I started a new business.... now what?

Yay! The economy is moving, you’re starting up a new business, now what?  I have probably helped over 700 businesses start up since I started practicing law over 30 years ago. It has been my specialty. People back in the 70’s said, “nine out of ten businesses fail in their first few years. How are you ever going to survive?” I always had a standard reply. “Wow, if it’s that scary, imagine how they feel.”

I have dedicated my legal career to helping business owners, because I am passionate about business. Good thing, because running a law practice is a business as well, and it has a couple of complications like a Trust account to go along with it. I was overwhelmed by the paperwork, the questions about what to do first, and bringing in that first money, all while actually practicing law. It’s one thing to have information, it’s another to actually “do the business.”

One of my invaluable resources which is free, is the Small Business Administration’s “Business Information Center”. There are three in northern California: San Jose, Oakland and San Francisco. These Centers have books on all of the aspects of starting, running and growing a business. They have classes for a nominal amount of money, and they have retired executives who can guide you.

The one thing they don’t provide is legal advice, and depending on your type of business, you may need a fair amount of that… what structure do you take, what should your contract with your customers look like, how do you hire your first employee.

I’ve noticed that in your first 9 months there are so many legal questions. Lawyers charge out at between $300 and $450 per hour. I wanted my clients to call me as much as possible, but I hated charging them for every phone call or letter. So our firm established the “Corporate Start Up Plan” to help new business owners in their first 9 months of “incubation.” Check out our website http://www.alvisfrantzlaw.com/ for more details or give us a call.

Be sure to follow us on facebook as well: http://www.facebook.com/alvisfrantz

To find out more about business law or corporations, call Alvis Frantz and Associates, A PC at (925) 516-1617. HAVE A LEGAL QUESTION YOU WANT TO SEE ANSWERED HERE? Go to our website and “Contact Us”.

WHEN DO ENTREPRENEURS NEED A LAWYER?

by Barbara A. Frantz, Attorney at Law

Some entrepreneurs wait until they have a legal problem before consulting an attorney. Others make an attorney part of their business team, just like their accountant, banker and marketing and sales force. Analyzing the legal costs over a five year period for companies who use attorneys preventively, shows a dramatic savings. The faster your business grows, the more likely you will need legal counsel to protect the wealth that you are building through your business.

Here are some guidelines for when you should hire an attorney:

• A regulatory agency (such as the Health Department) contacts you.

• You are going to sign your first big contract.

• You buy or lease your first office space.

• Someone wants to invest in your company.

• You're not sure about your insurance needs.

• You want to standardize your contracts.

• You are sued or are thinking of suing someone.

• You want to patent, trademark or copyright something.

• You're designing your employee policies and procedures manual.

• You plan to export products or set up offices outside your home state.

• New legislation is adopted that you think might have an effect on your business.

Look for an attorney that you feel comfortable with who emphasizes "business transactional law" or who calls him or herself a business and corporate lawyer. Some attorneys who call themselves corporate lawyers only specialize in "securities" (stock investments in corporations). For the most part, you will be paying an unnecessary premium for their expertise on your simple business matters. Do not be afraid to have several attorneys for different needs.

Whether you make an attorney part of your team or wait until you have a specific legal problem, you must set aside money for legal fees from every item you sell, or service you provide. That money may ultimately be used for your company's expansion, or to pay a small claims court judgment instead of lawyers' fees, but it should be budgeted. The type of business that you have and where you are located (Large city attorneys charge more than in suburban or rural areas) determines how much you set aside. A good rule of thumb is 1-1.5% of the retail price or hourly rate that you charge.

Finally, if you develop a relationship with an attorney before you need one, you will have the opportunity to share your business goals, your philosophy, and some company information that will allow them to do a better job for you.

So, when you are faced with a situation that fits the need for an attorney call  Barbara A. Frantz of Alvis Frantz and Associates PLC

(925) 516-1617 email: info@alvisfrantzlaw.com or for more information visit:  http://www.alvisfrantzlaw.com/

Disclaimer: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

Do Business Owners Need Their Own David Horowitz?

by Barbara A. Frantz

In the process of melding Amy’s law practice and mine together, we needed to get a new merchant card account. This is the account that manages credit card charges from our clients. A client comes in, pays with a credit card, it gets deposited into our Client Trust Account, and after the work is done and our client is billed, we write ourselves a check from the Client Trust Account to our General Account. At that time, the money becomes ours. In the meantime, any fees that the merchant card company charges for the credit card transaction comes out of our General Account. There are several merchant card companies that offer this service, Elavon took over for Nova and is offered through Costco.

Each bank has services associated with a business owner’s bank account. Some services are on the computer only and others are through a “swipe” processor. The experience of comparing a new company with my old one was horrific. Every company starts out with about the same rate that they advertise: 1.99% of the charge on the computer, or 1.69% if you swipe the card plus 27 cents per transaction. But then when we dug deeper, the quagmire of variable rates begins.

If a client uses a card with no spending limit, such as Master Card World or Visa Signature, the card is considered “Not Qualified”, and the charge for the transaction can be as much as 7%. If the card is qualified, that is, it is a straight credit card with no rewards attached, you will get the 1.99%, but if the card includes rewards like the Southwest Chase Visa, you will pay at least 2.96% plus 33cents per transaction. If we don’t add the security code or the address on the charge we will pay 3.8% plus 33 cents per transaction. So the average probate avoidance living trust package could cost our firm as much as $105.

Business credit cards cost more to process than personal cards. Retail stores that have many transactions can pay even more. American Express cards cost the most to process. So the credit card companies make money on both ends of the transaction. The business is charged a premium for taking credit cards with rewards, and the consumer is charged a premium interest rate for using a credit card with rewards. This is a perfect project for David Horowitz as far as I am concerned.

The information above is not a substitute for seeking legal advice. Barbara Frantz, local resident for 16 years, has 34 years of legal experience, offering proven solutions for business owners to increase revenues and achieve their long range goals. Barbara has recently joined forces with Amy Alvis to form Alvis Frantz and Associates, a Professional Law Corporation.

For more details about the services that they provide, please visit http://www.alvisfrantzlaw.com/ or call 925-516-1617. All Rights Reserved.