Your Business and the Law: Three Things that You Should Be Mindful Of

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Most people turn to business so that they can follow their passions. Being employed by another is oftentimes very limiting. There are workplaces where being creative is not only discouraged but also punished. Employees are usually holed up in specific functions, doing the same things over and over again. When viewed from the humanistic perspective, this setup really is unappealing if not altogether destructive to a person whose main goal is self-actualization.

Starting a business, on the other hand, is an exciting venture. Strategic decisions are made. Finances will have to be ironed out on time. Deadlines are met no matter what.  Quality and quantity demands are constantly adjusted or negotiated with customers. The person actually becomes his or her own boss who functions on his or her own terms.

If you are one of those who have just started their small businesses, there are actually legal points that you should pay attention to. Read on to know what these are.

Tax Payments and Business Registration

Not everyone is happy to pay their taxes, but doing so is a legal requirement so there is no point in trying to evade. In fact, evasion just opens you up to serious troubles. Pay your taxes and be very honest with the figures that you declare.

Fortunately, there are many legal efforts within the federal government to make doing business more attractive in the United States. IRS practically provides small businesses with a good number of opportunities to get significant tax reductions.  Specifically, you as a business owner can ask for exemptions if you are able to keep proper records of your car payments, facility rental, and wage payments among others. If the clerical work required by all this is going to be such a hassle for you, bookkeepers and similar professionals are always ready to help.

For you to be able to pay your taxes, you will have to present your business to the appropriate government agency and have it duly registered. You will be given a business registration certificate. You must realize that this piece of paper does more than just proving that you pay your dues. Many consumers look for business registration certificates before they entrust anything to a business entity. The certificate gives them an idea that you comply with all government regulations, which by the way are made to primarily protect the interests of the consumer.

Intellectual Property Theft and Fair Business Practices

A business that manufactures and sells products rely so much on intellectual property for competitive advantage. Because of this, business entities, and that includes you,  must learn how to fight for what is originally theirs. Just look at Nike and how they ferociously fight for their designs that are copied by other brands.

But before you make claims of infringements, you have to be sure that your design and any other form of intellectual property associated with your business are properly patented. Different states may have different processes for this, so never hesitate to approach the concerned government agencies to ask for help with patents.

Another thing that you should be mindful of is the proliferation of unfair business practices; which include fraud, misrepresentation, and false advertising. Never engage in these things. As with intellectual property theft, always be on the lookout for competitors who do these at the expense of your business.

Bankruptcy Options

No one really does business just so they can see it go bankrupt. But in reality, startups face strong competition and many owners just don’t make the cut. Failures are especially common among first-timers. Conventional wisdom states that failure is part of the whole learning process. While this can be true, your failures don’t have to really hurt you so bad financially. If you see that your business is not going anywhere, consider filing for bankruptcy. What this does is to immediately stop your creditors from collecting debts from you without prior court approval. This will save you from stress and the negative experiences of running a business.

You may also like: 3 Practical Tips for New Entrepreneurs and Small Business Owners

About the Author

Catherine Park is a professional Content Writer and a blogger with full of energy and positivism. She is an expert in writing exclusive contents on business and technologies that are helpful for large enterprises, SMEs and business startups.