What Issues can Impact a Small Business

small business issueWhat Issues can Impact a Small Business

Starting a business is a significant achievement, and if you have all it takes– capital, a good location, and a great business plan, the journey can be relatively easy. However, maintaining the business can prove to be a challenge.

There are many challenges business owners face, both large and small businesses. But some of the difficulties are strictly faced by small businesses. Therefore, to overcome the issues, one must be aware of the obstacles. You may also need help from professionals such as a competent business lawyer San Francisco.

Common Issues That Affects a Small Business

Most of the issues small businesses face, most large companies have grown out of them. However, large companies face different challenges on their level, some requiring the help of a San Francisco CA business attorney. They include:

Client Dependence

Diversifying your clientele base is one of the most important things to ensure your business stays afloat. If a single client maintains your business, you are more of an independent contractor than a business owner.

Cost of Health Insurance

Managing and running a business is already difficult without adding the mounting pressure of health insurance costs. Healthcare is expensive, and adding on a list of your employees can be financially draining.

Additionally, lacking the basic knowledge of health insurance coverage can make the evaluation a complex plan. Get yourself a reputable San Francisco CA small business lawyer like Attorney James M. Braden to help you decide on the most suitable healthcare plan based on the providers, benefits, and price.

Government Regulation

Most business owners admit to the government posing excessive regulations, making them huge obstacles in making them prosper and profitable. The business regulations differ in specificity based on each business.

For instance, during President Obama’s term, there was a record-breaking number of approved and implemented regulations despite their ruinous effect on small businesses.

A business may sometimes run into issues with the law especially if they fail to adhere to some regulations. Whether intentional or not, you may have to hire a business litigation attorney San Francisco to help you out of the mess. A good business lawyer will help you dispute any case against you in San Francisco.

Federal Taxes on Business Income

Most business owners in their start-up phase often wonder how much they will owe in taxes. Unfortunately, the answer is not uniform as the federal government has various factors to consider for each business, thus varying the tax.

The organizational skills of your business will impact your federal taxes. For instance,  A corporation compared to an LLC is the most simple structure to handle during taxation. It’s taxed separately from its owners. Therefore, the tax is based on its income with graduate rates.

The Economy

Any economic condition, strong or slow, will impact all businesses. However, small businesses are bound to feel the impact more than their counterparts. Unfortunately, no one holds the ability to foretell the actual economy–apart from predictions and comparisons to previous similar economic situations.

A strong economy allows all businesses to enjoy great prosperity– high disposable income, low rate of employment, and consumer confidence. However, a slow economy destabilizes a small business.

For example, during an economic slowdown, consumers will be concerned about their financial stability, making them more cautious with their spending. This move leads to decreased revenue for small business owners. The slow profit stream, in turn, makes it difficult for the business owners to repay creditors, therefore, negatively impacting their long-term viability.

Workers Compensation Cost

By Law, all California employers should provide workers’ compensation. Unfortunately, California has been ranked as one of the most expensive states for workers’ compensation costs.

According to a report by the workers’ compensation premium rate, the ranking summary shows that for every $100 of payroll, $3.48 is deducted and dedicated to workers’ compensation. This can effectively work for large companies but significantly affects small businesses.

How Can Your Attorney Help?

A San Francisco business attorney can assist with the various legal issues that may arise during your business operations. The business lawyer has your best interest at heart and mind and will act as an advocate on your behalf. The law office of James M. Braden is one of the leading firms that will provide you with an experienced San Francisco CA business attorney for any business-related legal representation you may need. Call us today at  (415) 595-4385 to start your process today.