Your Tax & Business Advisor
The New Business & Professional Advisors
By Raymond S. Kulzick, CPA, DBA
As published in the Pinecrest Tribune. May 25, 1998.
I want to buy or start a business. When is the best time to consult a CPA and attorney?
Many people consider starting their own business as a means to independence and self-sufficiency. Our data show that the number of new businesses started in southern Miami-Dade County has more than doubled during the last two years, but the number of business failures has also grown rapidly.
National studies, as well as our own experience, have indicated that the overwhelming cause of these failures is not a lack of capital (as many think), but lack of knowledge about the business of running a business. Too often, we encounter new business owners who believe that running a business is little different from working in one. Unfortunately, these individuals already may have signed multi-year leases with unfavorable terms, committed to long-term contractual relationships that don't make good business sense, or find themselves owing very large sums in payroll or sales taxes. These tragedies could have been averted if the new business owner had sought professional assistance before starting the business.
A new business owner is likely to have special skills in an operational area or in selling a product or service to customers. This is essential to business success. But staying out of trouble legally, financially, and with taxing authorities is also essential. This is where a qualified attorney and CPA come in.
Every large company engages outside CPAs and legal counsel. They do this because good advice is worth far more than you pay for it. Smart small business owners know this too.
Every new business should have a CPA and attorney before the business is set up. These professionals can offer invaluable advice at the time when many critical and long-lasting decisions are made. These include the form of organization, licensing and tax questions, location and leases, contracts with suppliers and customers, insurance and liability issues, hiring employees or contractors, and many others.
Try to select a CPA and attorney who are not your friends or family members. Truly unbiased business advice comes from independent sources. As such, you should not expect them to always agree with you.
At the same time, your must trust your CPA and attorney and keep them fully informed. Find professionals with whom you can feel comfortable discussing the private and personal issues that may relate to your business. Most CPAs and attorneys offer a free initial consultation so that each party can get to know the other and determine whether they are a good "fit."
If you are one of the many people thinking about buying or starting your own business, consulting both a CPA and an attorney before you begin can be one of the most important steps in assuring a smooth-running and profitable business future. Good advice doesn't cost, it pays.
This article provides information of a general nature only and should not be acted upon without seeking appropriate professional advice concerning your specific situation.
© Copyright 1998 Raymond S. Kulzick. All rights reserved. 980525.