Anyone that has ever been involved in running a business whether it be a startup, or a corporate position knows that there are a lot of state and local regulations to deal with when running a business. It can all be a little overwhelming at times. You might be attempting to avoid staying up to date on the legal requirements, but you shouldn’t. Here is why.
Laws Constantly Change
Your state and local laws are constantly being changed. You should be keeping an ear open to what motions and initiatives related to your business are going through the process of being made into law. Not only will this help you keep your policies and procedures up to date, but it also gives you a chance to influence the lawmaking process. If a regulatory law that you support is struggling to be passed, you could reach out and offer your support. If there is one that you oppose, there are ways for you to civilly oppose its passing. If you aren’t sure how to keep up with these regulations, you could consider consulting with a lawyer.
Avoid Licensing Issues
Having the proper licenses to do business is essential to keep things running smoothly. If your license gets revoked, your entire business could go under. By staying on top of the local and state regulations you can avoid this. The government takes compliance very seriously and will revoke your license if they feel that you are not being a responsible employer. For example, Lucy S McAllister points out that failure to maintain workers compensation insurance can get your license revoked. Depending on the issue, you could also face hefty fines and other troubles.
It’s important to remember that state and local regulations are there for a reason. Even if they may seem inconvenient to you, they do have a purpose. According to Wolters Kluwer, often that purpose is to protect your workers. By complying to these regulations, you keep your workers safe and you will avoid tragic accidents. Other reasons for regulations are to protect yourself. Lawsuits from business misconduct can ruin you financially. It’s much better to be on the safe side of things and make sure that you are protected by the law.
If you are concerned that your business practices might not be up to code, you need to immediately direct your focus towards fixing this situation. Non-compliance is going to be like a festering wound. You might be able to ignore it for a little while, but it will kill you if you don’t take care of it. On the other hand, a relatively small amount of treatment can put you on the path to healing. In the same way, a relatively small amount of regulation can keep your business on the path to success.
Read this next: How to Reduce Your Overall Business Budget