As its name implies, regulatory compliance refers to an obligation that Blacksburg, Virginia, businesses have to follow the network of federal, state and local laws and rules that pertain to that business. These rules and regulations can cover even small and mid-sized businesses, and they run the gamete over all sort of topics, such as human resources, safety, recordkeeping and data privacy.
Businesses may even be expected to have in place controls that help the government prevent fraud, money laundering and even dealing with countries against which the United States has imposed economic sanctions.
The first trick to regulatory compliance is to make sure that the leadership in the business understands exactly which laws apply and what they require a business to do or avoid doing in the course of its operations. The answer to this question can vary greatly depending on the size and the type of the business, as well as other factors like whether a business owns or rents their premises.
Once one understands the rules, the second step is to figure out how the business can follow the rules without undue interference to their operations. This is a difficult balancing act, as not following the rules or, worse, ignoring them can lead to trouble with various government agencies, lawsuits and, in extreme cases, criminal penalties.
On the other hand, a consistent pattern of inappropriate caution and hesitation when it comes to following the law can put a damper on a business’s bottom line without there being a good reason to do so.
Figuring out one’s obligations to follow various complicated rules and regulations and then following through on them is an important part in the business formation and planning process, and it is advisable to discuss this issue with an experienced Virginia attorney.