Compliance

What is compliance?

Compliance means following the rules that apply to your business. This includes tax laws, employment regulations, licensing requirements, and industry-specific standards. Non-compliance can result in penalties, fines, legal problems, or loss of your ability to operate.

For small businesses, compliance is about knowing which rules apply to you and making sure you follow them.

Common compliance areas

Small businesses typically need to comply with:

• Tax obligations — Filing returns, making payments, collecting sales tax
• Employment laws — If you have employees: payroll taxes, workers comp, labor laws
• Business licensing — Permits and licenses required for your trade
• Contractor regulations — Proper classification of workers as employees vs. contractors
• Insurance requirements — Minimum coverage required by law or contracts
• Record retention — Keeping documents for required periods

Staying compliant

Know your deadlines and requirements. Use calendar reminders for filing dates. Keep good records. When in doubt, consult with an accountant or attorney—the cost of professional advice is usually less than the cost of penalties.