ABA Family Legal Guide

Forming and Operating a Small Business

Starting a Business

Rules, Regulations, Licenses, and Permits

Does the size of the business affect how it is regulated?

It can. The size of the business often affects the extent of the regulations. The laws of many states, for example, exempt businesses with fewer than four or five employees from having to carry workers' compensation insurance covering injuries to employees. (Even if your business is exempt, however, you might still decide to carry workers' compensation insurance because of the protection it will give both you and your employees in the event one of your employees is injured while working in the business.) A number of other workplace laws kick in once you employ a certain number of workers.