Business owners have had a hard time registering online, but the new US Federal Communications Commission rules are trying to ease that.
The new rules say that business owners need to be registered with the Federal Trade Commission to be eligible for certain benefits.
“We’ve seen this in other countries,” said John R. Legere, the chairman of the commission’s Bureau of Consumer Protection, in a statement.
“So we’re trying to bring this to the United States.”
The rules, which are effective March 1, apply to businesses, and there’s a lot at stake.
“For a lot of people, this is their livelihood,” said Richard Smith, a professor of law at the University of California, Hastings College of the Law.
“It’s important for them to be able to do that online, to have a financial and business structure that allows them to have the ability to access a financial system.”
Smith added that the rules also provide for “an important opportunity for small business owners to do business with businesses that they might not have otherwise been able to.”
What’s in a name?
The rules state that if a business has more than 50 employees, it must be called a “limited liability company.”
That’s a designation that means that it can be taxed in a different way, but it also gives the owner the ability for it to avoid taxes on income from the company.
It’s unclear how many small businesses will have this designation.
In a statement, the Federal Communications Commissioner, Jessica Rosenworcel, said that the Commission is considering adding more business entities to the list of limited liability companies.
Leger, the FCC commissioner, told CNNMoney that the FCC is “reviewing” the new rules and that the agency is “looking at ways to make sure we are making it easier for small businesses to do what they do best.”
He added that there are still plenty of “significant obstacles” that businesses still face, like the requirement to have financial statements and information on their websites.
“There are many, many hurdles that we face in getting there,” Leger said.
“If we are going to address those barriers, we are looking at ways that we can do it.”
What about tax avoidance?
In a ruling last year, the commission said that it would not impose any tax penalties on businesses that had a limited liability company.
But that decision left a lot open for interpretation.
Leveer has since said that he thinks the new rule will give businesses an advantage in the tax system.
“One of the things that we’re looking at is whether we want to give them the benefit of the doubt that they’re not subject to the IRS, so they’re able to take advantage of the benefits of the rules,” Legeres said.
He also said that “we’re looking to make it easier to get your taxes paid” if you have a limited entity.
“As the rules go into effect, I’m going to start looking at whether there is an incentive for businesses to be very compliant and to pay their taxes,” Levere said.
Smith, the professor, says the new regulations do a great job at keeping the IRS happy.
“These rules make it much easier for companies to get tax benefits and to stay within the rules.
So that will help companies stay within their businesses and be able continue to thrive,” he said.
What happens if I get sick?
The new regulations say that if you are an employee of a business, you can only be injured or killed while doing your work, even if it’s on the premises of that business.
That could be difficult if you’re on a weekend when the building is locked down, but Legerer said that a lot will depend on the severity of the injury.
“I think that a person could still be seriously injured,” he added.
The rules also require businesses to have insurance that covers liability for “personal injury or death.”
If the business is on a state-approved list of medical facilities, there’s also a requirement that they have a list of other certified medical facilities.
Smith said that is a good idea, since many people who are injured will not be able access other health care facilities.
“You don’t want people who can’t get the care that they need to have to take that step,” Smith said.