As a business grows, you need to be sure you are following compliance. Each state has its own set of employment and business laws and regulations that companies need to abide by. Failing to conduct compliant business can result in fines and penalties. Here are five tips for staying compliant in business.
5 Tips for Staying Compliant
1. Decide on a Business Structure
If you are deciding to start a business, its essential to be prepared. You need to determine the structure of your business before you can decide whether or not you qualify for a small business loan. There are different categories for classifying your business, such as Doing Business As (DBA), Corporation or an LLC you need to research to see which offers the best benefits and is the best fit for your business structure.
2. Register Business & Obtain Business License
Research online on how to register your business for the state that you are in because each state has different guidelines that small business owners must follow. After you register your business name, you must obtain a business license and permit so that you can legally do business in the city your business is in. You’ll need to research requirements for the specific city you live in to make sure you are compliant.
3. Stay Up to Date on Laws
A business must have its procedures and policies in place, but you also must be diligent in keeping up to date with changing laws to ensure you are compliant. Laws frequently vary, so a business needs to be up to date to ensure no legal problems, penalties, or fines.
4. Keep Important Contacts List Updated
It’s essential to keep your essential contacts up to date and easily accessible, so that should any issues arise, yourself or employees can make the needed calls to handle matters.
5. Outsource to Experts
If staying compliant seems very overwhelming, consider outsourcing to experts, such as PEO companies who hire specialists who are up to date and knowledgeable in the area of compliance. A PEO company will review your policies and procedures to ensure compliance and can handle other areas such as HR and payroll, to make sure your business is staying compliant.
What is a PEO Company?
PEO, also referred to as a Professional Employer Organization, is a company that will work with your business to provide human resource services and expertise that a business owner may not be able to provide alone. Employers are hiring a PEO for HR support, shared employment liability, and to gain improved benefits packages for employees. The scope of PEO companies’ services can vary, but most handle health benefits, workers’ compensation plans, unemployment insurance claims, payroll processing, and tax compliance, and human resources policies and practices. PEO companies can also offer more specialized services, such as employee training and development, international partnerships, and risk management.
Start-ups, small businesses, and not for profits are usually not experienced in matters of HR, especially with the changing federal, state, and local compliance regulations. PEO companies have specialists who are experts in compliance and can advise your business in this area to ensure you are remaining compliant in your business dealings. A PEO company helps small businesses, start-ups, or not-for-profit guidance from any missteps to avoid any costly penalties that can be fined when regulations are misunderstood and not being appropriately followed.
PEO companies are outsourced from all industries and businesses, including accounting, tech companies, doctors, retailers, engineers, mechanics, and plumbers. A PEO company has many services that can help your business with its mission and values, remain compliant, and create a healthy work environment.