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Smart decisions during business formation for long-term success

The initial stages of a California business are some of the most exciting, but they can also be some of the most complex and confusing. The decisions made during the business formation process will lay the groundwork for the future direction of the company, and it's important for an owner to choose wisely every step of the way. One of the smartest things an entrepreneur can do is to realize that he or she does not have to be an expert in everything in order to succeed.

This is why it can be important to choose the right kind of help in the beginning. From choosing the right business entity to preparing taxes, there is significant benefit in seeking guidance from experienced professionals. This also includes learning as much as possible before opening for business. Doing research and having help in areas where a person may not have as much experience and knowledge are important steps in securing long-tern success

Steps to reduce the chance of business litigation

A California small business owner has many things to consider during the initial stages of his or her business. These include necessary steps that can help reduce the chance of problems in the future. Business litigation can be costly and stressful, and an owner will find it beneficial to try and reduce problems by planning and thinking ahead. 

One common issue that can cause problems for business owners are accusations of discrimination or harassment in the workplace. These allegations are serious, but it's possible to reduce the chance of these incidents happening with strong behavior policies and reporting procedures in effect. If a problem does arise, an employer will want to take it seriously and move forward with the appropriate course of action as soon as possible. 

Uber facing business litigation over employee classification

When a person starts work for a company, he or she will have a certain classification. The way that companies classify workers affects how these individuals are paid, including whether they are eligible for overtime and a guaranteed minimum wage. The issue of classification presents a unique problem for rideshare companies that contract with drivers on an as-needed basis, and as a result, Uber is currently facing business litigation. 

New laws in the state of California may change the way the company views its employees. A bill that was recently passed seems to require a reclassification of rideshare company employees, but Uber plans to debate this point in court when defending itself against the recently filed lawsuit. The plaintiff in the suit claims that the company intentionally misclassified employees per state guidelines.

The facts about discrimination suits for California employers

In America today, common sense tells you that the cost for any form of workplace discrimination is likely to be high, both personally and professionally. There’s probably going to be shaming on social media and possibly a lawsuit. The chance of a lawsuit increases exponentially with the size of the business.

Here in California, there are several laws at play in a discrimination suit. If your business is currently at risk in terms of a discrimination suit, consider discussing your options with an experienced lawyer. But first, it’s important to understand the facts.

Business formation decisions impact a young business

Starting a business involves much more than just deciding on a good business idea and creating a Facebook page. The business formation stage involves much planning, financial preparation and legal steps that will impact a young California business for years to come. When a company is not able to secure the capital needed, there are choices that an owner can make that can prove beneficial for years to come.

Starting a company without much cash to work with is exceptionally difficult. One way that an owner can make this process easier is to plan operations in a way that allows for overhead costs to remain low. Business plans should take this into consideration, and owners can also employ creative solutions for many needs. For example, technology allows for owners to handle certain aspects of their operations themselves when they do not have the resources to hire someone.

Using preprinted contracts may not be good for business

Running a successful small business is not easy, which is why many California business owners often look for ways they can save time and money. One way they may do this is by using preprinted contracts when negotiating and formalizing business transactions. Simply printing off a pre-made contract seems like a good idea, but in reality, it may not be the best choice.

In simple and straightforward transactions or in situations where two familiar parties are repeating the same transaction again, a pre-made contract could work. Sometimes, all that is necessary is a simple explanation of the rights, expectations and benefits of both parties. In these cases, pre-made contracts could offer sufficient protection for both parties. 

Moving cautiously and carefully in the business formation stage

Starting a business in California is an exciting process, but it is also an expensive and legally complex endeavor. There are important decisions to make during this process that will impact the operations of a business for years to come. There are a few significant things that an owner would be wise to consider during the business formation stage that will help him or her avoid problems and lay the foundation for a strong future. 

Choosing a business entity is one of the most important choices that a business owner will make during this process. This is structure for the company that will affect things such as taxes for the business and the personal liability of the owner. Business partners, long-term goals and potential ramifications are all important factors when making this decision.

What a commercial landlord can not do when evicting a tenant

A tenant that doesn’t pay rent or ignores terms of the lease can be very frustrating for a landlord. Not only might it mean a significant blow to their income, but it can even affect the overall health of the property.

There is a way to evict a commercial tenant, but it requires landlords to follow a clearly defined legal process, with specific dos and don’ts.

Writing contracts to ensure that businesses get paid

When it comes to legal agreements, it's important for a business to take the time to ensure that the terms of the agreement meet its needs and allow for continued cooperation between the two parties. One of the most difficult challenges that a California company may face is securing payment from clients. Strong contracts can help a company get payment from its customers and clients in a timely manner. 

One important note is to ensure that any contract clearly spells out the terms of the sale and what actions should trigger payment from a customer. It will also help to ensure that a contract clearly spells out the time frame in which a company is expected to deliver a product to a customer and when payment is expected. Clarity of these types of terms can reduce the chance of continued conflict and problems in the future. 

Planning for the future during the business formation process

It's impossible to predict the future, but there are specific things that business owners can do that will protect their long-term interests. One of these things includes implementing certain plans and procedures during the business formation process that will go into effect in the event of their sudden death. California businesses can suffer greatly if their leadership passes away, and there are certain things an owner can do to ensure continued operations.

An example of this happened recently to a small business in another state. The owner unexpectedly passed, and his family was left scrambling, trying to decide what to do with the company. One member of the family stepped in and began to pick up the pieces, but it was a difficult period for everyone as they were grieving their loved one while also working through business-related issues. He did not have a succession plan in place, and it led to significant complications for those left behind.

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