Choosing and Creating an Entity:  It is rare that many businesses operate as sole proprietorships any more.  There are a number of advantages to creation of a limited liability entity.  The limited scope and extent of available liability coverage is a prime reason to incorporate or form some other form of limited liability entity.  There is no reason to think the tendency of insurers to increase the number and type of their policy exclusions will abate any time soon. 

The choice of which entity to form is sometimes a difficult one.  Limited Liability Companies are the fashion now, but they do require the payment of thousands of dollars in annual fees to the State of California.  A better option for many small and family owned businesses is a C Corporation with an S Corporation election.  Then, the only money owed to the state is the annual franchise tax (currently $800) and a small annual fee to the Secretary of State. The firm can provide the full array of advice on such issues and can form the desired type of entity.  The firm is affiliated with and maintains relationships with a number of kindred professionals (especially accountants).

John Swanson is also licensed in the State of Nevada and can discuss the advantages and disadvantages of forming an entity in that state as well.

Business Operations:  The old saying “a lock keeps an honest man honest” has application by analogy to the operations of businesses.  While a deal done on a handshake or a purchase order may work 95% of the time, what about those cases when it does not?  It only takes a few such bad experiences to eat significantly into the profits of a small or medium sized business.  The firm has drafted practically every form of commercial contract known to modern business: lease agreements, service agreements, installment sale contracts, purchase and sale agreements, and on and on.  A modest investment in such forms and a little instruction on their use can convert loss into profit or at least mitigate the negative effects of a breach situation.