The constant whirlwind of excitement and activity surrounding the launch of your startup can leave you feeling overwhelmed. You can get so focused on the day-to-day tasks and responsibilities of getting your operation up and running that you neglect some of your company's most vital legal components. Because you're so busy and likely not generating much revenue during the startup phase, it may be tempting to try to handle everything on your own and not seek out the support of a business lawyer.
When you realize that your biggest personal and business expense is taxes, it can come as quite a shock. Seeing so much of your money wind up in the government's hands can feel like a shakedown. So, it's crucial to strategize to reduce your taxes. Some people resist enforcing creative tax strategies because they're worried it will get them in trouble with the IRS. However, as long as you do things properly, there's nothing illegal about strategizing to pay the least amount of taxes possible.
Although paying taxes is a largely unavoidable part of running a business, you might be pleasantly surprised to learn that there is one common type of tax you can often avoid paying. Capital gains tax is one of the few taxes you can avoid paying, but only if you plan ahead and plan wisely. Since we're only a few weeks away from the end of the year, it might seem like it's too late to save on capital gains taxes in 2021, but you may still have time if you act immediately.
Many entrepreneurs structure their business as an LLC because, like corporations, LLCs offer personal liability protection for their owners. But unlike corporations, LLCs are not legally required to adhere to many of the same corporate formalities required of corporations. Although the administrative requirements for an LLC are far less strict than for a corporation, you’ll still need to abide by some operational formalities if you want to maintain your personal liability protection.
A large part of being a successful business owner is knowing how to consciously manage relationships and facilitate conflict when it arises healthily and productively. When business owners and managers find themselves in a disagreement or misalignment of expectations, the potential costs are endless. No one wants to end up in a dispute. Fortunately, there are steps you can take to reduce your chances of conflict in the future. Learn more here!
You may be wondering why you need to hire a lawyer to help you run your company. This is true today when you can access just about every conceivable legal document online for cheap from the countless online do-it-yourself document services. But without the guidance and support of trusted legal counsel, you're likely not aware of all the ways your business is leaking money, putting yourself and your family at risk, and possibly limiting the positive impact you have on the lives of your clients.
Too many start-ups fail to make the transition from idea to execution or encounter major setbacks along the way. In the midst of developing your growing start-up, don’t make the common mistake of disregarding tedious, but vital tasks such as making sure all your legal, insurance, financial, and tax ducks are in a row. Establishing a solid legal system can help you avoid costly mistakes and save time and stress down the road.
Often owners and managers of small businesses often know each other before they go into business together. Sometimes, they're even related. Preexisting relationships can help propel small businesses forward, especially when there are high levels of trust and competence. However, familiarity is sometimes accompanied by a lax attitude toward operational formalities. So, it's best to have a skilled business lawyer who can help you structure your operational strategies properly.
As we wrote last week, Democrats in the House of Representatives released a new $3.5 trillion proposed spending plan that includes a wide array of changes to federal tax laws that may affect your business and estate plan. While the proposed legislation is still under consideration and far from being finalized, and with the time it takes to plan and execute some of the financial and estate planning actions, we suggest you start strategizing now with your Family Business Lawyer.
Democrats in the House of Representatives released a new $3.5 trillion proposed spending plan that includes a wide array of changes to federal tax law (increase in personal and capital gains tax rates, etc.). Yet, the proposed law is still under consideration and far from being finalized. If your business or personal finances stand to be impacted by any of these changes, you must act quickly to ensure that whatever actions need to be taken can be planned and executed before the end of the year.