Small businesses are the forefront of the American economy. They drive economic growth and creativity. According the US Chamber Foundation, 98% of businesses have fewer than 100 employees. Unfortunately, these businesses are also the first to feel the effects of strict government regulation and economic downfall.
Federal regulations are growing and costing the American economy as much as $1.9 trillion a year in direct costs despite the size of the business. The more regulations that small businesses face today, the more hoops they must jump through to make their business successful. When owning a small business, be prepared for the government to put regulations in the way of future plans. Always have a plan B in place.
Licensing, income tax, and business tax are all variables of any legistics that are controlled by the government. Change in these variables can greatly affect small businesses, because funding and employees are at a smaller ration than a larger business.
It is important to note that sales tax, wage laws, and labor laws are also determined by the government. If you are not prepared for any of these variables to change, there is a chance you could be left with less resources and money towards your business.
Content Writer and Researcher