If you’re starting a business or you own or manage one that’s small but growing, you live an exciting and challenging professional life. You’re constantly looking to move your operation forward and you never stop trying to innovate and differentiate what you do from your competition. One of the best ways to keep your business moving in a positive direction is by making sure that you don’t waste any of your working capital. Let’s face it, that’s much easier said than done, but it’s made much easier if you work with a San Diego business lawyer who understands how to protect clients from avoidable costs.
Kam Law Firm has helped business clients across several different industries pursue their goals while simultaneously avoiding those unexpected and potentially large costs or payouts that can harm if not cripple many businesses. The firm does so by getting deeply involved with the clients’ operations so that it can advise those clients on issues that tend to commonly arise. Every dollar counts at this point, so below you’ll find 5 examples of costs that a San Diego business lawyer can help your operation avoid.
1. Entity Mistakes
The first decision that a business owner in California should make involves the type of entity that would be appropriate for that business. Choosing properly can help an operation avoid tax costs and potential liability in certain matters but choosing the wrong entity can lead to a pile-up of costs and red tape that slows the entire operation down. Kam Law Firm has discussed considerations for choosing the right business entity in California, and below are a few examples of the different types from which a new business owner can choose that can be found on the California Secretary of State’s Web site:
- Corporation
- Limited Liability Company
- Limited Partnership
- General Partnership
- Limited Liability Partnership
If you’re in the startup stage of your business, working with a San Diego business lawyer to choose the proper entity can make a huge difference on your balance sheet.
2. Non-Compliance
Depending on the type of business you run and the industry in which you operate, you’re most likely going to need to deal with state and potentially federal levels of compliance with different types of laws. These laws can involve the following types of issues:
- Environmental concerns
- Employment issues
- Worker benefits
- HIPAA
- Payroll tax
There are many other possible compliance situations that can arise, but one thing that they all have in common is that if there’s a problem, it will slow down a small and growing business and it could potentially lead to enormous costs.
A San Diego business lawyer can help make sure that your operation is fully in compliance with all relevant laws, regulations and standards. Kam Law Firm’s experience in representing business clients across many industries means that you can feel confident that you won’t be receiving unwanted mail from state or federal government agencies.
3. Administrative Reviews
Another problem that can arise with growing businesses involves situations where a governmental agency is contacted to conduct some sort of review. Administrative reviews can arise for several different reasons, including those conducted by the Equal Employment Opportunity Commission and others. These reviews can take a long time to complete and can lead to costly consequences even if the business is found not to have violated any relevant laws or regulations.
The best way to avoid these costs is to do everything possible to not get involved with them in the first place. While you can’t control everything an employee thinks or does, you can set policies and protocols that protect your business from these charges. Working with a San Diego business lawyer can help you understand how that’s done, and Kam Law Firm can help you oversee any potential issues in this regard.
4. Collections/Financial Issues
A San Diego business lawyer is not going to help your business with its finances or its bookkeeping functions. Every small and growing business should make sure to work with an accountant or finance professional so that the balance sheet remains completely accurate for obvious reasons. However, contracts are a part of your bookkeeping function, and those need to be managed carefully as well.
That’s because if something goes wrong with a vendor or lender, for example, you could start getting threatening letters or even face costly penalties or interest charges if something is not paid promptly and in accordance with a lending agreement or a contract. These types of costs can inflict extreme harm on a small business, and Kam Law Firm can help you if you find yourself dealing with a creditor. The firm can also help you minimize these risks by reviewing your agreements before you sign them.
5. Litigation Costs
The worst time to seek the help of a San Diego business lawyer is after you’ve been sued. That doesn’t mean that you shouldn’t seek this type of help – in fact, at that point it’s absolutely critical that you obtain legal advice as soon as possible – but it’s unavoidable that this is a situation that’s going to come with heavy costs, almost regardless of the ultimate result of the matter.
Kam Law Firm can help minimize the risk that you’ll be named as the defendant in a lawsuit. The firm can help recognize warning signs early and deal with any threats proactively so that situations can be resolved before proceeding to litigation. Generally speaking, no one wants to wind up in court or dealing with settlement negotiations, but chances are your small business finances will suffer immensely from the weight of uncertainty and the ultimate costs associated with something that could be prevented if you have legal help early.
How Kam Law Firm Can Help
Running a small business is a challenging and rewarding experience. There is a lot to manage at any given time, but a common problem that small businesses face is unexpected costs that can lead to other serious problems. As part of your plan, you need to do everything you can to minimize the risk that these unpleasant surprises will arise. A San Diego business attorney can help you minimize those risks, so if you’re ready to protect yourself as much as possible, contact Kam Law Firm today to schedule a complimentary initial consultation.
