Business planning considerations PDF
Written by Mario Fausto   

Business planning has become increasingly easier and faster with the aid of technology. Many clients and prospective entrepreneurs use the internet to form, structure and complete their legal research.

Although we encourage our clients to take an active role in the planning and preparation of their business, we think it is important to carefully prepare and discuss the entity structure of your business with your lawyer and accountant.
Realizing cost-saving when using available resources, keep in mind the pitfalls that many encounter during their operation when you plan poorly for your enterprise. Our business attorneys are equipped to provide you with a thorough explanation of the challenges and benefits of each entity.

How and when to choose the correct entity is important. C Corporation, S Corporation, LLC, LP, General Partnerships, Family Corporation, REIT, Close Corporations, Associations, and Non-Profit Organizations provide alternative investing vehicles as well as asset protection. Accounting and tax consequences can be debilitating to your business. Understanding pass-through, double taxation, deductions, director liabilities, bylaws, articles, resolutions, losses, and self-employment taxes, among other concepts, is important prior to forming your business. Success and profitability can be achieved much more easily if you and your associates understand the challenges that your entity selection will encounter prior to commencing your endeavor.

Additionally, a business will need to implement methodologies and processes that scale to your business.

 


Accounting: One of the most important areas, in addition to law, that should be addressed early in your business strategies is accounting. The tax saving achieved by your business will lie in the methods and processes applied by you and/or your accountant. Your business may be eligible for credits and special tax reduction programs only if proper planning is used. To ensure eligibility meet with your lawyer and accountant as early as possible.

Marketing: The easiest way to market your business is using the internet. The internet provides a fast and easy way to reach millions of potential customers. Understand the benefits of publishing your business online- copyright, trademark and proprietary materials should be properly addressed. You should begin by reserving your domain name.

Employee Issues: As your business grows you may require the addition of employees or independent contractors. Before addressing your supply issues, your business needs to consider the relationship of each prospective employee or independent contractor. Reducing employee and independent contractor liabilities is important for a business. Discussing the steps that your business should take to meet the legal and tax criteria can help minimize your exposure to future employee and independent contractor litigation.

Permit Issues If your business will be reselling products online or through traditional bricks and mortar establishments a reseller permit will be required. The Board of Equalization should receive your application prior to reselling products Ensure compliance with reseller obligations by setting aside taxes and timely filing your quarterly reseller tax returns. Additionally, if you are a professional working under a specific professional corporation or other entity, you should timely complete all federal, state and local government board certifications.