In light of some pessimistic job creation statistics in recent months, legislators have begun to look outside the box to help Californians find work. If a new bill passes the state legislature, entrepreneurial training could soon become part of California’s existing job creation initiatives.
According to a recent article in The Sacramento Bee, Rep. Lois Capps, a Democrat from Santa Barbara, recently introduced what she calls the Entrepreneurial Training Improvement Act of 2012. Congresswoman Capps wishes to expand the missions of California’s Workforce Investment Boards so as to include funding for entrepreneurial skills training in addition to the existing placement initiatives for traditional employment.
This state subsidized entrepreneurial training, she says, will foster the creation of new small businesses. In the end, she hopes that the creation of new small businesses could in turn lead to increased job opportunities overall. In theory, as these new businesses expand, new employees will need to pick up the slack, leading to a net increase in overall jobs.
Capps also recognizes a significant side effect of fostering the entrepreneurial spirit: innovation. Whereas in previous years, California’s job placement initiatives would have tried to place creative and self-motivated workers into traditional careers, the new legislation would help promote healthy competition in the marketplace of ideas by giving the self-employed the skills they need to create innovative products and services. The entire community stands to benefit. Suppose just one of these people who would have previously been placed in a traditional job was instead able to create the next big invention or a significant improvement to an existing product or service. Congresswoman Capps would say that it is a possibility worth state funding.
Opponents of the bill say that California would be subsidizing dozens of pipe dreams for every success story, and doing so when the state budget can ill afford to be wasting taxpayer money. Others opponents say that the money will almost certainly be misused for illegal activities. In all likelihood, however, some form of this bill is likely to pass the state legislature.
California small business attorneys are applauding the proposed legislation, but caution entrepreneurs not to start a business without a comprehensive plan in place. Owning and operating a business creates a number of complications. If you are just starting up, you are strongly encouraged to incorporate your California business by filing the appropriate paperwork with the appropriate state agency. A California business lawyer can help you determine which type of corporate entity is right for your new business.
Additionally, starting a business can have drastic tax implications for the business owner. If you are selling goods and services, you will need to collect local sales taxes on your products and file these taxes with the appropriate authorities. Moreover, a business must file an income tax return just like an individual does.
Your business may need to rent or purchase commercial space. If so, a California small business lawyer can help negotiate and prepare a fair lease document or help with the commercial purchase process.
Starting a business can be both exciting and scary. Make sure you have a legal professional on your side to ensure that your business venture is running properly.
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