During the Great Recession, many small business owners struggled to make ends meet. Many had to close their doors. Today, things look very different. In fact, small businesses have been a major contributor to the nation’s recovery, and most are seeing record profits. Sadly, financial experts believe there could still be trouble on the horizon. Learn how you can safeguard your company against some of the challenges that may arise over the next few years, and discover how a seasoned small business lawyer can help with the process.
Record Profits for Small Businesses Across the Nation
According to the new Small Business Optimism Index, published by the National Federation of Independent Business, small businesses are experiencing record profits, nationwide. What is more, the reporting of poor sales has fallen to a near record low. Sadly, there are some concerns over whether this trend will continue, especially in Illinois, where business taxes may soon increase, thanks to the state’s massive debt level. For smaller companies, the increase could be especially crippling, as many are pass-through entities, meaning they pay taxes out of their own personal income.
To make matters worse, there are politicians who want to increase the state’s minimum wage to $15 an hour over the next few years. That is an increase of about 70 to 80 percent in wages; few small businesses could handle such a hike. In fact, those in Cook County, where the minimum wage is $13 an hour, are already struggling, yet it is likely only a matter of time before the increase occurs state-wide. Thankfully, it is possible to start mitigating against the challenges now, long before they are approved.
Preparing Your Small Business for Potential Tax and Wage Increases
While there is little that a small business can do to avoid the tax and wage hike issues, there are ways to prepare for the challenges that may arise because of them. First, the business can have a financial expert examine their books to look for any potential cut-backs. Second, small business owners can seek the aid of a lawyer. The benefit here is that a lawyer can examine the company for vulnerabilities like confusing verbiage in their employment contracts or company policies. As such, the business can reduce their risk of a wrongful termination or discrimination lawsuit, which could completely bankrupt them if the taxes and wages do increase.
Contact Our Wheaton Small Business Lawyers
At Stock, Carlson, Oldfield & McGrath, LLC, we understand the challenges that small businesses face because we are a small company ourselves. Backed by more than 40 years of experience, our seasoned Wheaton small business lawyers also have the knowledge and foresight to assist you in preparing for the possible challenges ahead. Start by scheduling a personalized consultation. Call our offices at 630-665-2500 today.