- February 11, 2020
- Posted by: Asheesh Sinha
- Category: Business plans
Both state and federal governments have laws that require employers to meet minimum safety and other employment guidelines. Regardless of the industry that your company is in, it is critical that you stay in compliance with these laws at all times. It is important to note that ignorance of a law is generally not a valid excuse for violating it. Let’s look at some specific reasons why obeying the law can make your professional and personal lives much easier.
It Can Kill Your Startup
A single fine for breaking an employment or safety law could be enough to put your company out of business. The possibility of larger fines in the future could also be enough to scare investors away, which can make it harder to raise the capital needed to scale your company. Other businesses may not want to partner with startups that have a poor track record when it comes to compliance.
It Can Put You in Legal Trouble
Anyone who sells firearms know FFL mistakes are easy to make, and while you may not be immediately caught, it is likely that you will be eventually. Even if your company does business as a corporate entity, it may not be enough to shield you from personal liability in cases involving compliance issues. Therefore, you could face the possibility of paying a large fine or spending time in jail for breaking employment or corporate tax laws. You could also face civil lawsuits if people are hurt because your company failed to adhere to state or federal statutes.
It Can Get Bad Publicity
Bad publicity can hinder your efforts to build a successful startup both now and in the future. This is because it is relatively easy to find negative stories or information about a person regardless of how long ago an event took place. Therefore, a violation of the law today could result in media attention that could forever hinder your ability to be a successful entrepreneur. At a minimum, negative attention will require that you spend time and money on reputation management that could be spent on building a quality brand.
Companies must make it a point to follow state and federal regulations at all times. Failure to do so can result in negative consequences that can be difficult to recover from. Those who have questions about a regulation may be able to contact an attorney or a representative from the appropriate government agency for clarification.
A lawyer can help you stay compliant with the law, but consider hiring a professional business consulting firm when developing your business plan.