If you are considering becoming an entrepreneur, you need to understand California business law before you start working on your winning business plan.
After all, failing to comply with business and tax laws is a common reason that promising businesses fail.
You need to get off on the right foot by understanding the business law basics that apply to any fledgling company or venture.
5 Key California Business Law Tips
The following are five key California business law tips that should get you off to a good start on your new business.
- Start with a business plan. Just a good idea is not enough to make a business successful. You need to have a detailed business plan that accounts for your finances, as well as the regulatory issues you may encounter. Far too many people wait too long to look up California laws that affect their business until they’ve already made costly mistakes. A business plan that includes a well-defined game plan for regulatory compliance avoids major and costly pitfalls.
- Incorporate early and choose your business entity carefully. Before you sign a lease or a contract, you need to incorporate your business. In California, corporations, LLCs, and partnerships all provide business owners good ways to limit their personal liability and provide structure to business operations. Just choose your business entity carefully. These can be difficult to change later, so you need to carefully consider which formation best meets your current needs and allows for future growth. An experienced incorporation lawyer can help you weigh the pros and cons of each option.
- Get the right California business permits. Unless you have the right permits, your business has no right to operate in California. Make sure to carefully research all the permits that may be needed in your business model, and discuss any questions with an expert. You need to apply for the permits before you open or risk big fines.
- Plan carefully for your federal and California taxes. Taxes remain a huge hurdle for small businesses, but a strategic tax plan can limit your tax responsibility and protect you against audits. A California tax attorney can help you figure out what you owe and how to stay compliant.
- Find a California business lawyer you trust. As you can see, every small business needs legal expertise to succeed, even from the earliest stages. Find an experienced California business lawyer you trust early, so you don’t miss any legal risks or waste opportunities for growth. Not only will you be able to protect your business and set it up for success, but you’ll also have a trusted partner ready to fight for you when legal issues crop up in the future. A little prevention goes a long way– and saves you money.
With these five tips in mind, you’re a long way towards making your new business a success.
Still looking for a lawyer you trust? Talk to the attorneys at MAJ Law.
Our California business lawyers have years of diverse experience in the business world, which means we bring a level of expertise to our advice that sets you up for success on day one.
To learn more, please call Merrill, Arnone & Jones (MAJ Law.