For many, a singular cost of doing business in California

On Behalf of | May 10, 2016 | Business Formation & Planning |

A compendium of concerns.

Or, perhaps, a deep basket of considerations.

However termed, it is truly a play book full of things that virtually any California business owner or manager is necessarily focused upon every day of the week.

The business world is robust and challenging. It rewards the smart and prepared and makes short shrift of those who underestimate its challenges.

And those challenges are indeed many, ranging from initial formation decisions, employment disputes and financing matters to construction concerns, contract snafus, dispute resolution mechanisms and other details across a veritable sea of possibilities.

Arguably, too, there is one additional concern that looms especially large for California business principals compared with their peers in other states.

That is environmental regulation, which affects Californians in an outsized and singular way. Of course, other states, too, have environmental legislation on the books, but California easily qualifies as a special case among all American states, with an acknowledged vanguard status for identifying environmental concerns and dealing with them through statutory policies and guidelines.

And that affects businesses, often in the most fundamental sense.

The balancing act between environmental edicts and business sustainability is prominently noted in a recent media report spotlighting an impending environmental law that many business owners say could create onerous financial challenges.

That legislation is slated to take legal effect from the first day of next year, being applicable to every commercial landlord and business principal (as well as to residential homeowners) who undertake so-called “major renovations” in building structures. In order to comply with exacting greenhouse-gas emission standards, select improvements will need to allocate more money toward higher-efficiency walls, attics, roofs, cooling systems, windows, appliances and so forth.

Understandably, many business owners worry about the costs involved in that, even while state authorities are trying to assuage their concerns.

The new law certainly does underscore the reality that environmental laws and policies are of central importance to California business planners.

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