Is Your Business Unknowingly Breaking The Law?
What was your reasoning for starting your own business? Was it to be your own boss or to break the law? That seems like a silly question, doesn’t it – of course you weren’t looking to break the law, but that doesn’t mean that you haven’t. The problem is that when a business owner is not properly clued up about the rules and regulations in place regarding running a business, the law can be easily broken.
When legalities are overlooked and the law is broken, it doesn’t matter if this was the result of an accident or not, the consequences can be severe. You could end up being charged with a federal crime and needing support from a federal attorney to appeal the result of your trial, which you can learn more about at HopeLefeber.com. Breaking the law can have serious consequences, which is why it’s so important that you take business law seriously from the get-go.
To give you some examples of ways in which a business can break the law without meaning to below is a guide detailing some of the most common ways business owners accidentally break the law, and tips for avoiding doing so.
Failing to pay tax
As the owner of business, regardless of how big or small it is, it’s your job to ensure that your business’s accounting is up to date and that you pay your tax on time. Many small businesses put off paying their taxes, thinking that they’ll simply incur the penalties for making a late payment and dealing with their taxes later, presuming that this is the end of it. However, that isn’t the case. Failing to pay what your business owes on time can result in some serious legal consequences.
To avoid this kind of issue happening to you, hire an accountant to deal with your business’s accounting and tax submission.
Using investor funds incorrectly
If your business has investors on board, then you should be aware of the fact that you can’t simply spend their money on whatever you like. Usually, when investors agree to invest in a business, specific terms for how this money should be spent are set out via a legally binding contract. Many business owners make the mistake of not realizing how serious failing to spend this money on the agreed areas can be,
To prevent you and your business from getting in trouble due to the spending of investor funds, ensure that you spend them wisely. Never spend investor funds on an area of your business that they’re not approved for, only use these monies for what they are donated for.
Not complying with federal rules regarding salary and pay
As a business owner while you can determine how much a team member is worth to you in terms of their salary or hourly wage, you have to ensure that you are paying them above the minimum legal amount. Otherwise, you could end up in a lot of trouble.
To ensure that you don’t get into trouble for underpaying your team members, it’s important to take the time to look into the rules and regulations that are in place regarding salary and pay. ermine how much