While starting a business, business owners are generally excited and messed up with several things like finding a good place for setting up the office, hiring employees and many more. However, these excitements at the beginning often lead to the overlooking of certain legalities which can result into creating severe hindrances in the path of your business. There are times when you break certain laws unknowingly and you don’t realize that your mistakes have crossed the line into criminal conduct.
Some ways in which you unknowingly break the laws
It is very important for the business owners to know how the laws are broken unknowingly even when they have just started their business. Some ways in which the business can break the laws –
- Failing to pay the federal payroll tax deposits – many startup companies and companies with low or insufficient working capitals often fail to pay their federal payroll tax.
- Inadvertently allowing the destruction of documents relevant to litigation – often when you are in litigation, you need to preserve many documents, but knowingly or unknowingly, many of the documents may be damaged.
- Improper use of investor funds – the money of the business should be spent for the business purpose only, if anyone is taking money from the trust then it is his or her duty to not misuse the money and spend it for own use.
- Not reporting, charging or collecting sales tax – many startup companies fail to pay their sales tax, which results in huge problem for them, also many large businesses fail to pay their sales tax.
- Overselling your qualifications while bidding a contract – many companies falsely claim that their company has enough experience, quality and efficiency to complete the contract within the time period, but in reality they can’t stand by their words, this also leads to a major problem.
- Failing to pay the staffs – many startup companies due to their shortage of funds fail to pay their employees; also many established companies don’t pay their staffs.
- Mistakenly selling a recalled product.
- Improper billing for government services.
- Claiming excessive or improper itemized deductions on one’s tax returns.
Some important things to keep in mind
To run your business properly, you must rectify your mistakes. Especially for the small business owners and the new business owners, it is very essential to work very carefully avoiding all the mistakes that can take place. Some things to ponder on –
- Pay the taxes on time
- Pay your employees on time and pay them what they deserve
- Behave properly with your staffs
- Don’t claim false qualities about your business
- Try to complete your contracts within time
- Don’t hire child labors
- Make sure you are having a license
- Pay the sales tax on time.
By following some rules and regulations, you will never break any law mistakenly. When you can realize your mistakes, then you can run your business the proper way and also expand your business.