Local, State, & Federal Requirements for Arkansas Small Businesses
When you start or operate a small business, there is so much to consider inside the walls of your business that it is easy to forget about things that need to occur outside of them.
Those outside things often come in the form of local, state, and federal business laws and ordinances that must be met. While navigating these regulations can be complicated, neglecting them has profound implications, including costing you significant time and money in the form of penalties, delays, and fines.
Here are the things you need to know regarding keeping your small business compliant at local, state, and federal levels.
Local Small Business Requirements in Fayetteville
Let’s pretend that we’re opening a business in Fayetteville. What city ordinances will you need to know about and follow?
Local Zoning, Business Licenses, & Taxes in Arkansas
You will need to check the local zoning ordinances for your location to see if you can operate the type of business you have planned, where you have planned. Zoning ordinances regulate everything from where a specific business can locate to how big your sign can be and where it can be placed?
You will also need to apply for a business license (which has rules according to your location in the city), register your business name, and set up your local taxes. Each of these steps can be complex on its own, and each will require research.
Who Oversees Local Enforcement?
Most local regulations are enforced by your City Planning Commission or Division. This will be the first agency that you will need to work with.
AR State Small Business Requirements
After you get everything set up on a local level, you will need to know and meet State of Arkansas’ requirements. This will include things like:
Registering Your Business, Getting Insurance, and Obtaining your State ID for taxes
Although you do not legally need to incorporate your business in Arkansas (i.e., forming an LLC), you must find out where you fall within the state’s tax structure. Plus, you need to make sure you acquire any state licenses to operate your business, even if it was not necessary at the local level.
You will also need to complete a state assessment to evaluate your properties and assets, and there is a big fine if it is not completed on time. Then you will need to abide by the state’s tax structure and comply with state labor laws/posting requirements about minimum wage, overtime, and child labor.
Who Oversees State Businesses?
State business laws and compliances are enforced by the Arkansas Secretary of State’s Business/Commercial Services Division.
Federal Small Business Requirements
The final requirements for your company will come from the top: the federal government.
Self-Employment Tax and Other Federal Labor Laws
The federal government’s major requirements for starting a business involve getting your Employer Identification Number (EIN), preparing to pay Federal Unemployment (FUTA) and the Self-Employment taxes, abiding by federal labor laws, and meeting any health insurance requirements.
Who Oversees Federal Business Compliance?
State laws and compliances are enforced by the US Department of Labor.
Role & Benefit of a Small Business Lawyer
The high-level regulations listed here apply to most businesses, but depending on your industry, you may face more stringent laws and regulations. That is why it is important to have legal representation for your small business. With so many different regulations, it is easy to miss something and get hit with a fine. Even worse, multiple infractions can result in your license being revoked or even your business being shut down.
A lawyer on your team will help both you and your company with inspections, compliance, and to fight unjust fines.
Consult a Business Lawyer About Compliance Issues
As a small business owner, you will need to be aware of local, state, and federal laws and regulations that might apply to you along with a thorough understanding of the legal landscape to avoid violations. Our small business lawyers are ready to help you with any legal and practical small business matters. To schedule a consultation, call (479) 316-3869 or use our online contact form.