[This article was written by Anita Ginsburg.]
You finally have reached the dream of running your own business. As you’ve probably figured out now, a lot of business owners are just flying by the seat of their pants trying to figure everything out. However, when it comes to federal regulations, you need to know what you’re doing. It may seem overwhelming to figure out how to comply with complex regulations, so here are four tips that can help ensure you operate legally.
Understand External and Internal Compliances
Complying with federal regulations can be broken down into two main categories. First, there’s the external compliance component. This is the paperwork that you file with the government, both state and federal and includes things like filing taxes. The second is internal compliance. This is record-keeping that you keep in-house and will utilize for instances like proving your legal case or selling your business.
Ask for Expert Help
There are various areas of the federal regulations that you’ll have to comply with. Trying to read through the legal jargon personally and understand all of those regulations can be tough. Instead, you should seek the help of experienced professionals to make compliance black and white.
For example, a sales tax consultant can help you follow the correct steps of the sales tax registration process. If you don’t follow the correct steps, you may be denied or may face trouble later.
Determine Your Entity Type
There are various entity types to choose from including a corporation, an LLC, or a sole proprietorship. Each entity structure comes along with its own list of compliance necessities. Therefore, it’s important that you realize that what another business may have to do to reach compliance could be different from what your business has to do if both of your businesses are different entities.
Do Some Research
While many of the government forms that you fill out to specify your business as legal come along with information packets about how to comply with federal regulations, you shouldn’t stop there. You should be doing some research about your industry online. Even a quick Google search for your industry’s federal regulation can be exceedingly helpful to determine specific compliance regulations you’ll need to research further. If you know others operating in your industry, don’t hesitate to ask them. You may just find that you end up learning a lot that you didn’t know about compliance standards.
Running a business is a big investment. Being able to properly navigate federal compliance can be an overwhelming task to start. However, when you employ the four tips above, we’re sure that you’ll find it easier to navigate.
Anita is a freelance writer from Denver, CO. She studied at Colorado State University, and now writes articles about health, business, family and finance. A mother of two, she enjoys traveling with her family whenever she isn’t writing. You can follow her on Twitter @anitaginsburg.