Regulatory and obligatory requirements refer to the rules and regulations that govern the establishment and daily operations of businesses. Regulations and obligations vary with the type of business and the industry therein and as such, it is advisable to conduct research and seek legal and business advice before establishing a business in a given industry. It is important for small business owners to ensure that their businesses keep up-to-date with the regulations and obligations of their specific industry to avoid inconveniences and disruptions in their daily operations.
Banks, creditors and other financing institutions consider compliance with the regulatory and obligatory requirements of your business as an indicator of your business’ financial health and stability. Further, consider familiarizing with the nature and structure of businesses to understand the associated tax requirements and determine the viability of the structure and tax to your business.
Consider the following factors when reviewing your business’ regulatory and obligatory requirements.
Part 1 – Regulatory Obligations for Sale of Goods and Services
1 Have you reinforced the safety of goods and services?
2 Are consumer guarantees honored?
3 Do your standard form contracts contain unfair terms?
4 Is your business complying with lay-by agreements and price rules?
Part 2 – Regulatory Obligations for Workers’ Employments
5 Are you compliant with injury laws?
6 Have you undertaken workers’ compensation insurance?
7 Do you keep employee records?
8 Have you established a safe work environment?
9 Are there provisions for equal opportunity laws?
10 Is your business compliant with workers’ pay and employment requirements?
11 Are you compliant with tax and superannuation requirements?
Part 3 – Legal Requirements
12 Is your business name registered?
13 Have you undertaken business insurance?
14 Have you obtained an Employer Identification Number (EIN)?
15 Is your business entity designated properly?
16 Are you conversant and compliant with federal tax laws?
17 Are you compliant with the after-hiring rules and regulations?
18 Have you obtained the appropriate licenses and permits for your business?
19 Do you practice proper bookkeeping practices?
20 Have you taken measures to protect your intellectual property (IP)?
21 Is your business compliant with security laws?
22 Do you have an established privacy policy?
23 Is your founder’s agreement in writing?
Notes:
- Always check with your state’s consumer laws and acts to understand the specific regulatory and obligatory requirements for your business
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