This contributed post is for informational purposes only. Please consult a business, financial and legal professional before making any decisions. We may earn money or products from the affiliate links in this post.
How well do you know about business compliance?
It’s something that all business owners need to be sure of at all times, and yet it can be surprisingly hard to make sure that you are actually taking care of it in the best ways possible.
But it is essential to make sure that your business is working within the law at all times, especially if you want it to stand the test of time.
If you are starting to worry or wonder whether or not you are actually working within the law in your own business, then you might want to take a read through the following article.
Here, we are going to discuss a number of the most common ways that people tend to run their businesses illegally accidentally.
The more aware of these issues that you are, the more you are abler to ensure your business is run legally, so it’s a good idea to make yourself aware of all of the following business compliance issues as well as you can.
Related to business compliance:
- Keeping Your Business Blog Out Of Legal Trouble
- What You Need To Know To Legally Protect Your Business
- How To Know If Your Business Is Running Ethically & Legally
Want to know one area of business compliance you don’t want to screw up?
Probably one of the most common ways that businesses tend to skirt around the law accidentally is by not paying enough tax. More often than not, this is a genuine mistake, although there are of course examples (Google, Amazon) of companies doing this on purpose as well.
But for the average small to medium business, any tax underpayments will likely be a simple error of calculation or an oversight, and as such it is usually pretty easy to fix. Doing so is likely to be essential in ensuring that your business remains in the law and that you don’t get into any trouble personally either.
Keeping Your Records
The first step to ensuring that you pay your tax correctly is to make a point of keeping records at all times. As long as you do, and your records are complete and clear, you will be able to have a much better sense of how much you are getting in, paying out, and what the tax liability is likely to be.
Get Advice From A Professional
You will also want to think about hiring the expert advice of a professional tax accountant, or even a tax lawyer, who will be able to inform you of what you need to do to stay within the law. They might even be able to suggest something which could save you tax, while still ensuring you are being legal, which is of course what everyone is going for with their tax payments.
Put Money Aside
Finally, make sure that you are always putting the money aside in order to pay your tax – and if you run into any difficulties, tell the government about it as soon as you can. They are much more likely to be lenient, and in all likelihood will merely set up some kind of a payment plan with you to ensure that you do pay your tax eventually. However, this will probably cost you interest, so it is obviously not the best move to make.
As long as you are paying your tax on time and in full, you are overcoming the most common way in which businesses get into legal trouble, so this is something that you should dedicate some real time to as soon as you can if you want to ensure your business is in the best situation possible with regards to paying tax.
In almost all areas of business compliance, in every industry you can think of, there is some kind of licensing issue that you need to be as aware of as possible. If you are running your business without the proper license, then you might find your business being shut down and, in the very worst scenarios, could even find yourself personally liable and having to find our website for a good criminal defense lawyer to help you out.
As you can imagine, having the right licenses for your business is therefore incredibly important. But how can you make sure that you are getting this right from the very start?
This is actually one of the easiest laws to make sure that you are working within, and the most common reason that people don’t follow it is simply because they did not do their research. So, before you get trading in your business, make sure that you are fully aware of what licenses you need, and where you can get them – along with how much they tend to cost, so that you can put aside the proper amount of money.
If you are struggling to find this information for the industry you work in, speak to a solicitor about it so that you can be sure you are working within the law from the very start of your business trading.
In most cases, you will be given a chance to get the appropriate license and pay backlogs for the time you didn’t have one, should you be found without. But it’s not worth the risk, and it’s all in all much less stressful to simply ensure that you are properly licensing your business from the start.
Arguably some of the most important business laws out there are those that relate to employees. Typically, these are to do with how you should treat employees, what kind of pay they deserve, what counts as fair dismissal and so on – and it’s not hard to appreciate why this might be important to pay close attention to.
Before you even hire a single individual employee, brush up on employment law as fully as you can.
This is also one of the best reasons why you might want to think about hiring a human resources manager, as they will be well versed in such areas, and it will be their duty and responsibility to make sure that the business works within the law.
Employment law is a huge area, so make sure that you are taking it seriously if you want your business to operate as legally as possible.
Conclusion: Make Business Compliance Top Priority
you can see, there is much to consider here, but as long as you are, you will find that you can much more effectively run your business legally, and therefore without fear of punishment.