Regulation can be a double-edged sword for businesses. On the one hand, it can create a level playing field for all competitors. If you’re all using the same rulebook, it’s harder for someone to get an unfair advantage.

On the other hand, they can create higher bars to entry. This is especially true for small businesses and those attempting to expand into the United States. Worse, you may be tripped up by rules you weren’t even aware of.

Knowledge is power when it comes to regulation. Mind these US regulations to keep your expansion efforts rolling along smoothly.

1. The Federal Tax Code

The tax code is perhaps the biggest set of regulations in the US, and it causes plenty of headaches.

That might be because the code contains thousands of individual regulations. Some of them conflict with each other, so it can be difficult to know what applies to your business.

Business owners and their accounting teams spend countless hours every year on regulations that don’t even apply to them. Many feel it’s better safe than sorry, especially since tax penalties can be hefty.

Work with the experts to ensure you’re following the code and not wasting time on unrelated regulations.

2. The Definition of an Employee

Worker misclassification has become a hot-button topic for state governments and the IRS in recent years. Who counts as an employee? Who is a contractor?

The IRS has issued guidance on the subject, in hopes of helping employers make the right call.

The danger in misclassifying workers is that you may not properly withhold and remit payroll taxes. If you deem an employee a contractor, the IRS might demand back taxes and penalty payments.

Disputes about worker classification could hurt your reputation as an employer. You may find it harder to hire the right people if your reputation takes a blow so early in your American expansion efforts.

3. The Affordable Care Act’s Regulations

The ACA, or Obamacare, changed the way health insurance is offered to Americans. While there are some exceptions for small employers, many businesses have to offer insurance through a marketplace.

The Act didn’t just change your obligations to offer health insurance, though. It also created new rules and regulations about data collection and reporting.

These rules are where international employers are most likely to make a mistake. You know what to offer your employees, but you might not be clear on what reports you must generate or when to send records to the IRS.

Instead of picking through the rules yourself, get a team of experts on your side. They can help you understand exactly what data you need to collect and how to report it. They may even be able to assist you in building and filing those reports.

4. Overtime Rule Updates Made Millions Eligible

US rules about overtime pay were overhauled a few years ago. The updates made millions of employees eligible to collect overtime pay.

The rules also contain certain restrictions on when an employee is eligible, though, so you must pay attention. An employee’s salary is one key factor. So are their job duties, however, with professional, executive, and administrative duties qualifying.

The end result has been to increase employers’ overtime costs, as well as making it more difficult to determine who receives overtime compensation and when.

5. State Licensing Requirements

It’s not always rules at the federal level that trip businesses up. It can also be state requirements, such as licensing regulations.

Each state is allowed to set different criteria for licensing. Some may require licenses in one industry, but not another. Each state can write different qualifications for licensing as well. Be sure to check the regulations in every state you plan to operate in.

Running afoul of the rules can derail even the most carefully planned expansion. Get the experts on your side, so you can avoid penalties and noncompliance.