Growing your business is more than just numbers on a balance sheet. It’s a testament to your dedication, hard work, and vision. Growth is an achievement to be celebrated and we’re not here to take away from that, but it’s important to be prepared for the changes to come.
At Dahl Law Group, we celebrate and champion the growth of businesses. We want to see you expand, hire more employees, and make your mark. Our goal is to partner with you and ensure that as you grow, you’re equipped with the right tools to compound that growth without legal or financial issues.
One of the overlooked aspects of business expansion is the accompanying tax and other liabilities. Having a law firm by your side before you get “too big” is a key element to limiting those liabilities and preserving your path to growth.
Profitability Grows Alongside Liability
It’s an inescapable truth: as your profits soar, so too do your tax liabilities. It’s a testament to your success. Every time your business makes more money, there’s a higher tax obligation waiting in the wings.
In the initial phases, it’s easier to manage, especially with a sound tax strategy. You should anticipate certain liabilities and employ strategies to mitigate them early. However, as the scale of your business operations increases, the tax brackets you operate within become more expensive.
Growth and Evolving Structure Uncovers Additional Liabilities
A growing business isn’t just about profits. It comes with more employees, a growing client list, more vendors, new contracts, and even potentially more commercial real estate investments. Each of these growth metrics has new liabilities to be aware of and plan for.
For instance, with every new employee you onboard, you need to be cognizant of the onboarding, compensation, benefits, and income tax implications. Each phase of employee interaction comes with distinct tax implications.
Contracts are another vital area to consider. As you deal with a growing number of vendors and clients, each contract you sign must be ironclad. Weak clauses can become loopholes that may lead to significant financial drains in the future. For businesses at any stage, severability clauses are crucial. They ensure that a single contractual misstep doesn’t jeopardize your entire agreement.
Work with a Law Firm Early and Often
Engaging with an experienced law firm, especially one with expertise in both tax and business law, isn’t just about handling crises; it’s about averting them. By collaborating with legal professionals early on, you’re laying the foundation for forward-thinking growth opportunities.At Dahl Law Group, we pride ourselves on helping businesses develop effective tax strategies, craft solid contracts, and prepare for the future. Growth for your business opens up many new opportunities. Let us help you realize that promise.
Dahl Law Group
