What if I can't afford a lawsuit?

By Jessica Suotmaa 0

Small business owners may encounter hardships that may warrant a lawsuit. Whether it is a contract issue, a supplier issue, or an employee issue, many entrepreneurs seek legal assistance to solve their problem.  Legal advice is one thing, and lawsuits, which are litigated in a court of law, are another.  Most times, we discourage clients from pursuing a lawsuit due to its high costs.  There’s the cost of filing fees, attorney fees, and even jury fees. It doesn’t take long for the costs of a lawsuit to exceed the amount the business owner wishes to retrieve.  In addition to a lawsuit costing too much, it can also take a long time to litigate.  As such, it is wise for small business owners to consider alternatives to a costly lawsuit.

In this article, we introduce alternative dispute resolution (ADR) methods which our experienced business attorneys can still assist.

Negotation

Usually the first step in the process of resolving an issue, negotiation can be initiated without an attorney.  It is the process of meeting with the other party and attempting to reach an agreement as to how to resolve the issue.  Often, when clients come to us to file a lawsuit, they have already tried and failed to negotiate with the other party. However, we have also successfully negotiated on behalf of our clients when we begin the negotiation in the early stages of the disagreement.  Sometimes all it takes is a seasoned negotiator with no emotional attachment to the outcome to reach a low-cost resolution to your business problems.

If you have a business issue that you need to negotiate with the other party, contact one of our business attorneys and find out how we can be of assistance.

Mediation

Mediation has a separate cost that is usually still cheaper than litigation, since it involves a third-party mediator. The mediator assists the parties in reaching an amicable resolution to their problems.  Parties with close ties, relationships they want to preserve, or who genuinely wish to resolve the problem often seek mediation over filing an expensive lawsuit. Some parties take attorneys with them to mediation, and others do not. It is up to you whether you feel comfortable without an attorney present.

The mediator does not make any decisions, but can propose a solution. In the end, it is still up to the parties to decide what the resolution will be.

If you want to resolve an issue without damaging your relationship with the other party, you may want to consider scheduling mediation. An experienced attorney can guide you through the process, and advocate for you at the mediation.

Settlement Conference

Settlement conferences are similar to mediation in that they involve a third-party person who “mediates” and evaluates each side to come to a settlement.  If a case is already in litigation, a judge can require a settlement conference for the parties wherein the judge evaluates each side and recommends a solution. It is still up to the parties to decide whether they can settle outside of court.  When voluntary, a settlement conference is often mediated by a “settlement officer” who reviews each side’s case and makes a recommendation. The goal of a settlement conference is always to settle the case. If the case is already in litigation and no settlement is reached, then it will go to trial.

Neutral Evaluation

A neutral evaluation might be the appropriate solution for parties who disagree on a technicality.  A neutral evaluation is conducted by a neutral third-party, often an expert in the subject matter, who reviews the cases presented by each side and gives his or her opinion on who has a stronger case. The neutral evaluator’s opinion is then used as the foundation for negotiating a resolution.

Arbitration

Many small business owners may have heard of arbitration in a different context. It is often included in employment contracts, vendor contracts, and other company policies. Since arbitration is less costly than litigation, companies often include a “arbitration clause” in contracts to force the other party to arbitrate the issue instead of filing a lawsuit.

The difference between arbitration and the other alternative dispute resolution methods above is that the third-party arbitrator decides on the issue. The arbitrator can be a single person, or an entire panel of people. The arbitration can be “binding”, meaning its resolution is legally enforceable, or “nonbinding”, meaning it’s an optional solution on which the parties can decide. Either way, arbitration takes the form of a hearing, where parties argue their cases and present evidence. Arbitration does not require an attorney, but if you are required to arbitrate your issue, you may want to consider consulting an attorney first.

 

Hopefully this overview gives an idea of what alternatives a small business owner can rely on instead of litigation. Alternative dispute resolution methods can cost money as well, but its costs are often much less than a full-blown lawsuit. If you have further questions or would like discuss which resolution method may apply to your unique situation the best, feel free to contact one of our experienced attorneys today.

How can I safeguard my small business during coronavirus?

By Jessica Suotmaa 0

As the coronavirus pandemic continues to affect small businesses post-lockdown, many small business owners might wonder what can be done to safeguard the future of their business.  With new regulations for reopening during the COVID-19 pandemic (and the recent protests), you might question whether it is enough to continue the status quo.  If you’ve come to determine that business cannot continue as usual, then this article is for you. Here, we list six ways you can safeguard your small business during difficult times.

1. Business Strategy

When the economy is not doing well, it is a good time to review your current and past business strategies.  See how your business has grown, why you made the changes you made, and whether you need to make additional changes. Try to predict what the future will look like as a result of the pandemic, and simulate your business model–does it work? Is your business profitable? Or maybe you need to make adjustments.

Economic downturn can change the outlook of supply and demand, inventory, and prices. Make sure you leave nothing out of your review.

2. Regulations and Compliance

As conditions change, be sure to remain to up-to-date on business regulations, employment regulations, and any other regulations that require compliance.  This is also a good time to review tax compliance, and how you can minimize your end-of-your business taxes.

3. Contractual Obligations

If you have obligations to vendors, suppliers, or clients, ensure that you are able to meet your contractual obligations. Try to negotiate whenever possible if the reason you’re unable to meet requirements is due to circumstances out of your control, e.g. pandemic. If you need assistance with negotiations, feel free to consult a qualified business attorney.

In addition, it’s a good time to evaluate the relationships you have with vendors, suppliers, or clients, and prioritize those of more importance.  Add value to the important relationships by communicating more with them and finding out how they are also affected by current circumstances. You might discover new ways to serve your clients through these discussions.

4. Business Insurance

If you have a current policy, review the relevant insurance policies regarding business interruption and event cancellation.  If you do not have insurance policies for your business, this is a good time to consider adding a good insurance policy to your business arsenal.

5. Commercial Real Estate

If you have a mortgage, or commercial lease, identify and review updated policies. Remember to ask about repercussions on non-payment of rent due to impact on the business.

6. Employment

If your business has employees, be sure to remain up-to-date on current employment policies and benefits. Review your employee handbooks for policies on sick and family leave to ensure compliance with local regulations.

 

While we try to suggest what we can in our articles, we realize that every small business is different.  We welcome you to contact our office to discuss your business’ unique needs during these challenging times.

how do I change my business model?

By Jessica Suotmaa 0

As California businesses have slowly been allowed to reopen, many business owners are not sure if they can continue as they have. Whether it’s due to the new COVID-19 restrictions for their industry, or fears as to whether customers consumption appetite has changed, business owners are now taking time to analyze how the pandemic will continue to affect their business. If you are a business owner concerned with whether you can continue your existing business model under the “new normal”, we can help. Not only are we able to advise you on your business and the possible implications of reopening, but we have also compiled a list of points to consider if you want to change your business model.

1. Legal Entity Type

If you’ve already determined that your current business model will not be sustainable in the long run, and have already decided to change it, then there are legal issues to consider.  The first is whether you can continue to operate the business with its current legal entity type. An experienced business attorney can be of help in making this decision, for if your current legal entity type is unsuitable for your new business model, you will need to establish a new business entity.

If you do need to establish a new business entity, you’ll have to figure out what type of business entity is more suitable than your existing one (and why!) Finally, you’ll have to decide on the relationship between your existing business entity and the new one, for example, it could be a subsidiary, or “sister”, company.

2. Employment Law Compliance

Once you’ve outlined your new business model, the type of legal entity it requires, you’ll need to see whether there are additional labor laws associated with this new model.  If, for example, you’ll be hiring remote workers instead of in-office workers, you may need to consult state and federal employment laws regarding the physical location of your employees. Don’t make drastic changes without verifying your business is in compliance with existing laws.

Be sure to update your human resources department, or employee guides to reflect changes required by your new business model.

During the COVID-19 pandemic, you also want to keep up-to-date with current and upcoming changes to pandemic-related employment laws, such as the Family First Coronavirus Response Act.

3. Contracts

Before making a pivot, see that the change in business model and activities do not break any existing contracts you have that may limit competition (e.g. non-competition clauses in certain industries). Have a contract attorney check your existing contracts before making the final leap.

Finally, before executing new contracts, consider adding provisions that may help with the COVID-19 situation, such as termination clauses.

4. Permits

When planning your business pivot, verify that you have all the permits necessary for the new business model to operate.  Also, consider if there are any regulations that may now affect your business due to the change, such as online marketing restrictions (FTC regulations).

5. Data Privacy

If your business is going online for the first time, it might be important to familiarize with data privacy laws, especially regarding the safety of your website and regulations regarding personal identifiable information (PII).

6. Intellectual Property

Generally there are two types of intellectual property issues a new business model may trigger, the first is licensing for music or other property used in media (e.g. podcasts, videos), and the second is trademarks for your new logo, etc. Read on for why you need to protect your intellectual property. 

 

As we gradually transition from quarantine to the new post-coronavirus “normal”, we all have to consider new ways of doing things for our small businesses. If we, at Lum Law Group, can be of any assistance in helping your business survive the pandemic, please contact us and we would be happy to be of assistance.

employer responsibilities during covid-19

By Jessica Suotmaa 0

While some employers are subjected to the higher Aerosol Transmissible Diseases (ATD) Standard (California Code of Regulations, title 8, section 5199) in order to protect employees from airborne infectious diseases such as COVID-19, most employers are not. If you are not in healthcare, funeral, or drug-related industries, you will not be subjected to the ATD Occupational Safety and Health Administration (OSHA) standard. You can find the list of workplaces subject to the ATD standard here.

Please note that even if your business is not subject to the high standards of ATD, it is still required to follow the latest COVID-19 OSHA guidance for workplace safety. We all know we should wash our hands (yes, with soap), but this post will highlight some of the other key points small business owners and employers must follow in order to safely reopen during the pandemic.

1. Provide Washing Facilities

Every workplace should have “washing facilities”, or a place for workers to wash their hands.  This could be a sink, or anywhere with water, soap (“washing agent”), and towels for drying.

See Title 8 sections 1527, 3366, 3457 and 8397.4

2. Disinfect and Clean Routinely

Perhaps your workplace already has cough and sneeze policies and a robust cleaning schedule, but in times of a pandemic, you should set higher standards for your workplace cleanliness.  You can do so by:

  • Reducing shared workplace areas
  • If employees must share certain equipment or space, provide disinfectant sprays or wipes so that they can clean before and after each use
  • Provide face coverings or encourage employees to use their own while in the workplace
  • Provide disposable paper towels/tissues for employees
  • Provide trash cans in convenient locations
  • Provide hand-sanitizer for employee use
  • Purchase EPA-approved disinfectants and cleaning supplies
  • Re-train cleaning staff to follow cleaning supply manufacturer’s guidelines for usage
  • Provide necessary Personal Protective Equipment (PPE), such as face masks, gloves, disinfectant wipes for employees to use freely

3. Establish Sick Leave Policies

Employers should establish sick leave policies for all employees for their safety.  This does not just include allowing for sick leave, paying for sick leave, or establishing how an employee qualifies for sick leave, but also includes the reasons why an employee should not come to work. Here’s a list of what every employer should do during the coronavirus pandemic:

  • Require sick employees to remain home.
  • Send sick employees home if they exhibit any of the following symptoms:
    • cough
    • fever
    • difficulty breathing
    • chills
    • muscle pain
    • headache
    • sore throat
    • or recent loss of taste or smell.
  • Prevent sick employees from returning to work until:
    • they have been fever-free for at least three days without taking fever reducer medication and
    • they have been symptom-free for at least ten days since their first symptoms appeared
  • Provide employees with paid sick leave if required (Families First Coronavirus Response Act)

If one of your employees is tested positive for COVID-19, be sure to keep the information private per the Americans with Disabilities Act (ADA).

4. Create a Workplace Injury and Illness Protection Program (IIPP)

California employers are required to create and set up a program to protect employees from injury and illness, which includes infectious diseases such as COVID-19.  As an employer, you must follow the following steps:

  1. Determine if your workplace could be a COVID-19 hazard. For example, if there has been exposure to someone who has tested positive for the virus, or if it’s a high-traffic area, etc.
  2. Evaluate the risk of exposure to COVID-19
  3. Prevent infection in the place by:
    1. creating physical barriers to control the spread of virus, such as the plastic screens at checkout counters,
    2. social distancing,
    3. providing appropriate personal protective equipment (PPE), hygiene, and cleaning supplies.
  4. If concerned, practice infection control measures provided by the Centers for Disease Control and Prevention (CDC):

See Title 8 section 3203

5. Encourage Social Distancing

By now, we are all familiar with the term: “social distancing” where we are encouraged to stay several feet away from any other person at all times.  As an employer, this could mean several things for you:

6. Provide Employee Training

As an employer, you should train your employees so that they are aware of how to protect themselves from COVID-19 both in the workplace and outside of it. By teaching your employees how to protect themselves, you will ultimately protect all of your workforce, you, and your customers.

Be sure all your employees are aware of the following:

 

For additional guidance on how to provide a safe workplace for your employees during this COVID-19 pandemic, please visit the California website. Your specific industry might require additional steps not listed in this article. The website is also a good resource for downloadable documents to print and post for your employees’ education.

If you have questions regarding employer liability, or even a wishlist of topics we could cover, please comment below or send us a message.

when small business owners need to lawyer up

By Jessica Suotmaa 0

If you’re thinking about starting a small business, or perhaps you’re already the owner of one, hiring an attorney may not have crossed your mind. Perhaps you’re worried about the stereotype of how expensive attorneys can be, or maybe you’re a capable do-it-yourself person who doesn’t need help. Either way, this article will give a brief introduction on when and why small business owners may want to hire a lawyer.

1. Forming a Company

When thinking about forming a company, the best time to consult an attorney is before you register it. You don’t necessarily need a lawyer to fill out and file the paperwork for you, but for the tax and legal purposes, you would want to consult an attorney about which type of company structure will fit your business best.  An experienced attorney can tell you whether that non-profit organization designation is possible. A lawyer can help you review your business plan to determine whether you should form a limited liability company or corporation.  If you’re not sure what the differences and legal consequences for the different types of entities are, you may want to ask a lawyer.

We can tell you if that partnership should be a limited liability partnership. We can also tell you if you should continue with your sole proprietorship, or if you should file for s-corporation status.  Having an experienced attorney assess your business plan before you start your business can save you many headaches later down the road.

2. Drafting Contracts

Written contracts clarify what you’re agreeing on and with whom. Since contracts are legally binding, they offer guarantees to small business owners that will prevent future losses. As such, every small business owner should either hire an attorney to draft clear and concise contracts for their business partners, vendors, employees etc.

At the very least, every small business owner should hire an attorney to review a contract that has been offered to you.  There are many benefits to hiring an attorney to review your contract.  Firstly, it is usually less costly than hiring an attorney to draft a contract on your behalf as it often takes less time.  Secondly, the attorney may come up with questions that you will need to ask the other party, thus improving your contract.  Finally, the attorney can make additions or point out weaknesses that you may or may not want to address with the other party.

3. Handling Employee Issues

Assuming you heeded our contract advice and properly executed contracts for any and all business partners and employees, you shouldn’t have too many issues regarding termination. However, there could still be issues regarding payments, unlawful termination, discrimination, or harassment.  Consulting with an attorney can prevent further losses, and ensure that you are aware of the current employee rights.

4. Licensing

No matter the size of your business, you must follow government licensing regulations.  Depending on your location and industry, you may have to adhere to city, county, state, or federal regulations. By consulting an attorney experienced in your industry and located in your area, you can be prepare in advance for the paperwork and fee requirements for your business license.

5. Registering Intellectual Property

If your business has a special name or logo, you may want to register a trademark to protect your brand. If you don’t, you may find that similar business open with similar names or familiar colors and logos as yours, stealing your customers. Or perhaps you are creative and have creations that need to copyright protection. A good intellectual property attorney will assess your business plan, goods, and branding to determine what is the best strategy for protecting your intellectual property, brand, and business.

 

The issues listed above are just the top five issues on which small business owners should consult an attorney. You may have an issue that has not been listed, or a question you’re not sure needs an attorney. Feel free to comment below, or contact one of our experienced business attorneys for further assistance.

Can I get a covid-19 stimulus check if I'm undocumented?

By Jessica Suotmaa 0

On April 15, 2020, California Governor Newsom announced that undocumented adult immigrants will receive a $500 stimulus cash payment from the State. As previously discussed, many undocumented immigrants do not qualify for the federal CARES ACT stimulus check.  Undocumented immigrants also do not qualify for unemployment insurance benefits.  As a result, California will distribute $500 dollar stimulus checks, up to $1000 per household, to undocumented Californian immigrants.  This money will come from the state’s 75 million dollar disaster fund and supplemented by a 50 million dollar donation by philanthropists for a total of 125 million dollars.

The announcement states that the fund will begin accepting applications in May 2020, and approximately 150,000 undocumented immigrants will receive the cash payment.

It was not clear to us exactly how these 500 dollar cash payments will be distributed, but with some digging, we found a list of “relief funds” for undocumented immigrants. The list is in English, Spanish, and Chinese.  According to the list, there are national relief funds and local relief funds available to undocumented immigrants who meet the listed requirements. We are not sure at this time if these funds are one of the avenues for the California relief payments, but they may be worth checking out regardless.

If you have questions about California’s guidelines and regulations on shelter-in-place, essential work, staying safe, etc., you can refer to California’s Immigrant Guide.  The guide includes information on the public charge determination, which has been translated into several languages, including Chinese, Korean, and Tagalog.

Some key notes we identified from the California immigration guide include:

If you need COVID-19 testing but don’t have private health insurance…

“Even if you are undocumented and/or don’t have insurance, you can get necessary testing and treatment for COVID-19 through Medi-Cal emergency services, even at a local clinic.”

If you have Medi-Cal, but aren’t sure what’s covered…

“Emergency services are free for enrolled Medi-Cal beneficiaries which includes COVID-19 testing, evaluation and treatment services.”

If you don’t qualify for unemployment insurance benefits because you’re undocumented but you tested positive for COVID-19, are caring for a family member who is sick, and so forth…

“Undocumented immigrants may be eligible for State Disability Insurance (SDI) and Paid Family Leave.”

If you cannot afford to pay rent due to the COVID-19 pandemic…

“Under the Executive Order, you are still required to eventually make up rental payments you miss, but you will not be evicted for nonpayment of rent until at least June.

In order to qualify for the eviction protections, you must notify your landlord in writing within 7 days of your nonpayment that you cannot pay all or part of your rent due to COVID-19. For example, if your rent is due April 1st, then by April 8th.”

How has COVID-19 affected U.S. immigration? Are you a small business owner with questions on how to manage it during the pandemic? Do you have other questions regarding COVID-19 and how we can assist you? Contact us today. We’re here to help.

COVID-19 Relief for Small Business Owners and Employers

By Jessica Suotmaa 0

With the current COVID-19 pandemic, the closing of non-essential businesses, and the fears for an upcoming recession, many small business owners are either suffering, or preparing to suffer. We, at Lum Law Group, are in the same boat. We are also a family-owned small business with few employees that, for the most part, caters to our local community.  While we are still answering calls and helping existing and potential clients, we share the same concerns as our clients, our employees, and our fellow small business owners.

In this article, we have outlined relief and resources that may assist small business owners during these difficult times. We would like to remind you that you can call us if you need assistance with vendors, landlords, or any other COVID-19 related issue. We are here to help!

Payroll: Paycheck Protection Program

Part of the CARES Act was to fund the Small Business Administration (SBA) to provide assistance to small business to continue to make payroll.  The SBA’s Paycheck Protection Program (PPP) allows businesses with fewer than 500 employees to borrow money specifically for payroll.  Less than twenty five percent of the borrowed amount can be used for other things, such as mortgage interest, rent, and utilities. You can borrow enough to cover an eight week period, which must be used within eight weeks after receiving the funds.  Loan repayments are deferred for six months.

While applications opened today (April 3, 2020), SBA announced that self-employed individuals and independent contractors will not be able to apply until April 10, 2020.

Payroll: Defer Paying Social Security

If you are self-employed, or have employees, you can defer making the social security portion of employment taxes for the time being.  This would mean a reduction of 6.2 percent tax paid on wages. The deferral allows you to pay the deferred amount over a two and a half year period, where half of it would have to be paid by December 31, 2021 and the second half by December 31, 2022.

Payroll: Keep Paying Your Employees

As part of the new economic stimulus plan, if you can prove that your business has lost fifty percent or more in profits due to coronavirus, your business can qualify for a “prize” for retaining your employees. Even if your business is closed, if you keep your employees on payroll, you can qualify for up to fifty percent of your employee’s wages.  This “prize” for keeping payroll not only helps your employees who may not be able to work from home, or may not have much to do.

As an employer, you will receive the prize in the form of a tax credit on your business tax return.

Note: Businesses that receive a SBA loan will not qualify for this tax credit.

Tax Deduction: Restaurant, Retail, Hotel

If you are a restaurant, hotel, or retail store owner, you can prepare and file amended tax returns to deduct the cost of property improvements. This deduction was supposed to be part of the 2017 tax overhaul anyway.

 

As you can tell, most of the available relief is for employers.  If you have questions about California unemployment benefits for independent contractors and self-employed individuals, please visit the EDD website. If you would like to learn more about the “stimulus check”, please read our post here.  If you have issues with vendors, landlords, business partners, etc. please contact us for how we can help you. Together, we can get through the crisis!

Coronavirus: Can I be fired?

By Jessica Suotmaa 0

Due to the coronavirus pandemic, companies have lost business, sales have gone down, and profits have plummeted. As a result, many are cutting costs by reducing work hours, or even their workforce. Here in Southern California, we have encountered questions from you regarding job loss, such as:

“Can my company let me go for no reason?”
“Can I be fired because of the coronavirus / COVID-19?”
“Can I fight back if my company lays me off for no reason?”

Also, on March 17th, 2020, Governor Gavin Newsom signed an executive order regarding this issue. If you’re working in California, please continue reading as we explain the ordinary situation, and the current situation.

California is “at will”

Unless you have an employment contract specifying employment terms, such as the length of employment, or specific dates of employment, you are subject to the “at will” employment terms in California state.  What “at will” means is that you can be let go at any time, for any reason–or alternatively, no reason at all, at the employer’s will.

Given this, the short answer to all of the questions above is: “yes”. You can be let go, for no reason at all, by your employer due to the coronavirus.

If you do have an employment contract, be sure to see what the terms state regarding breach of contract or early termination.

What is Cal-WARN Act?

If you’re an employer, the executive order signed on March 17th, 2020 will help you.  The order modifies the existing Cal-WARN act to cover COVID-19 (coronavirus).  California Worker’s Adjustment and Retraining Notification (Cal-WARN) originally applies to California employers with more than 75 employees, including part-timers.  Under the act, qualified employers must provide 60-day notice to its employees prior to closing the business operations at the employee’s location, relocating operations to a location more than 100 miles away, or terminating more than 50 employees in a 30-day period.

However, the Cal-WARN act does not cover physical calamities or acts of war, which could be an exception the COVID-19 pandemic falls under.

Violation of the Cal-WARN Act could entitle employees to back pay and cash equivalent to benefits for up to a 60-days or one half of the employee’s employment period (whichever is shorter).

Relief for Employers

The executive order signed by Governor Newsom went into effect on March 4th, 2020, when California officially declared a state of emergency.  Most notably, the order suspends the 60-day notification requirement to employers who meet certain requirements, such as:

  • Prior to termination, relocation, or mass layoffs, the employer notifies affected employees, Employment Development Department (EDD), the local workforce investment board, and the chief elected official of each city and county government.
  • If the employer cannot give 60-day notice, it is required to provide notice as soon as possible, with a brief explanation as to why it cannot adhere to the 60-day requirement.
  • The employer is terminating, relocating, or laying off employees due to circumstances caused by COVID-19, that were not reasonably foreseeable.
  • If the employer is providing notice after March 17, 2020, the employer must include the following statement in the notice:

“If you have lost your job or been laid off temporarily, you may be eligible for Unemployment Insurance (UI). More information on UY and other resources available for workers is available at labor.ca.gov/coronavirus2019.“

If you have any questions regarding unlawful termination, how to handle mass layoffs, or just questions regarding the legal aspects of covid-19 and how it may affect your employment or employees, contact us today!

 

 

 

What Parts of Your Business Should You Evaluate Before Expanding Overseas?

By Lisa 0

After becoming successful, many companies to expand their business operations globally. In the US, most entrepreneurs fail within the first five years, so if your business is still standing—congratulations!  As a result, you might think because your business is successful here in America that you can easily spread your business out to the rest of the world. However, expanding into other countries just doesn’t happen overnight, and having success in America doesn’t always translate into successful foreign operations. There’s much to be examined in yours business before you should make the big jump. Here are a few things you can evaluate before expanding your business overseas.

Your Product

Don’t assume that because your product sells in America that it will universally sell everywhere. Do your research beforehand. Just about every global company tailors their products to different markets. For example, Samsung has what’s called “Made For India” which manufactures and sells products to suit average lifestyles in India. You have to give customers what they want. Read up on the culture, laws and regulations of the country you plan to expand into. From there, tailor your product and your marketing to the specifications needed to succeed in that country.

Your Leadership Team

Believe it or not, many businesses have business teams that aren’t very productive. While this doesn’t seem to stifle their success, having a strong leadership team can be the driving force to continued success if utilized properly.

Any well-functioning leadership team should be able to set the path going forward. While each team member has different functions they oversee, they should be able to come together and overcome any problems within the company. If they have trouble with these tasks, consider team coaching to develop your leadership team’s skills. Evaluate your leadership team on how they accomplish these roles and make changes if needed. Evaluating and investing in your leadership team is important, as the leaders’ decisions affect the rest of the company.

Your Employees

Don’t forget about your employees. Your employees are likely the reason as to why you’re in the position to expand your business in the first place. Employees will need to be notified about the international expansion as well as trained on any new tasks they will need to do in the future.

These are just a few of many things you’ll need to look at before going through with your overseas expansion. Again, this doesn’t happen overnight. Expanding your business overseas can be a successful venture if planned properly. Take the time to carefully examine the current state of your business and make needed adjustments before making the big jump.

 

Here’s another article you might like: Outsourcing, Offshore And Overseas: What Do I Need To Know?

AB 5 independent contractor

By Lum Law Group 0

 

AB 5 and the Independent Contractor

In December 2019, the Governor of California, Gavin Newsom, signed into law Assembly Bill 5, which drastically changes how most businesses classify independent contractors.  A worker is more likely to be classified as an employee instead of an independent contractor. Although the impetus for this law was to give more employment benefits to ride sharing, delivery, and “gig economy” workers, its impact is much more far reaching.  The law codifies a California Supreme Court decision, Dynamex Operations West v. Superior Court of Los Angeles (Dynamex) and alters the application of a 20 year old law.

In essence, there is now a 3-part test to determine if a worker is an employee or an independent contractor (the “ABC test”):  

(A) The hiring entity does not control or direct the performance of work;

(B) The person performs work outside the usual course of the hiring entity’s business; and

(C) The person is customarily engaged in an independently established trade, occupation or business.

If all these 3 conditions are met, a worker may be classified as an independent contractor.  If not, the worker is an employee. Some exceptions have been made to the application of this new law, mostly for licensed professionals, such as doctors, lawyers, real estate professionals, broker dealers, etc.  As stated, although this was intended to target the above mentioned workers, many businesses that have hired independent contractors to do part time work, such as bookkeepers, free lance journalists, etc., would be forced to classify these individuals as employees even though they do not solely work for the business.  The law is new and vague, and there are already legal challenges being raised and amendments and other changes being proposed, but for now employers, especially small businesses, must be even more careful of their hiring practices while the law is interpreted and its parameters are (hopefully) defined in more detail.

See The Daily Recorder – https://www.law.com/therecorder/2019/09/19/ab-5-changing-the-landscape-for-independent-contractor-analysis/?slreturn=20200109121407

Does your business act like a business?

By Jessica Suotmaa 0

Don’t say we didn’t warn you, but the implementation of new tax regulations may cause many business owners to lose their business deductions when their “business” is reduced to a mere hobby.  Budding entrepreneurs need to ensure their business is set up correctly. Meanwhile, existing business owners need take a magnifying glass to their business to ensure their businesses are both set up and run like a business. In this article we’ll outline the basics of what it means to own a business that’s correctly set up as a business, as well as what it means to act like a business.

1. Form a business entity

It’s more challenging to prove your small business isn’t a hobby if it’s not registered as it’s own entity.  Hire a professional to determine which business type would be most suitable before registering with your local government.

2. Create a professional website

Whatever your business may be, a professional website will help validate it for your customers.

3. Open a separate business account

Keeping your business and personal expenses separate will simplify your year-end bookkeeping—especially come tax time. Open a business bank account and credit line to ensure they’re separate.

4. Open a business email at a professional domain

Many of our clients already have separate business emails but at the same email server as their personal email.  To solidify your professional business image, and to ensure it’s security, open a new email account with a professional domain, such as your own company’s dot com.

5. Draft written contracts

Don’t allow your clients to weasel out of contracts or make last minute changes. Hold them accountable by drafting written contracts and requiring your clients to sign them prior to beginning work.

6. Provide invoices

After you’ve completed work, always invoice your clients, and ensure that the invoices match incoming payments.

7. Advertise your product or services

Even if you rely on word-of-mouth to obtain new customers, try listing your business with a business registry if advertising is out of your budget.  The purpose is to prove that your running your business with the intention making a profit, and advertising your product or services plays a large part in it.

In order to “act like a business” and deduct relates business expenses on your taxes, even the smallest side business must follow the above rules.  If you’re still a freelancer thinking about expanding to a full-fledged business, or want to be treated (taxes) as a business, then start right from the beginning and follow our tips to avoid issues years down the line.

Business Safety Requirements You Shouldn’t Ignore

By Lisa 0

As a business owner, you understand the plethora of risks that are placed on not only yourself but your company as well. The most important of areas to have a risk assessment conducted on is on your safety requirements. A common mistake made within a variety of “low risk” jobs such as you would find in an office building is that many crucial safety requirements are not followed. This isn’t because they are not considered, but because owners believe they don’t apply to their industry. Therefore, the following list includes a few general business safety requirements you shouldn’t ignore.

Insurance

Although most business leaders understand the importance of having insurance, they might not be thinking about the right ones. A company, whether or not it is required by law, should have the right insurance in place, according to NFIB. One of the most important ones to have is workers’ compensation insurance. This insurance can help you greatly as it provides your employees with enough resources to sustain them after a workplace injury. This also reflects well on yourself and the courts if they decide to sue your company.

PPE

PPE or Personal protective equipment are pieces of equipment that are used to protect employees from hazardous obstacles and or illnesses. One of the most common injuries seen within an office building is back injuries from attempting to lift heavy boxes. If your employees are constantly needing to reach for heavy boxes and carry them around, you definitely need to provide them with the right equipment, such as an industrial back belt. This also includes the use of signs warning of danger within your various rooms. According to Creative Safety Supply, as the employer, you are responsible for providing PPE, making sure that it is accessible, and sufficient, and that employees know how to use it.

Distractions

Business leaders within the construction business can attest to the serious issue of worksite distractions. Accidents on the worksite can often be traced back to a lack of communication. However, when investigated a little further, it is not a lack of communication that was the issue but an introduction of distraction. This comes in the form of listening to music while working, fatigue, and even using cell phones for other activities other than work. You, as their boss, must make sure that these distractions are not being created within your workplace.

Running a business is no easy task. You are constantly presented with issue after issue. However, safety must always be your first priority. This is to protect not only yourself but your employees and customers as well. Simply follow some of the tips laid out above to begin implementing proper safety requirements into your business.

For all your business law-related needs, contact us so we can assist you!

Event Space for Your Small Business

By Lisa 0

Hosting events for your small business is a great way to bring your team together, gain exposure in the community, and network with industry partners. Whether you’re planning a training, networking, or some other type of special event, it’s vital that you make the most of it. To help you plan the perfect event, here’s a list of the do’s and don’ts to keep in mind.

Don’t Underestimate Planning Time

The last thing you want to do is to wait too long to start the planning process. Most business events take several months to plan. Create a planning timeline right from the start to keep you on track.

Do Set Clear Objectives

Before you even start the planning process, you must have a clear set of objectives and goals in place. Put these goals into writing to ensure everyone on the planning committee is working towards the same objectives.

Don’t Assume Anything

When it comes to planning a business event, don’t assume anything. Instead, get everything in writing, including vendor contracts, RSVPs, and committee meeting notes. This step is especially important for last-minute changes and late registrations.

Do Plan Thoroughly

It’s critical that you take the time to plan every single detail of your event. Meeting room experts recommend that you have your entire event planned at least two months before the big day. This two-month period gives you enough time to deal with any potential issues and make changes if necessary.

Don’t Skip Marketing

To make the most of your event, you must invest in marketing. Create a social and email marketing campaign that explains why someone should attend your event and how it will help them.

Do Develop a Contingency Plan

Chances are that at least one thing will not go as planned on event day. It’s a good idea to always have a contingency plan in place that you can fall back on if the need arises.

Don’t Forget Follow-Up

Many business leaders forget one of the most important steps in planning an event – to follow-up. Always take the time to follow up with attendees. Ask them if they enjoyed the event, what could have been better, and what other events they would like to see in the future.

Do Set a Budget Early

Planning a business event can become extremely expensive if you are not careful. Take the time to set a clear budget for your event early in the planning process. You can make adjustments can later if necessary, but a preliminary budget should be set right away. 

Hosting an event for your small business can be a great opportunity. The important thing is to give yourself plenty of time to organize your event and use that time wisely. We stand ready to help you grow and protect your small business for maximum improvement.

How Data Analysis Can Improve Your Small Business

By Jessica Suotmaa 0

If the term “data analysis” seems frighteningly out of reach for your small business, let us clear up how it can be of help. We are also a small business and often find ourselves dealing with an overwhelming amount of data, or options, and we feel like it’s getting out of hand. So data analysis has been sitting on our desk, under a pile, waiting to be tackled.

It’s tempting to just hand over all the data to a professional or hire a service, but that doesn’t always go well. When we tried it, we were asked more questions than we could answer. We were given many demands we thought they would handle, and in the end we felt conned; if we had known the amount of time and effort we would put into it, we would’ve just done it internally. Of course then we did exactly that. Here’s how we looked at incorporating data analysis in our small business.

What can Data Analysis do for me?
The reason we need data analysis in our small businesses is so we can make better, more informed decisions. The purpose of collecting data is to have proof supporting the decisions we make. Otherwise we might make decisions based on personal preference, inaccurate facts, or other subjective reasons. Collecting data allows us to base our decisions on facts.

How do you collect Data for Data Analysis?
Depending on the type of business you have, you may already have data collected. It could be the client management software, it could be your sales reports, or it could even be your social media insights.

Step 1: What questions do you want to answer?
Identify the issues and challenges in your small business that guidance. The right questions are the key to good data analysis. Your questions should be specific.

For example, if your business has been slow and struggling to cover your overhead, you need to figure out what to do. You could have the following question:

1. Can I reduce costs by reducing the number of employees without affecting current quality/production?
2. Is there anything fixable preventing my employees from working more efficiently?
3. Is there training I can offer my employees to increase their skills and reduce the number of employees needed?

Step 2: What Data does your business already have?
Take a close look at what data your business already has and see if it can answer your questions. If not, see about what data you would need to answer the questions you have. Then, brainstorm how you could go about collecting it.

In the above example, the data necessary could be the efficiency and output of each employee, the overall client/sales projection for the near future, and how much each employee costs the company.

Step 3: What will you measure and how?
Once you’ve narrowed down your key questions for resolving your issue, you can start deciding on you’ll measure and how you can measure it. The specific what and how depends on your questions and your data. For our example, we can decide to measure the number of employees our company has, the amount they’re paid in wages, and their output or efficiency.

This is a good time to verify your questions will result in quantifiable answers.

Once you’ve determined what you’ll be measuring, you can also define how you’ll measure it. Part of the “how” is determining the following:

– Timeframe (deadlines and parameters)
– Unit of measure (Hours? Goods? Dollars?)
– Factors (wages might not reflect complete benefits)

Step 4: What additional data does your business need?
Perhaps in defining the questions, measurements, and methods of measurement you’ve realized you have insufficient data. Maybe you haven’t successfully quantified the output or value of each employee in your business. Or you don’t know how efficient each employee could be. Either way, you’ll need to develop a plan to measure applicable data.

To measure data you can go backwards and look at the past assignments, or you could go forward and record for a certain period of time. Regardless, it will take time to collect the necessary data. Know that all you can do is have the templates, instructions, and systems prepared so that once your data is collected/organized, it can be plugged in easily for analysis.

Step 5: Analyze the data

Once you have all your data in one place, you can analyze and interpret the results. The goal in data analysis is to disprove the hypothesis or not disprove the hypothesis. This means you can’t prove your hypothesis and a positive result is an ongoing process.

Here are a few questions you can ask yourself once you have the results from the data:

– Does the data answer my question?
– Does the data help prove or disprove a point?
– What are the limitations of the data analysis?

Assuming your data analysis results answered the question you had initially posed, you can count it as successful. You can go ahead and plan how to execute the plans for improving your business or solving the issue at hand. Rest easy knowing your decision is proven by measurable and quantifiable data.

Do you have any questions about starting a business? Or running a small business? Send us a msg and we’ll sit down with you to see how we may be of service.

Are Your Hiring Practices Guilty of Accidental Discrimination?

By Lisa 0

Workplace discrimination has always been a hot subject. Yet, in today’s progressive society, employers need to be more conscious than ever in how they hire. By focusing your attention on equality and integrity during your hiring process, you can eliminate accidental discrimination. This will ensure you’re hiring the best candidate for every position. 

Avoid accidentally leaving certain demographics out of the loop. Don’t deprive your company of valuable candidates that could contribute to your company’s bottom line. Read the three major red flags that your hiring practices are discriminatory below. 

You Use Discriminatory Language

Check your job listings, website, and career pages for any discriminatory or preferential language usage. For example, using “he” when referring to a general individual instead of “their.” Also, be careful of using words that usually apply to a specific gender. For example, The Hire Talent says the adjective “dominant” may make the posting seem like it favors male applicants. 

Language preferences can be seen as narrowing down candidates based on race or ethnic group. Avoid writing your entire job post in a different language or peppering in words in another dialect.

Remove every restrictive term from your job description and ensure that everyone in your office, especially human resources and hiring managers, are well-versed and only use non-discriminatory language. Gender-specific job titles, stereotypical descriptions of men or women, and any references to skin color, ethic background, religion, gender identity, or sexuality should be omitted.

Hiring Decisions Are Made on “Gut Feelings”

According to Perception Institute, relying on a gut feeling could result in implicit biases leading to discrimination. Many companies pride themselves on hiring candidates based on connection rather than credentials, but personal connection is subjective. Most of the time, this means people are only being hired based on the opinion of hiring staff or the manager. To avoid implicit bias and discrimination in the hiring process, you should employ a variety of screening measures that ensure applicants are being judged fairly based off their competency, educational background, and commitment to the position.

Your Workplace Lacks Diversity

Take a look at your current employee population; are they all from the same ethnic background, or is there a major discrepancy between gender in various positions? If you only hire women to work in support positions and men for high-level roles, you could be at risk of discriminatory hiring practices. 

Go through your current list of resumes and see what type of candidates are applying to your company. If you find there is also limited diversity among applicants, this could strongly indicate discriminatory phrasing in your job listings. 

Take a closer look at who is hiring and make sure that your staff completes cultural sensitivity and discrimination training. Sometimes, just learning about the impact of subconscious bias can make people more aware and less likely to discriminate.

Still have questions on the best way to avoid a lawsuit on discriminatory hiring practices? Speak to the experienced attorneys at Lum Law Group today!

How Much Protection Does Your Business Actually Need?

By Lisa 0

If you own a business, you need insurance to protect it. The world is unpredictable. Although you can take some precautions, you cannot control or prevent every problem. An unexpected weather event can damage your main facility. An unforeseen problem can injure someone using your product. Even as attorneys, we have malpractice insurance.  The amount of insurance protection your business needs depends on several factors.

Where Are You Located?

Basic liability and commercial property insurance should handle most issues that happen at your physical location. The cost and limits of that insurance are based on the location and nature of your physical space.

The reason an insurance adjuster will come to your location when you start a policy is because the insurance company needs to have an idea of any potential risks. A business located in a flood plain will have higher insurance costs than a business in a safer zone.

It also makes a difference if you are a brick and mortar business where many clients will come to you during the day or an online company with little direct customer contact.

What Do You Do?

Different businesses carry different kinds of risks. People can be injured in both a family restaurant and a skydiving expedition, but the types of injury and risks of injury are quite different. In the case of product liability, insurance looks at the type of product your company makes, and how risky it is to be on the market. Your legal team or insurance company will ensure that you meet the legal requirement for your type of business. They will also advise you of expanded coverage options if you run a higher risk business.

What Sort of Equipment Do You Have?

Your employees are your biggest asset as a business, but they can also suffer injury and bring claims against your company. The level of coverage you need can depend on the type of equipment you use. Even with standard safety procedures, people are injured by manufacturing equipment on a daily basis. Certain types of equipment also require regular maintenance and safety inspections. On the other hand, an office worker has less exposure to serious injury, requiring less in insurance coverage.

An uncovered claim can have a serious financial impact on your business. It can also take up time and energy as you work through the legal system. By making certain that your coverage is sufficient and up to date, you are protecting your business from the unexpected.

For all your business advice needs, Lum Law Group is here to help. Contact us to find out how we can best serve your needs!

4 Ways to Scrape Up Extra Funding for Your Business

By Lisa 0

Searching for additional funding for your business can feel like a business within itself. With so much information available, it can be overwhelmingly time-consuming to comb through it all to figure out which sources are credible and worth your time. Read on to learn four ways you can find extra funding for your business. 

1. Business Grants

Funding your business through business grants is an often-overlooked option. Grants are different from loans in that they do not have to be paid back, which can make them very appealing to some. However, applying for a grant can be a lengthy process of quantifying on paper why you are the best candidate for the grant.  In order to qualify for a grant, it’s best to hone your writing skills or hire a professional grant writer. 

It is also wise to search for grants on an ongoing basis rather than wait until you are desperate for money. Similar to school scholarships, grants come in all types and amounts, and each one is specific to the demographic it is meant for. When searching for grants, it is common to come across scams, so the best place to look for grants is on an official government website.

Resource: https://www.valuepenguin.com/small-business/small-business-grants 

2. Business Loans

Business loans can be a good source of funding for your business, but you should be careful. As a business owner, you need to know yourself well and decide if you are comfortable taking on debt that you may be personally responsible for.

One of the main reasons people apply for business loans is because they need the money to scale and have grown beyond their ability to fulfill orders. Always have your paperwork in order with your current data so that you can expedite your loan application process as soon as possible. Along with having a good credit score, you may have to meet additional requirements for having been in business for a certain length of time in addition to generating a certain level of revenue. 

Resource: https://sunwisecapital.com/bad-credit-loans/ 

3. Angel Investors

An angel investor is usually one person (as opposed to a hedge fund) who provides capital to businesses they believe in. While angel investors are wonderful to have, you cannot risk your business by depending on one. Finding an angel investor is as easy as searching the web, but the hard part is scheduling an opportunity to pitch to them and then nailing it.

Additionally, the financial blessings of angel investors often come with strings attached.  It is seldom free money. The terms of the investment vary for each situation. However, usually the investor becomes, at the very least, minimally involved in your business.

Think of an angel investor as similar to a hedge fund in the sense that you are beholden to the initially agreed-upon terms.   

Resource: https://donnagriffit.com/guides/the-ultimate-guide-on-how-to-find-an-investor-and-get-a-meeting/

Crowd-sourcing

Funding via crowd sourcing is not just for musicians and artists. Over the past decade, crowd-sourcing has become a respected avenue for acquiring business funding. Consider using government websites for crowd sourcing education in general, and then begin with Kickstarter as just one example of the format.

Resource: https://digital.gov/event/2019/04/09/federal-crowdsourcing-mobilize-citizen-scientists/ 

Now that you have a little more information about where you may be able to find additional money to fuel the needs of your growing business, go out there and get searching. 

Need more assistance setting up your new business? Consult Lum Law Group about legal complexities that might affect your business!

4 Assets That Can Help You Scale Your Startup

By Lisa 0

Just because you have a small-scale business operation doesn’t mean you have to forego a professional look and feel. In fact, securing a professional appearance is essential to the successes of all small businesses. Consider using these four assets to help your small business project a confident and high-level demeanor.

A Professional Phone Number

Voice over internet protocol (VOiP) is a technology that allows you to use broadband internet to make telephone calls. Using VoiP will provide you with cost savings and other advantages. One of the biggest advantages is that you can talk to your clients from anywhere in the world as long as you have an internet connection. VOiP services generally have excellent phone connections and can be bundled with other services such as voicemail, fax, caller identification, call forward, last number redial and more.

Small business owners may also consider purchasing a toll free line (subscription) to give your business further credibility.

A Professional Business Presence

Even if you’re operating out of your home, you can use a virtual office to direct mail to a real business address. The appearance of a physical business location will go a long way toward establishing the power of your brand.

Entrepreneurs have several choices in this matter. If you work completely on your own, you can share a co-working space with one or more individual. Many co-working spaces also offer mailing address only services for a fraction of the cost of having conference room and shared space access. Other options include setting up a virtual mailbox online that will provide you with a physical mailing address. Vitrual mailbox services provide alerts when it receives physical mail on your behalf,  allowing you to manage your mail online. 

A Powerful Web Presence

A website isn’t a luxury, it’s a necessity. However, these days it is not just enough to have a website.  You need a website that will help potential clients to identify your brand. A website with an attractive design, informational blog posts and other key elements will help establish your small business as a local authority in your industry.

A Loyal Network

You are your own biggest asset. What you know and how you keep your customers happy is, perhaps, the biggest factor in scaling your business. By providing the best possible products or services, you’ll keep customers happy.  By keeping in touch with your previous customers and bringing them back as repeat customers, you are forming a network around your small business.  Doing so can lead to word-of-mouth, or testimonial marketing, a recognized economical method of getting more customers.

Remember that every business was once a startup. The key to scaling it is to wisely use assets available to you, including your own talents. 

If you’re growing your business and need legal advice, we’re here to help! Contact us today to discuss how we can help you.

4 Ways to Build a Socially-Responsible Business

By Lisa 0

Customers are increasingly choosing to patronize businesses that aim to do the right thing and act responsibly. People are now basing purchasing decisions in part on a business’ behavior. Here are some ways that your business can be more more socially responsible.

Be Active in the Community

Participating in the wider community through both charitable initiatives and volunteering will show customers that your business cares. This demonstrates that something beyond profit governs your activities. Charitable donations are a way of giving back to the community, and your customers definitely take notice. Even if you give a little bit of money or some of your time, the satisfaction that you and your business will derive will be immense. When you support the community, the community will support you in turn.

Look into Solar Energy

Reducing your business’ carbon footprint by going solar is not only socially responsible, but  it can help your bottom line, too. Besides the environmental impact, there are plenty of profit-driven motivations that make solar energy sensible. After investing the upfront cost of installing the solar panels, your electricity bills will be greatly reduced. Once installed, these systems can last for 20 to 25 years, which, given there are tax incentives for turning to solar power, make the change worthwhile. At the same time, you are doing your part to reduce greenhouse gases.

Adopt a Code of Ethics

Your corporate behavior affects both your employee’s morale and your business image in the community. You can impact how your company does business by incorporating behavior rules and standards. This code then becomes part of how employees do their jobs, governing their employment evaluations.  This code of ethics can include various rules that mandate respect and a requirement to follow rules and regulations. It can proactively define what constitutes bad behavior to shape employee expectations.

Create Incentives

Employees will behave in a more socially responsible way when it is worth their while. By offering awards for workers who engage in socially responsible behavior, you provide an incentive for them to become good examples to other employees. This will trigger a domino effect in among your employees. Examples of incentives could include corporate programs meant to teach the right kind of behavior, including ethics training and credit for time spent engaging in socially responsible activities.

As a business owner, you have a multitude of ways to make your business more socially responsible. Any initiative should start from the top, so why not get started today?

For more advice on how your business can act responsibly, we are happy to help with our consultation services. Check them out today!

 

Why the Order of Business Matters

By Jessica Suotmaa 0

Did you ever wonder which came first, the chicken or the egg? Similarly, you may have wondered if you should be filing your company with the State or with the Federal Government first? Or perhaps they’re just one and the same?

They are not.

There is an order which you should follow, but consultants offering quick and helpful tips will tell you to register for a tax identification number first. After all, if you’re a small business owner just getting started, you need your tax id to open a bank account and give to vendors to receive payments. Obtaining a tax ID may be your primary concern and all that other paperwork can be handled by them.

Note: Most banks require your State registration documents to open a bank account.

You pay them to set up the tax ID for you, and you don’t hear back unless there’s a problem–but usually there isn’t and you obtain your tax ID immediately.

Note: You can apply for a business tax ID for free on the official government website.

Then a month later, you may discover that you cannot use the name of your business. Someone else has already claimed it but you didn’t know because you didn’t check the name on your local State’s Secretary of State website.  It’s a quick and free search that prevents you from pursuing registration for a name that is not available to you.  In other words, it prevents you from wasting time and money.

So now what? You have to change the name on your tax ID because it doesn’t match. You may have to change website domain names, email names, logo designs, business cards, and other promotional material in which you’ve already invested.

Not ideal.

To avoid a situation where you have to back track, start the process the right way.  The correct order for starting a business in California is as follows:

  1. Determine your business needs by the type of business you’ll be doing.
  2. Talk to a professional (such as an attorney) about the best way to organize your business (e.g. partnership, LLC, corporation).
  3. Decide on the organization and tax methods.
  4. Decide who will be the primary responsible person.
  5. Decide on a company name, trade name or “doing-business-as” (DBA) name.
  6. If applicable, search the State’s Secretary of State business website for the business name of your choice.
  7. If the name is available, prepare documents for registration.
  8. Pay applicable fees.
  9. Wait for the documents to arrive.
  10. Apply for the Employer Identification Number (EIN), aka “tax ID”.
  11. If applicable, order a copy of your corporate book.
  12. If applicable, order your marketing materials.

Starting a business can be challenging. While it’s tempting to allow companies that offer package deals to do-it-all for you, it’s important to realize you need to know what they are doing for you. Is it to your advantage? Will your business outgrow the model? Is the organization or tax method appropriate for your type of business? Consult a business attorney for professional advice.