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Small Businesses May Be Hindered by Regulations

Posted on in Business Law

b2ap3_thumbnail_small-business-red-tape-regulations.jpgBeing a small business owner is unlike any job in the world. Challenges like finding the starting funds for a business, hiring good employees, marketing your business, and tax compliance are difficult obstacles to overcome. One such obstacle, which according to some is stifling small businesses across the U.S, is the burden of government regulations. The Code of Federal Regulations has grown to an astounding 175,000 pages. Many of these regulations can become quite problematic for small business owners.

Illegal Cookies Could Land Business Owner in Jail

One example of this regulatory burden has been making life difficult for a small bed and breakfast in Wisconsin. The owner of the B&B serves cookies and other baked treats for her guests. She takes pride in her work, but selling the baked goods could result in the owner being imprisoned for up to six months. There is a rule in Wisconsin law which mandates that if she wants to sell them, her baked goods must come from a commercial kitchen. So, if this B&B owner wishes to sell her cookies, she must find a way to finance an entire commercial kitchen. The cost of installing a kitchen of that magnitude would cost the owner an estimated $50,000.

Red Tape is One of Small Business Owners' Biggest Obstacles

According to a lobbying group called the National Federation of Independent Business, staying compliant with government regulations, rules, and licensures is one of the top three challenges faced by small businesses today. Many business owners claim that the red tape they must work though to be successful in their small business is getting more and more excessive, and the cost of keeping up with regulations is often overwhelming. 

For example, for a cosmetologist to get a license, they must complete 2,000 hours of expensive training. Some people believe that licensing for jobs like this is unnecessary. A nonprofit public interest law firm called the Institute for Justice is fighting back against these types of regulations. A senior attorney for the institute explains, "In the 1950s about 5 percent of the workforce needed a license to work, and they were doctors, lawyers — the people you would expect. Today, that number is over 20 percent — they're florists, interior designers and hair braiders. We are in the midst of an explosion of occupational licensing laws in this country."

Arlington Heights Business Law Attorney

If you are a small business owner, you probably know that it is extremely important for businesses to stay compliant with the law, but may be unsure as to how to do so. The Arlington Heights business law attorneys at A. Traub & Associates have extensive knowledge about governmental regulations, rules, business law, and license requirements. We can help your small business stay compliant. If you would like to speak with a member of our team, call 847-749-4182 for a confidential consultation today.



Illinois State Bar Association DuPage County Bar Association Northwest Suburban Bar Association American Inns of Court DuPage Association of Woman Lawyers National Association of Woman Business Owners Illinois Association Criminal Defense Lawyers DuPage County Criminal Defense Lawyers Association
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