US questions for small businesses

Liability comes from state entity law, taxation comes from a separate federal election. A sole proprietorship gives no liability shield; an LLC gives the shield and is taxed through the owner unless an election is filed; the S corporation is a tax election, not a separate entity form.

8 Del. C. Chapter 1 · read 2026-08-25

The obligation attaches to entities created by a filing with a state office, unless one of the 23 exemptions applies. Small companies are the target group, because the largest exemption requires more than 20 employees, more than 5 million dollars in receipts and a US office at the same time.

31 U.S.C. § 5336, 31 CFR 1010.380 · read 2026-08-25

Yes, where the activity in that state amounts to doing business there. Registration, tax nexus and sales tax nexus are three separate thresholds, tested state by state, and meeting one does not decide the others.

8 Del. C. Chapter 1 · read 2026-08-25

Four things recur: the federal employer identification number, the state annual report and franchise fee, any local business licence, and the beneficial ownership determination. Each has its own authority and its own due date.

31 U.S.C. § 5336, 31 CFR 1010.380 · read 2026-08-25

Three tests run in parallel: the tax test, the federal wage and hour test, and the state test, which in several states is the stricter three part test. A worker can be a contractor for one and an employee for another.

29 U.S.C. §§ 201 to 219, 29 CFR Parts 500 to 899 · read 2026-08-25

Wage and overtime rules apply from the first employee. Discrimination and disability duties start at 15, age discrimination at 20, family and medical leave at 50 within 75 miles, and layoff notice at 100. State law often starts lower.

29 U.S.C. §§ 201 to 219, 29 CFR Parts 500 to 899 · 42 U.S.C. §§ 2000e to 2000e-17, 29 CFR Parts 1600 to 1614 · 42 U.S.C. §§ 12111 to 12117, 29 CFR Part 1630 · 29 U.S.C. §§ 621 to 634, 29 CFR Part 1625 · 29 U.S.C. §§ 2601 to 2654, 29 CFR Part 825 · 29 U.S.C. §§ 2101 to 2109, 20 CFR Part 639 · read 2026-08-25

In almost every state, yes, and in several the duty starts at the first employee. Texas is the main exception, but an uninsured employer there loses its defences in an injury claim, which is usually the more expensive outcome.

29 U.S.C. §§ 651 to 678, 29 CFR Parts 1904 and 1910 · read 2026-08-25

The federal floor of 7.25 dollars per hour and time and a half beyond 40 hours per week, unless the state or city rate is higher, in which case that rate applies. Exemption from overtime requires the salary level and the duties test together.

29 U.S.C. §§ 201 to 219, 29 CFR Parts 500 to 899 · read 2026-08-25

When the sales into that state cross its economic threshold, measured over a rolling or calendar twelve month period, or when there is physical presence such as inventory, an employee or an office. The threshold is set separately by each state.

U.C.C. Article 2, as enacted state by state · read 2026-08-25

Income without withholding is paid in four estimated instalments during the year, and net earnings from self employment carry the social security and medicare contributions on top of income tax. Underpayment triggers an addition to tax even where the return is filed on time.

Form 1040-ES, Estimated Tax for Individuals · Schedule SE, self-employment tax, 26 U.S.C. § 1401 · 13 CFR Part 121, small business size regulations · read 2026-08-25

Four layers apply at once: the default sales law of the state, the federal prohibition of deceptive practices, the rules for recurring charges, and the conditions for a binding electronic signature. Silence in the contract does not mean absence of terms, it means the default terms apply.

U.C.C. Article 2, as enacted state by state · 15 U.S.C. § 45 · read 2026-08-25

Often not by size alone, but frequently by volume or by sector. The state laws use revenue and consumer count thresholds that many small companies stay below, while health, financial and biometric rules apply with no size threshold at all.

Cal. Civ. Code § 1798.100 et seq. · Va. Code §§ 59.1-575 to 59.1-585 · read 2026-08-25