Why
all the fuss?
To most entrepreneurs,
the endless stream of regulations and red tape appears to be generated
from bureaucrats and politicians who don't understand or even like
business. Whether or not you agree with them, regulations were established
to serve two basic purposes: 1) the tracking and collecting of taxes,
and 2) the protection of society.
Taxation
Federal, state
and local taxation of businesses constitutes most of the government's
regulations which affect business. Income tax, sales tax and social
entitlement taxes provide for the government and social programs which
are a part of our system.
Protection
Employee protection
from discrimination, unemployment and injury is another purpose of
regulation which affect business. Consumer protection from faulty
or unsafe products, and even the protection of your business idea,
can result in paperwork and red tape. Licensing some forms of business
provides standards for products and services delivered. Patents and
trademarks protect ideas and products from being copied and used without
permission.
Financing
programs and banks have regulations which help to protect the assets
of those investing in business.
The debate
about the effectiveness of many regulations can be endless. It is
important to understand that regulations were not designed to irritate
or punish the honest and ethical entrepreneur even if the numerous
forms make you to feel that way. Beneath the pile of paperwork there
lies a purpose.
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