Government Regulations and Your Business

Below is a checklist of the most common requirements that affect small businesses, but it is by no means exhaustive. Bear in mind that Government regulations vary by industry. If you're in the food service business, for example, you will have to deal with the health department. If you use chemical solvents, you will have environmental compliance to meet. Carefully investigate the regulations that affect your industry. Being out of compliance could leave you unprotected legally, lead to expensive penalties, and jeopardize your business.

Ö  Americans with Disabilities Act

Ö  Employment Discrimination

Ö  Business Licenses

Ö  Occupational Licenses

Ö  Certificate of Occupancy

Ö  Business Organization

Ö  Fictitious Business Name

Ö  Protecting Your Idea

Ö  Trademarks

Ö  State Registration of a Trademark

Ö  Federal Registration of Trademark and Patent

Ö  Patents

Ö  Copyrights

Ö  Business Insurance

Ö  Sales Tax Number

Ö  State Regulations and Other Considerations

Ö  Unemployment Insurance Tax

Ö  Immigration Act

Ö  Health and Safety

Ö  Workers Compensation

Ö  Wage Payments

Ö  Bar Coding

Ö  Electronic Commerce

Ö  Small Business Regulatory Enforcement Fairness Act

Americans with Disabilities Act 

The Americans with Disabilities Act requires access to public accommodations and commercial facilities. It's good business sense, and failure to comply can result in severe penalties. For further information, see the American's with Disabilities web site at http://www.usdoj.gov/crt/ada/adahom1.htm

The Americans with Disabilities Act also prohibits discrimination in employment against persons with disabilities. Under the law, an employer cannot discriminate against an individual with a disability who, with or without a reasonable accommodation, can perform the essential functions of the job held or desired. For additional information concerning the employment provisions, go to the web site of the Equal Employment Opportunity Commission, at http://www.eeoc.gov/facts/fs-ada.html. Information concerning reasonable accommodation is provided at http://www.eeoc.gov/facts/accommodation.html.

Employment Discrimination 

The Equal Employment Opportunity Commission enforces Title VII of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, religion, sex, and national origin. It also enforces the Age Discrimination in Employment Act, which prohibits discrimination on the basis of age against persons 40 and older; Title I of the Americans with Disabilities Act, which prohibits employment discrimination against people with disabilities; the Equal Pay Act; and sections of the Civil Rights Act of 1991. Information concerning race and color discrimination may be found on the Internet at http://www.eeoc.gov/facts/fs-race.html; about national origin discrimination at http://www.eeoc.gov/facts/fs-nator.html; about religion discrimination at http://www.eeoc.gov/facts/fs-relig.html; about pregnancy discrimination at http://www.eeoc.gov/facts/fs-preg.html; about sexual harassment at http://www.eeoc.gov/facts/fs-sex.html; and about age discrimination at http://www.eeoc.gov/facts/age.html. Information for businesses is also available by calling the EEOC at (202) 663-4900 or (202) 663-4494 (TTD), or the EEOC's Publication Distribution Center at 1-800-669-3362 (Voice) or 1-800-800-3302 (TTD).

Occupational Licenses

Many types of businesses require that you be licensed or certified to practice in a particular field. Accounting and real estate appraisal are examples of fields that require licenses or certification. A representative from your profession's regulatory board can assist you.

Business Licenses

There are many types of licenses. You need one to operate legally almost everywhere. If the business is located within an incorporated city limits, a license must be obtained from the city; if outside the city limits, then from the county. For more information contact the county or city office in your area. The Small Business Administration has a web site that lists state contacts to assist you: http://www.sba.gov/hotlist/license.html.

Certificate of Occupancy

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. For more information contact the county or city office in your area.

Business Organization

There are many forms of legal structure you may choose for your business. The most common structures are Sole Proprietorships, General and Limited Partnerships, C and S Corporations and Limited Liability Companies. Each legal structure offers organizational options which are appropriate for different personal situations and which affect tax and liability issues. We suggest you research each legal structure thoroughly and consult a tax accountant and/or attorney prior to making your decision.

Fictitious Business Name

Businesses that use a name other than the owner's 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.

Protecting Your Idea

If applicable to your business, you may want to apply for trademarks, patents and your copyrights. Information regarding these applications is listed below.

Trademarks

Trademarks are names or symbols used in any commerce that is subject to regulation by state government or the U.S. Congress.

State Registration of a Trademark:

Trademarks and service marks may be registered in a state for a term of ten years. For more information about Applications for Registration of Trademark or Service Mark in your state contact:

www.sba.gov/world/states.html

Federal Registration of Trademark and Patent

To register a trademark contact:

U.S. Department of Commerce
2900 Crystal Drive
Trademark Assistance Center
South Tower
Arlington, Virginia 22202
(703) 308-9000 or (800) 786-9199

To register a patent, contact:
Asst. Commissioner for Trademarks, Patent Applications
Washington, D.C. 20231 (800) 786-9199
Also, visit their web site.

Caution: Federally registered trademarks may conflict with and supersede state registered business and product names. Businesses are encouraged to check for conflicts with federal trademarks.

Patents

Contact:

Superintendent of Documents
P.O. Box 371954
Pittsburgh, Pennsylvania 15250-7954
(412) 512-1800

New and useful inventions can be protected by a U.S. patent. Professional assistance from a patent attorney is strongly urged because patent procedures are detailed and technical. A patent search is performed to see if a patent currently exists on the same or nearly the same device and, if not, to make proper application with the Patent Office.

Note: Only attorneys and agents registered with the U.S. Patent Office may represent inventors in related matters. The office has geographical and alphabetical listings of the more than 11,000 registered agents. Only these agents may perform patent searches in the patent office. Inventors or their attorneys can make arrangements with one of those agents. U.S. patents are issued by the Assistant Commissioner of Patents, Washington, D.C.

Additional information is provided in the publication, General Information Concerning Patents and Other Publications, distributed through the U.S. Patent and Trademark Office.

Copyrights

Contact:

U.S. Library of Congress
James Madison Memorial Building
Washington, D.C. 20559
(202)707-9100    Order Line
(202) 707-3000   Information Line

Copyrights protect the thoughts and ideas of authors, composers and artists. A copyright prevents illegal copying of written matter, works of art or computer programs. In order to ensure copyright protection, the copyright owner should always include notices on all copies of the work.

Business Insurance

Like home insurance, business insurance protects the contents of your business against fire, theft and other losses. Many small businesses must protect themselves from lawsuits and other situations for which they might be deemed liable. All businesses should research the advisability of appropriate liability insurance. The Insurance Information Institute can assist you in identifying the various types of insurance, and other considerations. Contact your insurance

agent or broker.

Sales Tax Number

In most states there is a sales and use tax which applies to the retail purchase, retail site, rental, storage, use or consumption of tangible personal property and certain services. In other words, sales tax must be collected on just about every tangible item sold.

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:

www.sba.gov/world/states.html

State Requirements and Other Considerations

All businesses with employees are required to comply with state and federal regulations regarding the protection of employees. For information on state labor laws, work force availability, prevailing wages, unemployment insurance, unionization, benefits packages and employment services contact:

www.sba.gov/world/states.html

Federal information may be obtained by contacting the:

U.S. Department of Labor

Unemployment Insurance Tax

Businesses are required by the state to pay unemployment insurance tax if the company has one or more employees for 20 weeks in a calendar year, or it has paid gross wages of $1,500 or more in a calendar year. The taxes are payable at a rate of 2.7 percent on the first $8,500 in annual wages of an employee. www.sba.gov/world/states.htm

Unemployment insurance must be reported and returns made to the state.

Immigration Act

The Federal Immigration Reform and Control Act of 1986 requires all employers to verify the employment eligibility of new employees. The Immigration and Naturalization Service makes available a Handbook for Employers which provides step-by-step instructions on how to complete the "Employer Eligibility Verification" Form I-9, which is required by law when hiring a new employee. To obtain a copy of the handbook and the form and for additional information contact:

http://www.ins.usdoj.gov/graphics/formsfee/forms/i-9.htm

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 have similar standards. For information contact: http://www.osha-slc.gov/SmallBusiness/Safety.html

OSHA also has a widely respected program called "OSHA Advisors". This is a free, downloadable, and interactive program that can give you feedback on safety concerns. It is available at http://www.osha-slc.gov/dts/osta/oshasoft/index.html.

Workers' Compensation

If a business employs three or more people, workers' compensation insurance must be carried to provide protection to those injured in on-the-job accidents. The State Board of Workers' Compensation aids people who need claim assistance.

Wage Payments

Virtually all business entities are subject to the federal minimum wage, overtime and child labor laws. Information on these laws and other federal laws, may be obtained from:

U.S. Department of Labor
Wage and Hour Division

www.dol.gov/dol/esa/public/whd_org.htm

Bar Coding

The Uniform Code Council, Inc., (not a government agency) assigns a manufacturer's ID code for the purposes of bar coding. Many stores require bar coding on the packaged products they sell. For additional information contact: Uniform Code Council Inc., P.O. Box 1244, Dayton, Ohio 45401, (513) 435?3870.

Electronic Commerce

The Department of Commerce has a web site, http://www.ecommerce.gov , that can be used as a resource for regulations and other topics concerning electronic commerce.

Small Business Regulatory Enforcement Fairness Act (SBREFA)