For many business owners, whether it’s a small mom-and-pop establishment or the cake business operating out of your neighbor’s basement kitchen, operating and owning a small business can be a very rewarding experience. Built on innovation, inspiration, and many long hours of hard work, small businesses worldwide have learned to adapt and react to a culture that has turned to big-box retailers.
While ownership has its perks, such as flexible scheduling and control over decision making, there are legal issues facing small business owners. Below are their top legal issues as found through research conducted by the National Federation of Independent Business:
- Health insurance costs. Long gone are the days when employers were able to add free or inexpensive health care to a comprehensive benefits package. The cost of providing health care to workers grows annually and the future under Obamacare could mean more small businesses being unable to operate due to the rising cost of insuring employees.
- Taxes. This is a two-fold issue. Many small business owners, whether they are sole proprietors or partners, claim the income from their business on their personal 1040 form causing them to be taxed at a higher rate than corporate taxes. According to a report on CNBC the survival of the fiscal cliff was overshadowed by the sharp decrease in the Section 179 deduction. The deduction went from $125,000 in 2012 to a mere $25,000 this year. This severely hinders business owners in their start-up purchases.
- Skilled worker shortage. The jobs of 2013 require many skills that today’s workforce are not adequately trained to do. Due to the growing technology field, many workers who are in need of jobs have not caught up to the jobs of today.
- Unreasonable government regulations. From the Health Department to Weights and Measures, like it or not, there are many regulations and standards the government has put in place to protect the consumer. While it may be somewhat easier for large corporations to adhere to these stringent rules, a small business owner might find it difficult and expensive to follow everything in order to stay in compliance with federal and state regulations.
- Cost of natural gas, propane, fuel, etc. The rising costs of heating buildings and running equipment has small business owners worried. If the cost of doing business grows to outweigh the profits earned then unfortunately it makes good business sense to shut the doors.
Business ownership can be exciting and rewarding if the tools available are utilized. Research and planning are the keys to turning your dream into a household name.