Laws Relating to Different Businesses Laws Related

Laws Relating to Different Businesses

Laws Related to Different Businesses

Entrepreneurship is the hallmark of the U.S. economy and more people are starting their own ventures today than ever before. While starting a business, one of the most overlooked aspect is the laws and legal requirements. A good amount of time and effort should be spent on understanding and implementing these related laws because they will make the operations and expansion easy in the future.

Federal, State and Local Agencies

The exact agencies and laws that govern your business depend upon its nature. Starting a pizza business comes with permits and licenses from different health agencies. The local health department of your city or county is responsible for issuing a permit, requesting an inspection or filing a complaint. Your business also needs a business license or tax permit from the city or county revenue department (SBA, 2011). For a web design business also, you need a business permit from your local county or city.

The agency governing biotech companies and approving their final product is the Food and Drug Administration (FDA). They oversee the potential use of the drug, its after-effects, patenting and other legal procedures. The Congress also plays an indirect role in biotech and drug companies by passing bills from time to time in an attempt to protect the production and distribution of essential drugs (Frank, 2002).

Laws

There are certain laws that relate to any kind of business that is started and these are common to all of three businesses above. The first law is to obtain the business licensing and then, the State Employer Identification Number should be obtained from the respective state. The rules and forms required to obtain this can vary from state to state. Depending on whether your business is a sole proprietorship or partnership or a limited liability company or corporation, you will be subject to other laws. In the case of a biotech company, you should also get a Federal EIN so that it makes it easy for the different federal agencies to monitor your operations. Your business will also be subject to the provisions of the Occupational Safety and Health Act of 1970, Mine Safety and Health Act of 1977 and the Fair Labor Standards Act.

Legal steps

The first legal step to starting a business is to determine the structure of your business- whether it has to be a sole proprietorship, partnership, LLC or corporation. The second step is to register a business name with the state government in the state in which the business is likely to be conducted. This has to be followed by the application for a tax identification number from the IRS. You also have to register with the state and local Government to ensure that you pay state and local taxes. The last legal step is to obtain the business licenses and permits related to your business. (SBA, 2011).