
You also need to classify exempt and non-exempt workers correctly for overtime.
This can be challenging and is based on the contracts that you have with them.
Hope you’ve found our article, Business Compliance For Dummies useful.
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