Why A Commercial Attorney Is So Important For Small Businesses
As the owner of a home based business, it’s important to understand that managing this type of business entails more than just having the dedication and drive to succeed. Successful business owners know that success begins with setting financial goals, preparing sound business plans, and consistently finding ways to fund their ventures. Part of ensuring you stay on track when beginning a business from home involves laying the groundwork needed to succeed. Here are five crucial business tips to keep in mind when beginning a business from home.
Choose your entity structure wisely. Before you start a business, you need to decide if you’re going to operate as an LLC, S-Corp, Corporation, or solo professional. Each one has different tax implications for your business and startup capital requirements. To make sure you’re getting the best bang for your buck, consider obtaining any necessary licenses to operate your business as soon as possible.
All states have specific laws governing how small businesses must be run. Depending on which state you’re operating in, there will be different regulations. In some instances, you may not even be able to begin operating your business without first receiving a business license or filing all necessary paperwork. It’s important that you become familiar with the ins and outs of your particular state’s regulations, because these can vary greatly between states.
If you’re planning on being primarily self-employed or contracting out tasks, you’ll need to create a general partnership (or business entity) for the business you’re planning to start. The structure of your business should reflect your personal lifestyle as well as the specific tasks you anticipate completing for the business. You should also be prepared to share profits with partners in the small business. This can be done through a profit and loss statement, transfer of partnership shares, and ownership of the business.
One of the challenges faced by many small businesses is being prepared in the current crisis to continue operating as usual while also ensuring the long-term health of the business. A key issue here is complying with all federal, state, and local regulations. If you’re not ready to invest a large amount of time and money into this effort yet, there are a variety of professional services available to help you with this effort, including:
The recent outbreak of the swine flu is being felt now more than ever before throughout the United States. This is a very real concern for many small businesses and home-based business owners because the affects of the pandemic could extend beyond those who contracted it to those who have been affected by it and still aren’t sick. Businesses need to take care of all potential employees, even if they have only been advised of the risk of contracting the disease. The reality is that the majority of small businesses and home-based businesses are not adequately covered and may be in violation of government safety regulations because of this lack of knowledge. As such, it’s important to engage an attorney if your business is still on the hook for these individuals.
Many states are currently experiencing the worst financial disaster since the great depression and this includes New York. In New York City alone, hundreds of thousands of small businesses and home-based business owners have lost their jobs or been laid off due to the recent recession. While a large portion of these positions are not being replaced, there has been a significant increase in business owners engaging in self-employment in order to survive the economic downturn. The business owners are doing this in part by setting up an Internet business whereby they can stay at home and run this business in the comfort of their own home. In this case, the business owner is taking on additional risks and may not necessarily be covered under any existing laws such as employment laws.
It’s important to remember that no business is too small, especially in this current crisis. When times are tough, businesses must increase production and find other ways to earn an income. Many small businesses struggle each year because of either poor financial management, increasing overhead costs or a lack of marketing or promotion. A commercial attorney can help these small businesses get out of the hole quicker than they might otherwise.