For a big business, commercial law can be something of a nuisance, which is why such a company likely has a committed legal team to handle whatever might come up. For a small- to medium-sized business, the law can be a serious impediment to growth and operation. The confusing elements of the law range from simply paying your taxes to negotiating with other businesses. Paradoxically, taxes can actually be more complicated for a small business than for a large one.
Small Business Taxes
Small business taxes can be incredibly complicated and confusing because of the nature of a small business. If you are running a sole proprietorship, all of your income is essentially taxed as income tax and not capital, however, if you are running an LLC or some other kind of designation, you might have some income that is personal income and some that is corporate income.
Those different tax rates can be confusing to navigate because you have to keep them separate. They are by their definition, however, not actually separate. That is the sort of reason commercial law in Santa Barbara, CA can be so daunting.
A commercial litigation attorney in Santa Barbara, CA can help you navigate all of this confusion. Of course, it gets even more confusing when you have unpaid invoices or debts.
Unpaid Invoices or Debts
Commercial law differs on whether you are personally responsible for your business’s debts. If you are running a sole proprietorship, it is fairly straightforward that you are responsible for them, however, even that can get murky if debts are unpaid because of unpaid invoices from clients. You might also have a difficult time collecting on those debts if you don’t have an attorney.
A good attorney gives you the power to navigate the confusing world of the law. They give you power over your business dealings.
