- It is common for many small business owners in Orange County, California to ask about how to protect their business interests. There are key areas that business owners should focus on in order to protect their company, and these include: establishing good business practices, purchasing the proper type and amount of insurance, acquiring a proper business structure formation, as well as maintaining your business record.
Key Areas to Protect Your Small Business
Running a small business can feel very overwhelming. There’s always too much to do, and not enough time to do it. You’re always running out of breath. You very often have to pick and choose which things you will ignore and set aside for another day.
But there are certain key business practices and legal structures that should be a priority to put in place to protect your company. Ignoring these four steps can put your small business in danger of potential lawsuit and government penalty. It’s better to be prepared rather than have to ask for forgiveness later on. Working with a small business attorney like Incorporation Attorney can be a vital part of getting your legal house in order.
We help prudent business owners place the following areas in order, with minimum time and expense, helping owners to protect their small business interests:
1. Good Business Practices
Ideally, small business owners should utilize the right processes and procedures to make sure that they always meet the satisfaction of their customers, and thus protect the interests of their company. You’d be surprised to find out how many small business owners fail to do this step.
For example, there are business owners in California that never take the time to hire a business attorney that can properly draft and review business contracts that the company uses daily. These entrepreneurs resort to using forms that they’ve copied from their competitors. Some use forms they’ve downloaded from the Internet. These approaches of creating legal documents and contracts often result in many legal problems.
A Case of Using an Illegitimate Contract
There is one client we have who chose to use a contract that was taken from the Internet prior to our involvement. That client had no idea that the contract was only suitable for use in Maine. However, since the parties involved in the contract were in California, and the contract was executed in California, the terms stated in the document applied to the wrong state law.
When a lawsuit was filed, problems were encountered. The court determined that since it was the business owner who drafted the contract, a dispute in the interpretation of the law would be found against the owner rather than the customer.The owner thought a few thousand dollars could be saved by avoiding the use an attorney, but when the lawsuit came up, the small business lost tens of thousands of dollars.
2. Proper Insurance
Getting the right type and amount of insurance for a particular business is one of the most important things that small business owners should do. Keep in mind that although corporate structure is important, it cannot replace having the right insurance.
Finding a Skilled Insurance Broker
Businesses in Orange County, California vary in risks that they face. To find the best type of insurance for a business, the owner must form a relationship with a skilled commercial business insurance broker. How and where can you find one?
A small business attorney is the best person to go to for a referral of that type of professional. At Incorporation Attorney, we deal with various kinds of small businesses, and so we get to meet a wide variety of insurance brokers who, in turn, have extensive knowledge and expertise in different kinds of business specialties. Through these connections that we’ve made through the years, we can guide our clients to the right insurance broker who can help them through the process of choosing and purchasing the most ideal insurance for their small business.
3. Proper Creation of Business Entity and Maintenance of Corporate Records
Improper selection and creation of a business entity is a very common mistake among owners of small businesses in Orange County, California. Hoping to save a few dollars by not seeking the help of a small business attorney, many entrepreneurs resort to the Internet. It is unwise to rely on an Internet source when it comes to the creation of a business entity.
Choosing the Right Business Structure
In process of creating a business entity, a business owner must first make sure that he or she has chosen the right kind of structure for his or her particular enterprise. A common question among brand new entrepreneurs is, “Should I form an LLC or a Corporation?” The answer varies depending on the situation.
Every situation has its own set of considerations. A prudent business owner should take time to sit down with a competent small business lawyer in Orange County, California to review the nature of his or her business, which includes but is not limited to the following: the people involved, the risks of the business, the growth plans for the business, and the pros and cons for the use of a corporation or a limited liability company.
At Incorporation Attorney, once our client has decided on a business structure, we then help them through the process of preparing all the documents required to form that particular business entity.
4. Properly Maintain Corporate Records
The proper maintenance of corporate records is also an essential factor that is needed to protect a business in Orange County, California. Keeping records can be a very tedious task. At Incorporation Attorney, we make things simpler for our clients by creating an annual corporate records program. For a small and reasonable fee, we take care of all this work for our small business clients.
Protect Your Small Business Interests – Trust a Competent Business Lawyer
To protect your small business interests in Orange County, California, you basically need to employ good business practices, choose the right type and amount of insurance, and create the right type of business entity, as well as properly preserve your corporate records.
To assist you through all of this you need the help of a competent small business attorney in Orange County, California. Hiring an attorney is a small investment that helps you avoid larger problems that can cost you more money in the future.
If you need guidance on how to best protect your small business, contact us at Incorporation Attorney. Our business lawyers are experts in their field. We can help you in selecting the proper business structure suitable for your enterprise. We can also help you choose the right insurance broker. You can also avail us of our corporate records program so you can be sure that your records are efficiently managed. Call us today at 714-634-4838!