Federal Business Laws

Businesses must file Form 1099-NEC for each non-employee paid $600 or more during the year. Provide copies to recipients by January 31 and file with the IRS by January 31. Failure to file triggers penalties of $60–$630 per form.

The 8(a) program helps socially and economically disadvantaged small businesses access federal contracts. Certified firms can receive sole-source contracts up to $4.5 million (goods/services) or $7 million (manufacturing). Program participation is limited to 9 years.

Title III of the ADA requires places of public accommodation to be accessible to people with disabilities. New construction must be fully compliant. Existing buildings must remove barriers where readily achievable. Tax credits and deductions are available for compliance costs.

Businesses open to the public must allow service animals (dogs and miniature horses) trained to perform specific tasks for people with disabilities. Staff may only ask two questions: is the animal a service animal, and what task is it trained…

The ADEA protects employees and applicants 40 and older from discrimination based on age. Applies to employers with 20 or more employees. Prohibits discriminatory job postings, hiring, pay, layoffs, and mandatory retirement in most industries.

Title I of the ADA prohibits discrimination against qualified individuals with disabilities by employers with 15 or more employees. Employers must provide reasonable accommodations unless doing so causes undue hardship. Applies to all aspects of employment.

The federal government does not require annual reports from most businesses. Annual reports (or biennial reports) confirming entity information are a state requirement filed with the Secretary of State. Some federal regulated entities have separate SEC or DOL annual filing…

Businesses engaged in the business of dealing, manufacturing, importing, or collecting firearms must obtain a Federal Firearms License from the ATF. Nine FFL types exist. Applications require background check, fee, and compliance with all applicable laws.

Most corporations, LLCs, and similar entities formed or registered in the US must file a Beneficial Ownership Information report with FinCEN identifying individuals who own or control the company. New entities formed in 2024 must file within 90 days; existing…

Bonus depreciation allows an additional first-year depreciation deduction for qualifying property. The rate was 100% through 2022, phasing down to 60% in 2024 and 40% in 2025. Applies to new and used property with a recovery period of 20 years…

Ordinary and necessary business expenses are deductible including rent, utilities, supplies, advertising, professional fees, and business travel. Personal expenses are not deductible. Mixed-use items must be prorated. Keep receipts for all deductions.

Business meals are 50% deductible when directly related to business and not lavish or extravagant. Keep records of the amount, date, place, business purpose, and attendees. Entertainment expenses (sporting events, concerts) are generally not deductible since the 2017 Tax Cuts…

The CAN-SPAM Act sets rules for commercial email. Requirements include: accurate header information, no deceptive subject lines, clear identification as an ad, physical postal address, opt-out mechanism honored within 10 business days. Penalties up to $51,744 per violation.

To import goods into the US, businesses must be established as an Importer of Record with CBP using a CBP bond. Must have an IRS EIN or CBP-assigned importer number. Customs brokers can file entries on your behalf. Goods subject…

Section 1071 of Dodd-Frank requires financial institutions to collect and report data on small business loan applications including demographic information about applicants. Implementation is phased in based on lender volume starting in 2025.

The FLSA restricts employment of minors. Workers under 14 may work only in limited circumstances. Workers 14–15 may work limited hours in non-hazardous jobs. Workers 16–17 may work unlimited hours in non-hazardous occupations. Agriculture rules differ.

COBRA requires employers with 20+ employees to offer continuation of group health coverage to employees and dependents who lose coverage due to qualifying events. Coverage may continue for 18–36 months. Employees may be charged up to 102% of the full…

The Children's Online Privacy Protection Act requires websites and online services directed to children under 13 to obtain verifiable parental consent before collecting personal information. Operators must post privacy policies and allow parents to review and delete children's data.

The DMCA prohibits circumvention of technological protection measures on copyrighted works and provides safe harbor for online service providers from copyright infringement by users if they follow takedown notice procedures. Register a DMCA agent with the Copyright Office.

For-hire carriers transporting regulated commodities in interstate commerce must obtain Operating Authority (MC Number) from FMCSA in addition to a USDOT number. Different authority types exist for brokers, freight forwarders, and carriers.

Commercial motor vehicles in interstate commerce above weight thresholds must register for a USDOT Number through the FMCSA. Required for trucking companies, movers, and bus operators crossing state lines. Registration through the Unified Registration System.

All businesses with employees and most other business entities must obtain a free EIN from the IRS online. The number is issued immediately. Sole proprietors without employees may use their SSN but an EIN is recommended for banking and privacy.

Misclassifying employees as independent contractors is a common and costly error. The DOL uses an economic reality test examining factors including control, investment, profit/loss opportunity, integration, and permanency. The IRS uses a 20-factor common law test.

Businesses that emit air pollutants above threshold levels may need EPA or state air permits under the Clean Air Act. Title V operating permits are required for major sources. Minor source permits are issued by state agencies under EPA oversight.

Businesses that generate hazardous waste must determine their generator status (large, small, or very small), obtain an EPA ID number, and comply with storage, labeling, and disposal requirements under RCRA. Very small generators have reduced requirements.

Construction sites disturbing 1 or more acres must obtain NPDES permit coverage and implement stormwater pollution prevention plans. Industrial facilities in certain sectors require separate industrial stormwater permits. Applications filed with EPA or delegated state agency.

The Equal Pay Act requires equal pay for substantially equal work performed by employees of different sexes in the same establishment. Jobs need not be identical but must require equal skill, effort, and responsibility under similar conditions. File charges with…

ERISA sets minimum standards for private-sector retirement and health benefit plans. Requires plan disclosures, fiduciary standards, and appeal procedures. Employers offering retirement plans must file Form 5500 annually with the DOL and IRS.

Businesses and self-employed individuals must pay estimated taxes quarterly if they expect to owe $1,000 or more. Use Form 1040-ES for individuals or Form 1120-W for corporations. Due dates: April 15, June 15, September 15, January 15.

Federal excise taxes apply to specific goods and activities including fuel, tobacco, alcohol, firearms, tanning services, and air transportation. Businesses that manufacture, sell, or use taxable products or services must register and file excise tax returns.

The EAR controls exports of commercial and dual-use goods, software, and technology. Exporters must determine whether items require an Export Control Classification Number (ECCN) and apply for licenses as required. Administered by BIS within the Dept of Commerce.

The FMLA entitles eligible employees of covered employers to up to 12 weeks of unpaid, job-protected leave per year for qualifying family and medical reasons. Applies to employers with 50+ employees. Employees must have worked 12 months and 1,250 hours.…

Radio and television broadcast stations require FCC licenses. The FCC also licenses amateur radio operators, commercial radio operators, and certain wireless devices. License terms, renewal schedules, and technical requirements vary by service.

Many businesses using two-way radios on licensed frequencies must hold an FCC license under the Universal Licensing System. Industrial/business pool frequencies require a ULS license. GMRS family radio service also requires an FCC license.

Dietary supplement manufacturers must follow Current Good Manufacturing Practices (CGMPs), register their facilities, and report serious adverse events. FDA does not pre-approve supplements before sale. Structure/function claims require notification.

Domestic and foreign food facilities that manufacture, process, pack, or hold food for US consumption must register with the FDA every other year. Registration is free and required under the Food Safety Modernization Act (FSMA). Applies to most food manufacturers…

Food manufacturers must comply with FDA food labeling regulations including Nutrition Facts panels, ingredient lists, allergen declarations, and net quantity statements. Recent updates include updated Nutrition Facts formats and added sugar declarations.

The federal government does not register business names — this is a state function. However your business name must match your EIN registration for tax purposes. DBAs (doing business as) are registered at the state or county level.

Federal contractors and subcontractors must pay a minimum wage of $17.20/hour (2024) to workers on covered contracts. This rate exceeds the general federal minimum wage and is adjusted annually. Applies to new and renewed contracts for services or construction.

Businesses seeking federal contracts must register in the System for Award Management (SAM.gov) and renew annually. Registration is free and required before receiving any federal contract or grant. Obtain a DUNS number (now UEI) before registering.

Copyright protection attaches automatically upon creation of an original work. Federal registration with the US Copyright Office is not required but is necessary to sue for infringement in federal court and to recover statutory damages and attorney fees.

S corporations file Form 1120-S and issue Schedule K-1 to shareholders. Income passes through to shareholders' personal returns. S corp status requires IRS election via Form 2553 and ongoing compliance with shareholder and stock restrictions.

C corporations file Form 1120 and pay corporate income tax at a flat 21% rate on taxable income. Dividends paid to shareholders are also taxable to shareholders, creating potential double taxation. C corps may retain earnings for business growth.

Partnerships file Form 1065 (informational return) and issue Schedule K-1 to each partner. Partners report their share of income on personal returns. Partnerships are pass-through entities and do not pay federal income tax at the entity level.

Sole proprietors report business income and expenses on Schedule C (Form 1040). Net profit is subject to both income tax and self-employment tax. Estimated quarterly tax payments are required if you expect to owe $1,000 or more for the year.

Employers must withhold federal income tax from employee wages based on Form W-4 elections. Deposit withheld taxes via EFTPS on a semi-weekly or monthly schedule based on total tax liability. File Form 941 quarterly to reconcile withholding.

The federal minimum wage is $7.25 per hour for covered nonexempt employees. States and localities may set higher minimums; the employer must pay the higher applicable rate. The Fair Labor Standards Act (FLSA) governs federal minimum wage requirements.

Employers must withhold and remit FICA taxes: 6.2% Social Security and 1.45% Medicare from employee wages, matched by an equal employer contribution. Use Form 941 quarterly. Payments due via EFTPS. Failure to deposit triggers escalating penalties.

Federal trademark registration with the USPTO provides nationwide protection for your brand name, logo, or slogan. Registration is not required but provides significant advantages including the right to use the ® symbol and eligibility to block infringing imports.

Employers pay FUTA tax of 6% on the first $7,000 of each employee's wages. A credit of up to 5.4% is available for timely state unemployment tax payments, reducing the effective rate to 0.6%. File Form 940 annually.

The FCPA prohibits US companies and individuals from bribing foreign government officials to obtain or retain business. Applies to all US persons and companies, regardless of size. Penalties include fines up to $2 million per violation and criminal prosecution.

Employers must verify the identity and work authorization of all employees using Form I-9. Complete within 3 business days of hire. Retain for 3 years from hire date or 1 year after termination, whichever is later. E-Verify participation is mandatory…

When endorsers (including social media influencers) have material connections to advertisers, those connections must be clearly disclosed. Material connections include payment, free products, employment, or family relationships. Updated guidelines effective 2023 address social media specifically.

Products advertised as Made in USA must be all or virtually all made in the US with no or negligible foreign content. Qualified claims (e.g., Made in USA of US and imported parts) are permissible if they accurately describe the…

Non-bank financial institutions must implement comprehensive information security programs under the FTC Safeguards Rule. Requires risk assessments, encryption, access controls, employee training, and incident response plans. Updated rule effective June 2023 added specific technical requirements.

Advertising must be truthful, not misleading, and backed by evidence. The FTC Act prohibits unfair or deceptive acts or practices. Claims that are false or unsubstantiated can result in FTC enforcement action, civil penalties, and consumer redress.

Financial institutions including banks, lenders, and some fintechs must give customers privacy notices explaining information sharing practices and allow customers to opt out of certain sharing. The Safeguards Rule requires written information security programs.

HIPAA requires covered entities (healthcare providers, health plans, clearinghouses) and their business associates to protect individually identifiable health information. Requirements include Privacy Rule, Security Rule, and Breach Notification Rule. Penalties range from $100 to $1.9 million per violation category.

A home office deduction is available if you use part of your home regularly and exclusively for business. Two methods: simplified ($5/sq ft up to 300 sq ft) or regular (actual expenses prorated by office percentage). Available to self-employed; employees…

The HUBZone program gives preference in federal contracting to businesses in Historically Underutilized Business Zones. Certified businesses receive a 10% price evaluation preference in competitive acquisitions. Must be small business with 35% employees in HUBZone.

Investment advisers managing $110 million or more in assets must register with the SEC. Smaller advisers typically register with state securities regulators. Registration requires Form ADV filing, compliance program, and ongoing disclosure obligations.

ITAR controls the export and import of defense-related articles, services, and technical data on the US Munitions List. Registration with the Dept of State Directorate of Defense Trade Controls is required. Non-compliance penalties include criminal charges and debarment.

LLCs are not recognized as a federal tax classification. By default, single-member LLCs are disregarded entities (taxed as sole proprietors), and multi-member LLCs are taxed as partnerships. LLCs may elect to be taxed as S corps or C corps by…

Money services businesses including money transmitters, check cashers, currency exchangers, and prepaid card sellers must register with FinCEN and comply with Bank Secrecy Act requirements including anti-money laundering programs and suspicious activity reporting.

Businesses with losses exceeding income may carry forward NOLs to offset future taxable income. Post-2017 NOLs may be carried forward indefinitely but limited to 80% of taxable income per year. NOL carrybacks were eliminated for most businesses by the Tax…

All employers must report new hires and rehires to their state's new hire registry within 20 days of hire. States transmit data to the National Directory of New Hires. Required information: employee name, address, SSN, hire date, and employer EIN.

The NMTC program attracts investment to low-income communities by offering federal tax credits to investors. Businesses in qualifying census tracts can access below-market-rate financing through CDFIs. Credits equal 39% of investment over 7 years.

OSHA's electrical standards (29 CFR 1910.301-.399) require safe installation and use of electrical equipment, lockout/tagout procedures for energy control, and training for qualified electrical workers. Arc flash hazards require specific PPE and training.

Employers with more than 10 employees must have a written Emergency Action Plan covering evacuation procedures, emergency contacts, and employee duties. Plans must be reviewed with employees upon initial assignment and when updated.

Section 5(a)(1) of the OSH Act requires employers to provide a workplace free from recognized hazards likely to cause death or serious harm. This catch-all provision applies even when no specific OSHA standard addresses the hazard. OSHA may cite employers…

Employers must have a written hazard communication program, maintain Safety Data Sheets for all hazardous chemicals, label containers, and train employees on chemical hazards. Applies to any workplace where employees may be exposed to hazardous chemicals.

Employers must report all work-related fatalities to OSHA within 8 hours. All work-related inpatient hospitalizations, amputations, and losses of an eye must be reported within 24 hours. Report online, by phone (1-800-321-OSHA), or at the nearest OSHA office.

Employers must assess workplace hazards, provide appropriate PPE at no cost to employees, and train workers on PPE use and care. PPE standards exist for eye and face protection (1910.133), head protection (1910.135), foot protection (1910.136), and more.

Employers with 10 or more employees in non-exempt industries must maintain OSHA 300 (injury/illness log), 300A (annual summary), and 301 (incident report) forms. The 300A must be posted February 1–April 30. Certain industries must submit records electronically.

The FLSA requires overtime pay of at least 1.5× the regular rate for hours worked over 40 in a workweek for nonexempt employees. Most hourly workers are nonexempt. Salaried employees earning below $684/week are generally nonexempt and entitled to overtime.

A US patent grants the inventor exclusive rights to make, use, and sell the invention for 20 years (utility patents) or 15 years (design patents). File a provisional application to establish a priority date while developing your product. Non-provisional applications…

Executive Order 11246 prohibits federal contractors from retaliating against employees who discuss or disclose their compensation. This is separate from the NLRA right for most private employees to discuss wages. Many states have broader pay transparency laws.

The PDA prohibits discrimination based on pregnancy, childbirth, or related conditions. Applies to employers with 15+ employees. The Pregnant Workers Fairness Act (2023) additionally requires reasonable accommodations for pregnant employees.

Pass-through business owners may deduct up to 20% of qualified business income. The deduction phases out for specified service trades above income thresholds ($182,050 single / $364,200 married for 2023). Applies to sole proprietors, partnerships, S corps, and LLCs.

To elect S corporation status, file Form 2553 with the IRS. Election must be made by March 15 of the tax year for which it is to be effective (or anytime during the prior year). S corps may have up…

Federal law does not impose a national sales tax; sales tax is state and local. However the Supreme Court ruling in South Dakota v. Wayfair (2018) allows states to require remote sellers to collect sales tax based on economic nexus…

SBA 504 loans provide long-term fixed-rate financing for major fixed assets such as real estate and equipment. Structured with a bank loan (50%), SBA-backed debenture through a Certified Development Company (40%), and borrower contribution (10%). Maximum debenture is $5.5 million.

The SBA 7(a) loan is the SBA's primary lending program for small businesses. Loans up to $5 million can be used for working capital, equipment, real estate, and refinancing debt. SBA guarantees up to 85% of loans under $150,000 and…

The SBA EIDL program provides low-interest loans to small businesses suffering economic injury from declared disasters. Loans up to $2 million at favorable interest rates. Application is made directly through the SBA, not through banks.

SBA Microloans of up to $50,000 are provided through nonprofit intermediary lenders to startups and small businesses. Average loan is $13,000. Funds can be used for working capital, inventory, supplies, and equipment — not for real estate or refinancing.

SBICs are privately owned investment funds licensed by the SBA that use their own capital plus SBA-guaranteed debentures to invest in small businesses. SBICs provide equity and debt financing. Over 300 SBICs are currently licensed.

The Small Business Innovation Research (SBIR) program reserves a portion of federal R&D funding for small businesses. Phase I awards up to $275,000; Phase II up to $1.83 million. Participating agencies include NIH, NSF, DOD, and DOE. Businesses retain IP…

Section 179 allows businesses to deduct the full cost of qualifying equipment and software in the year of purchase rather than depreciating over time. The deduction limit is $1,160,000 (2023) with a phase-out beginning at $2,890,000 in total purchases.

Self-employed individuals pay 15.3% self-employment tax on net earnings (12.4% Social Security + 2.9% Medicare). Half of SE tax is deductible on Form 1040. The Social Security portion only applies to the first $168,600 of net earnings (2024 threshold).

The Small Business Technology Transfer (STTR) program requires small businesses to partner with research institutions for federally funded R&D. Awards structured similarly to SBIR. Participating agencies include NIH, NSF, DOD, DOE, and NASA.

The TCPA restricts telemarketing calls, autodialed calls, prerecorded calls, text messages, and unsolicited faxes. Requires prior express written consent for marketing calls to mobile phones. Do-not-call registry must be honored. Violations carry $500–$1,500 per call.

Employers may pay tipped employees as little as $2.13/hour if tips bring total hourly earnings to at least $7.25. If tips don't make up the difference, the employer must pay the gap. Many states have higher minimum cash wages for…

Title VII of the Civil Rights Act prohibits employment discrimination based on race, color, religion, sex, or national origin. Applies to employers with 15 or more employees. Covers hiring, firing, pay, promotions, and working conditions. File charges with EEOC within…

The Defend Trade Secrets Act (DTSA) allows trade secret owners to file federal civil lawsuits. Trade secrets include formulas, patterns, compilations, programs, devices, methods, techniques, or processes. Protections require reasonable secrecy measures. Courts can issue injunctions and award damages.

Businesses importing, wholesaling, or producing alcohol must obtain a federal basic permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB). Breweries, wineries, and distilleries require a separate Brewer's Notice, Winery Bond, or DSP permit.

A customs bond is required for all commercial imports over $2,500 and for all goods regulated by partner government agencies (FDA, EPA, USDA). Bonds may be continuous (annual, all shipments) or single-entry. Obtained through a surety company.

Federally inspected establishments slaughtering or processing meat and poultry for interstate or foreign commerce must be inspected and granted a grant of inspection by USDA FSIS. Each facility is assigned an inspector. Labels require USDA approval.

Farms and businesses producing, handling, or processing organic products for sale must be certified by a USDA-accredited certifying agent. Annual certification involves an application, inspection, fee, and compliance with National Organic Program (NOP) standards.

Business vehicle expenses can be deducted using the standard mileage rate (67 cents/mile for 2024) or actual expense method. You must keep a mileage log documenting business trips. Mixed personal/business use requires proration. Commuting is not deductible.

Service-disabled veteran-owned and veteran-owned small businesses can pursue set-aside federal contracts. Verify status through the SBA Veteran Small Business Certification (VetCert) program. SDVOSB set-asides require VA or SBA certification.

Employers must provide Form W-2 to each employee by January 31 and file copies with the SSA. W-2 reports wages, tips, and withheld taxes. Penalties apply for late or incorrect W-2s ranging from $60 to $630 per form depending on…

The WOSB Federal Contracting Program allows set-aside contracts for women-owned small businesses in underrepresented industries. Self-certification is available through SBA's certification platform. Economically disadvantaged WOSB firms are eligible for EDWOSB set-asides.

The WOTC is a federal tax credit of up to $9,600 per qualifying new hire from targeted groups including veterans, SNAP recipients, and long-term unemployed. Apply using Form 8850 pre-screening notice within 28 days of hire. Credits reduce federal income…

Workers compensation is primarily state-governed. Federal programs cover federal employees (FECA), longshore workers (LHWCA), and coal miners (Black Lung). Private employers must comply with their state's workers compensation laws and carry required coverage.