The great state of Tennessee is one of the oldest and most storied parts of the United States, and it shows in their state capital of Nashville. Known as one of the hearts of country music, Nashville is the largest city in the state and is growing in terms of popularity for tourists and new residents. One of the reasons why Nashville is growing is because of new residents who are opening up business in the city. While the city is a wonderful place to set up business, new residents would do wise to brush up on their legal knowledge before opening a business in the city.
Here are some laws and regulations to be mindful of when doing business in Nashville.
Tax Fraud or Evasion
Much like every place in the U.S., tax fraud/evasion is a serious felony crime. Regardless of personal or business, it is important to always be forthcoming with your tax information. The failure to adhere to tax laws as imposed by the Tennessee Department of Revenue can result in serious felony charges. Jail time can be between 1-6 years or fines over $3000. Most of this is more relevant to personal tax filing, but your business is invariably connected to your own revenue so your personal taxes are going to be affected differently when you own a business compared to a non-business owner. Knowing state tax laws is important for opening a business so keep mindful of your responsibilities.
Competitive business practices are enforced by the government to prevent big monopolies or a stranglehold on business revenue. This is good for consumers and business owners as it allows for a competitive environment. If you are new to Nashville, then you are likely going to be starting off at a disadvantage compared to long standing businesses in the city/state. Some of the ways that antitrust laws protect businesses are through the prevention of “price fixing”, preventing underpricing or purposeful destruction of honest competition, and discrimination of pricing by vendors or distributors. Antitrust has federal and state protection, but it is all intended to allow for you and your business to thrive, and protect consumers as well.
Deceptive Trade Practices
False advertising, scams, and unscrupulous business promotions are all acts that are enforced under federal and state consumer protection acts. These business practices help stop counterfeiting of goods, altering goods and selling them as higher valued than they are, promoting false sales, and false warranty claims. These are, again, useful to know before starting a business. While this information is provided by, and enforced through federal acts, it is still good to know how it varies from state to state. Fines can be up to $1000 for violations, and you can face jail time as well. Being an ethical company goes a long way in maintaining a good reputation and avoiding legal consequences that could affect your business licensing or insurance needs.
Legal Support for Business Owners
While not a business law or regulation, it is always useful to know what kind of legal aid or representation you need. The local expertise of Herbert & Lux law firm is one such source for legal advice in a new city, Nashville in this case. For consumer businesses like a clothing shop, or a real estate business that deals in serious financial transactions, a simple visit to their website can help you find the representation you want. With regards to real estate business, good legal representation is a valued resource to have ready in case of a claim or lawsuit against you. Even in the instance that this case is unfounded and it seems like a slam dunk win if brought to court, you do not want to get caught with your pants down and scrambling for a trusted lawyer to protect you and your business interests. Knowing the law is one thing, but having someone who is well-versed in state law that practices in Nashville is a big bonus for you.
Nashville, the city of country music, is growing at a rapid rate. With its picturesque views, wonderful metropolitan amenities but small town charm, and rich history, it is clear why visitors are flocking to see the “Music City.” With this increase of visitors, more and more are setting up shop permanently to enjoy the boom in business. Before you decide to settle down in Nashville, it is important to know what kinds of laws or regulations are in place to protect business owners, consumers, and enforce fair and ethical practices.