When you want to open a business, or you are already running a business, there are some common and local laws that you have to follow depending on the locality or where you want to start the business. Failure to follow these laws can make you end up in court. Even when it comes to the popular blockchain, there are laws which you have to follow when you want to patent the blockchain
The following are some of the types of business laws
- Business formation laws
The law defines the type of business that you form for example a sole proprietorship, a partnership, or a limited liability company. Each one of these types of businesses has different legal implications and tax structures. Before you decide on which type of business to form, you should consult a tax attorney or an accountant.
- Taxation laws
Businesses also are entitled to pay taxes just as individuals. They should pay taxes on income that they earn. Tax laws determine how a business should pay taxes to the government. The Internal Revenue Service [IRS] enables business owners to choose from the several business structures that affect taxation.
Sole proprietorship and partnership report business earnings on individual income tax returns while the limited companies are considered tax entities that are separate from the owners.
- The Intellectual property laws
Intellectual property describes the creation of the mind, like art, literature, company logo, and inventions. Intellectual property laws protect creators of these various types of intellectual property which gives the creators the right to enjoy profit and also to take legal action against those who copy their work without permission. Intellectual property laws also allows businesses to prevent their competitors from stealing and using their ideas.
- Employment laws
When a business is beginning to operate, it may operate solo, but as the time goes and it expands, business owners may hire employees to help in running the business. The employment laws govern how employers and employees should interact. The employment laws also require some businesses to pay a minimum wage to the employees, and to pay them at a rate of one and half their normal pay for overtime work.
Through this law, the government sets various workplace safety rules to ensure that the businesses provide a safe working condition for the workers.
- Competition laws
The competition law is designed to promote business competition by fighting anti-competitive behaviors such as monopolization and price fixing. Competition is healthy because it leads to better products and services and fair prices. The government has the power to prevent companies from merging or force them to split into different divisions to promote competition.
- Environmental law
Environmental laws seek to establish rules that limit the negative impact that the business can have on the environment. For example, the laws that force businesses to use certain practices to prevent air and water pollution. The government can penalize the companies that don’t follow these environmental rules.
Some laws require companies to obtain permits that allow them to release pollution into the environment. The environmental law also regulates the use of chemicals and pesticides.