Temporary workers play an important role in many companies. Are they right for your small business? Check out these pros and cons of hiring a temp.

Temporary workers make up a big part of the workforce in the U.S. How big? According to the American Staffing Association (ASA), U.S. staffing companies employed an average of 2.2 million temporary and contract workers per week in the fourth quarter of 2024.

The use of temporary help has enjoyed an upward growth ever since entrepreneur William Russell Kelly opened the first temporary staffing agency in 1946. Today Kelly Services is one of many staffing services and has long done away with its “Kelly Girl” clerical temp image. Like most present-day agencies, its positions are no longer limited to secretaries and file clerks and women.

Temp workers currently possess a myriad of other titles, including accountants, financial officers, assembly-line workers, nurses, doctors, scientists, lawyers, and information technology professionals. 

Should your business hire temporary help? 

To find out, check out these pros and cons of hiring a temp. You may just find that this hiring arrangement is something that is well-suited for your business right now or something that you’ll want to seriously consider in the future. 

RELATED: 7 Inexpensive Ways to Retain Employees in Your Small Business

Reasons for Hiring Temps 

There are a number of reasons why it’s wise to hire a temp instead of a full- or part-time worker. Here are some of the pros:

1. Enables your business to adjust more easily and quickly to workload fluctuations

Temporary help agencies can quickly provide your business with qualified staff. Some common reasons companies hire temps:

• Employee absences: illness, vacation, maternity or disability leave, sudden departure
• Unexpected or temporary demands: special projects, seasonal or peak periods, employee shortages

2. Maintains staffing flexibility

With the popularity and staying power of flexible work arrangements, employers need to stay current with the needs of today’s workforce. Hiring temps is just one of the ways that businesses can offer flexibility and, at the same time, better meet their own needs.

Denise Ridenour of Kelly Services foresees that “the employment pool will increasingly include a mix of temporary and full-time employees. The result is a more efficient workplace, a more flexible job market, and greater opportunities for both employers and employees. Additionally, improving productivity enhances a company’s bottom line and employee job security.”

3. Lets your business evaluate a worker without commitment

Based on your evaluation or preferences, you can employ a temp for a designated short-term position or, if desired, offer a full-time position to a worker who suits your business. Some businesses employ temporary workers as an excellent and cost-efficient way to recruit and test the abilities of new workers before signing them on full-time.

Other companies will repeatedly use the services of a temp worker who has proven to be a company asset. Hiring a temp can also be a good way to continue getting work done while you search for the perfect candidate for a particular job. If unsatisfied with a temp’s work performance, all you need do is contact the temp agency, and they will take care of the rest.

4. Can save time and money

The cost of hiring temp workers is often cheaper than the cost of hiring permanent employees with benefits. In the short term, it’s generally more cost-efficient to hire a temp. For jobs that are expected to last six months or longer, it may pay to hire a full-time employee.   

RELATED:  How to Find Employees for Your Small Business

When you employ an agency, it — not you — becomes the temp worker’s employer. The agency is responsible for and bears the financial burden of recruiting, screening, testing, and hiring workers; payroll expenses and paperwork; payroll and withholding taxes; unemployment and workers’ compensation insurance; and any employee benefits they may wish to provide. Some agencies even provide training such as software application tutorials.

Temporary Staff, Permanent Protection

As the American Staffing Association data reveals, with an average of 2.2 million temporary and contract workers employed, temporary staffing provides businesses with valuable flexibility and cost efficiency.

When weighing these staffing options, it’s worth considering your overall business structure, too. Forming an LLC offers liability protection and tax flexibility that complement smart staffing decisions. The right combination helps your business adapt while maintaining appropriate protections.

You’ve finally found the perfect location for your new business. Before you sign a lease, remember that no matter how friendly your prospective landlord seems, the lease is not likely to be in your favor. Here are some important points to consider before signing a commercial lease.

After you’ve found a location for your brick-and-mortar store, next comes the negotiation and signing of one of the most dreaded legal documents any entrepreneur will ever face: the commercial lease (insert scary music here).

Before we dive in, understand these points: There’s no such thing as a lease that’s in favor of the tenant. Trying to break a lease is like trying to sweet-talk your way out of Alcatraz. Landlords are your best friends until you miss a rent payment or two.

Chances are that when you find your perfect space, the landlord will just happen to have a lease in his back pocket that “all his tenants have signed without a problem.” Chances are he’ll hold the lease with one hand and a pen filled with your blood in the other. Chances are he’s banking on you signing the lease without bothering to read it, which many of his tenants have probably done in the past. I hope the chances are you’re much too smart to do so.

I don’t care how many people he says are lined up to rent the space; you should take the lease home and take all the time you need to review it thoroughly before putting your name on the dotted line. Trust me — if the space was that hot, it would be rented already, so don’t let anyone pressure you into acting too quickly.

Even if you read every word of the lease yourself, have an attorney give it a second look because a lease is a legal document and, as such, is written in a language mere mortals rarely understand.

Forget reading the fine print. When it comes to a lease, it’s ALL fine print, and you should always get a more experienced pair of eyes to go over the details.

Here are a few other things to consider before signing a lease.

How is the monthly lease payment calculated?

The most basic equation for calculating a lease payment takes the number of square feet times the cost per square foot and then amortizes that over a 12-month span. For example, if you have 1,000 square feet and the cost per square foot is $12, the annual lease amount would be $12,000. Divided by 12 months, the monthly lease payment would be $1,000. Again, this is a simplified scenario. These days, most commercial leases include additional factors that affect the final price, such as a monthly percentage of your gross sales, property tax, rent increases, operating expense escalations, common area charges, etc.

Who is responsible for paying what?

It’s important that you understand exactly what you’re paying for and what expenses the landlord will cover. Are you responsible for any costs other than the rent? Are you responsible for paying for your own utilities and garbage pickup, for example? Will you have to pay for window washing and janitorial services? Who pays for repairs if the air conditioner goes on the fritz? Chances are you do. It’s good to understand that ahead of time.

Can the monthly payment go up at any time?

It’s typical for a lease to contain what’s known as an “escalation clause” that allows the landlord to pass on increased building operating expenses to the tenants. If your lease contains such a clause, you should ask for a cap on the amount the lease payment may rise over a given period of time and an accounting of the items that are forcing the increase.

Will my rent increase every year?

One very important factor to know is if, when, and by how much your rent might go up over the term of the lease. It’s expected that rents will increase as property values increase, so most leases include a rent increase on the anniversary date of the lease.

Plus, if your landlord can rent the space for more than you agreed to pay a year ago, they’re within their rights to ask for the increase. However, it would be a nightmare if your rent suddenly doubled. You should negotiate the timelines and amounts of increases before you sign the lease. If your landlord balks at this, find another space.

Is a personal guarantee required?

What happens if your business goes south and you can no longer afford to make the lease payment? Are you responsible for paying the rent out of your own pocket? Probably so. Most landlords insist on a personal guarantee from the owner or an officer of the corporation. This means that even if you go out of business, you’re still on the hook for the remainder of the monies owed.

Finally, be clear on every point in the lease

And if you’re not clear on every point, get clarification from your attorney. Exactly how much space are you leasing? What day of the month is the rent due, and what’s the extra fee if you’re late? Who’s responsible for repairs? What common areas will you have access to? Who’s responsible for maintaining things like keeping the shared restrooms stocked with soap, towels, and, most importantly, toilet paper?

A small detail to consider, except when you suddenly find yourself without such amenities at the wrong time.

RELATED: 14 Questions to Ask Before Signing a Business Lease

Employers have various legal obligations they need to adhere to each day, which can range from OSHA regulations to tax requirements. Running a company can ultimately be a minefield for legal breaches and health risks, which could severely impact your business.

If you want to deal with multiple challenges throughout your company’s lifespan effectively, learn more about the following on-site problems that pose a risk to your employees.

Understanding Workplace Hazards

Workplace hazards are situations or conditions that can cause harm or injury to employees in the workplace. These hazards can be physical, chemical, biological, or ergonomic in nature and can have serious consequences if not identified and addressed. Understanding workplace hazards is crucial for maintaining a healthy work environment. By recognizing and mitigating these hazards, employers can help ensure the safety and well-being of their workforce, thereby fostering a productive and positive workplace.

Types of Hazards in the Workplace

There are several types of hazards that can be present in the workplace, including:

• Safety hazards: These are hazards that can cause physical harm or injury, such as slips, trips, and falls, or being struck by an object.
• Biological hazards: These are hazards that can cause illness or infection, such as exposure to bacteria, viruses, or other microorganisms.
• Chemical hazards: These are hazards that can cause harm or injury through exposure to chemicals, such as toxic substances or flammable liquids.
• Ergonomic hazards: These are hazards that can cause physical strain or discomfort, such as repetitive motion injuries or poor posture.
• Physical hazards: These are hazards that can cause physical harm or injury, such as loud noises, extreme temperatures, or radiation.

Understanding these common workplace hazards is the first step in creating a safer work environment. Each type of hazard requires specific strategies for mitigation and control to help ensure occupational health and safety.

Occupational Safety and Workplace Hazards

Federal law entitles every U.S. employee to work in a safe environment each day. Hazard identification is a crucial step in recognizing and documenting safety risks in the workplace. It is, therefore, a business owner’s responsibility to remove potential safety hazards that could impact a worker’s health and well-being.

For example, if you run a construction firm, you could eliminate slips, trips, and falls by removing debris and unnecessary material on-site. To do so, you may need to rent or buy transfer trucks to collect and dispose of any potentially hazardous materials.

Intoxicated Employees and Workplace Safety

Inebriated employees are not only a danger to themselves, but they can also impact the health and safety of everyone on-site, especially if they’re required to operate heavy machinery, such as a forklift truck, excavator, or drive a company vehicle.

Common signs an employee has been drinking can include:

• A loss of balance
• Slurred speech
• Coordination issues
• Irrational behavior
• The smell of alcohol on their breath

If you suspect an employee has been drinking, you must talk to them in a non-confrontational, calm manner regarding the issue. If they’re intoxicated, you should refer them to an employee assistance program.

You can also prevent staff from driving a company vehicle by introducing an ignition interlock device. Every staff member that sits behind the wheel will need to provide a three-second breath sample to unlock an ignition. It promotes road safety and can prevent accidents.

Lack of Training and Safety Hazards

As mentioned, employers are legally required to provide their teams with a safe environment. That’s why it’s imperative to ensure your staff have the appropriate health and safety training for their roles, which can minimize the chances of a health and safety issue in the workplace.

Sadly, if an employee has not received the necessary training, they could operate heavy machinery that could lead to a fatal or non-fatal injury. Protect your staff at all costs and ensure your business is never liable for compensation by investing your company’s time and money into OSHA and on-the-job training. Conducting regular hazard assessments to identify and assess hazards is crucial.

Creating a Safe Working Environment

Creating a safe working environment requires a proactive approach to identifying and addressing potential hazards. This can involve:

• Conducting regular hazard assessments to identify potential hazards
• Implementing safety protocols and procedures to mitigate hazards
• Providing personal protective equipment (PPE) to employees
• Offering training and education on safety procedures and protocols
• Encouraging employees to report hazards and near-misses
• Maintaining a healthy work environment through regular cleaning and maintenance

By taking these steps, employers can create a safe and healthy work environment that protects employees from workplace hazards and promotes overall well-being. A comprehensive health program and commitment to occupational safety are essential for fostering safe workplaces and ensuring the long-term success of any business.

Conclusion

Running a company is not without its challenges, as business owners will have multiple responsibilities they will need to juggle each day. Yet, few aspects of your business are more important than your employees’ health and well-being.

For this reason, you must aim to create a safe working environment for everyone, tackle individual issues head-on, and provide your team with the appropriate training for their job role.

Business Resources:

FAQ – Federal Tax ID Numbers EIN and FEIN Guide

Generate New Business Ideas for your Next Startup – Business Idea Generator

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You’ve come up with a great name for your product or business, and you want to be sure no one else uses your product or business name. Do you need to get it trademarked? Is registering a trademark something you can do on your own?

Or maybe you’ve just come up with a snappy product name, and you’ve decided you want to trademark it. What should you do next? Is it really as easy as the U.S. Patent and Trademark Office (USPTO) website says it is? Can you really do it without a trademark lawyer?

Understanding the federal registration process is crucial for securing your trademark rights and protecting your brand identity.

We’ll be honest; trademarks can be a bit tricky. In general, it’s helpful to get assistance from a lawyer or trademark filing service even though it’s legal and possible to do it on your own. Here, we’ll walk you through the basics of what a trademark is, the protection it does and doesn’t give you, the gist of the trademark registration process, and more.

Introduction to Trademarks

A trademark is any word, phrase, symbol, design, or combination of these things that identifies a business and distinguishes its products or services from others in the market. Trademarks play a crucial role in protecting a business’s brand identity and intellectual property. By registering a trademark, businesses can prevent others from using similar marks, which can help to build customer trust and loyalty.

Benefits of Trademark Registration

Federal trademark registration offers several benefits to businesses, including:

• Exclusive Rights: Registering your trademark grants you exclusive rights to use the mark in connection with your goods or services, preventing others from using a similar mark.
• Protection Against Infringement: A registered trademark provides legal protection against trademark infringement, allowing you to take legal action if someone uses your mark without permission.
• Increased Brand Recognition: A registered trademark enhances your brand’s credibility and recognition, making it easier for customers to identify and trust your products or services.
• Business Expansion: With a registered trademark, you can expand your business operations and enter new markets with confidence, knowing your brand is protected.
• Enhanced Legal Protection: Registration provides robust legal protection and enforcement options, making it easier to defend your trademark rights in court.

What is a trademark, and why register?

As mentioned above, a trademark is a word, phrase, symbol, design, or combination of these things that identifies and distinguishes the source of goods or services of one party from those of others. Registering a federal trademark for your business name or mark provides you with exclusive rights to use it nationwide in connection with the products and services it’s registered for.

As a trademark owner, you gain the ability to safeguard your business name and other brand elements from unauthorized use. This not only discourages competitors from using your name or creating similar-sounding names to deceive customers but also enhances your brand’s credibility.

The ability to legally use the ® symbol next to your name is another significant advantage. Moreover, having a registered trademark allows you to file a lawsuit in federal court to enforce your trademark rights, providing robust legal protection for your brand.

Who owns a trademark?

Under common law, the person or entity that owns a trademark is whoever uses it first in business, making it an identifiable part of their brand. Trademark owners must also be diligent in maintaining their trademark rights by filing necessary documents and renewals with the United States Patent and Trademark Office (USPTO). The owner could be a sole proprietor, a partnership, a limited liability company, a corporation, or another business structure. But the first person to use it in commerce is, technically speaking, the mark’s owner.

After that definition, you might find yourself wondering if it’s even worth going to the USPTO to get a federal registration for your trademark.

Having a registration certificate from the USPTO (or even your state office) doesn’t grant you ownership of the trademark because you already “owned” it to begin with. A trademark registration simply proves that you own it; if anyone infringes on your name, your registration will give you a resource to pursue legal action against them if needed.

How do I determine if I own a trademark?

Before you get into the registration process, you need to check that you have the right to use the name or mark in the first place. The easiest way to start is by running a trademark search on the USPTO website and checking the trademark office’s database. An internet search is always essential, too. Run a similar check with the state trademark office (or offices if you operate in more than one state). You can also hire a special search company to check through telephone listings, company names, and so on; this is the most thorough option.

These searches won’t guarantee that your name doesn’t infringe on any registered marks, but it’s a crucial step for proper trademark use.

How to Register a Trademark

If you decide to go for a national mark and you want to try to apply on your own, you can go to the U.S. Patent and Trademark Office website and complete the application online through the Trademark Center. As of January 18, 2025, the USPTO has replaced the Trademark Electronic Application System (TEAS) with the Trademark Center, a new online platform for filing trademark applications, paying fees, and tracking application status.

Note that this is the process for applying for federal trademarks. States have their own procedures for obtaining a state trademark, and fees vary by state.

This is a basic breakdown of the federal trademark application process. More details can be found on the USPTO website. As mentioned above, all trademark applications must now be filed through the USPTO’s Trademark Center. This platform allows applicants to:

• Submit new applications
• Pay application-related fees
• Track the status of applications using a docketing feature

The trademark application process involves several steps, including preparing and submitting trademark applications through the USPTO’s online system. After submission, the USPTO will review your trademark application. If the examining attorney raises no objections or if you successfully address any objections, your mark will be published in the “Official Gazette.”

This publication allows any party who believes they may be damaged by the registration to file an opposition or request an extension to oppose within 30 days. Essentially, the notice gives other companies the opportunity to object to a registration that infringes on their own.

If no one raises an objection within 30 days of that publication date and the USPTO determines that your trademark applications are eligible, your application will go through.

Step 1: Confirm availability

Before filing a trademark application, it’s essential to confirm that the desired mark is available for use. This involves conducting a thorough search of existing trademarks, including:

• Online Databases and Search Engines: Check for similar marks using online databases and search engines.
• Social Media Platforms: Search social media platforms to ensure no one else is using a similar mark.
• Trademark Office Databases: Use the trademark office’s databases to search for registered and pending trademarks. This includes checking your state’s trademark database for state trademarks.
• Industry-Specific Directories: Look through industry-specific directories to ensure your mark is unique within your field.

To do a more thorough search, some businesses hire a trademark attorney or trademark search company to conduct the search for them, though this can be expensive.

By confirming availability, businesses can avoid potential conflicts and help ensure that their mark is unique and distinctive.

Step 2: Prepare and file the trademark application

Once availability is confirmed, the next step is to prepare and file the trademark application. This involves:

• Gathering Required Documents and Information: Collect all necessary documents and information needed for the application.
• Completing the Trademark Application Form: Fill out the trademark application form accurately and completely.
• Paying the Filing Fee: Pay the required filing fee for the application.
• Submitting the Application to the Trademark Office: Submit the completed application to the trademark office.

Note that this is the process for applying for federal trademarks. States will have their own processes for getting a state trademark.

This is a basic breakdown of the trademark application process. More detailed information is available at the USPTO website. As we mentioned earlier, the Trademark Center is where you can file a new trademark application, pay application-related fees, and use the docketing feature to track the status of applications filed through the Trademark Center.

It’s recommended to work with a trademark attorney or trademark filing service to help ensure that the application is accurate and complete.

Step 3: Respond to trademark office actions

After filing the trademark application, the trademark office will review the application and may issue office actions. These actions may include:

• Requests for Additional Information or Clarification: The trademark office may request more information or clarification about your application.
• Objections to the Mark or Application: The office may raise objections to the mark or the application itself.
• Requirements for Amendments or Corrections: You may be required to make amendments or corrections to your application.

Businesses must respond to these actions in a timely and effective manner to help ensure that the application process moves forward.

Trademark Office Review and Approval

Once the trademark application is complete and all issues have been resolved, the trademark office will review and approve the application. This may involve:

• Examining the Mark for Distinctiveness and Uniqueness: The trademark office will examine the mark to ensure it’s distinctive and unique.
• Verifying the Accuracy of the Application and Supporting Documents: The office will verify that the application and supporting documents are accurate.
• Ensuring Compliance with Trademark Law and Regulations: The application must comply with all relevant trademark laws and regulations.

If the application is approved, the trademark office will issue a registration certificate, which grants the business exclusive rights to use the mark.

Trademark Classes and Fees

When registering a trademark, it’s important to understand the concept of trademark classes. If your name is used for more than one type of goods or services, you may need to register it in multiple classes. Each class represents a category of goods or services, and registering in multiple classes requires additional fees.

The USPTO charges a flat fee of $350 per class of goods or services for all trademark applications filed through the Trademark Center. As of January 18, 2025, the TEAS Plus and TEAS Standard filing options have been eliminated, and all applications now follow a single Base Application Fee structure.

Additional Surcharges:

• $100 per class for applications missing required information
• $200 per class for using free-form descriptions instead of pre-approved ones
• $200 per class for exceeding character limits in specific fields

These fees are non-refundable, so it’s crucial to ensure that your application is complete and accurate before submission.

How long should I expect the trademark application process to take?

The USPTO trademark application process can be lengthy, even if everything is completed correctly.

• Standard Timeline: If there are no objections or office actions, the process typically takes 12 to 18 months from the initial filing to final registration.
• Delays: If the USPTO examining attorney requests additional information or if another party files an opposition, the process can extend beyond two years.

Applicants should regularly check the status of their application through the Trademark Center docketing feature to stay informed of any updates or required actions.

In most cases, when your federal trademark is approved, you would be protected against anyone in the United States using your product or service name on a similar product.

Unfortunately, it’s not always the case that your application for trademark registration goes through quite this easily. Often, when the examining attorney reviews an application, they may ask for more information, such as a rewrite of your statement of use. They might ask for a different sample of your mark instead, or someone might object to your mark. These sorts of cases can take much longer.

Can I go without a federal registration for my trademark?

Federal trademark registration is not legally required, but it offers stronger protection than common law rights.

• Common Law Protection: If you were the first to use a mark, you technically own it. However, without a federal registration, you must prove prior use in a legal dispute, which can be challenging. You can sue someone for trademark infringement if they copy your name for a similar product. But without registration, the court battles can be trickier. You’d have to clearly prove that you were the first to use the mark. But if you registered, you’d have proof, giving you more robust trademark protection.
• Federal Registration Benefits: A registered trademark gives you nationwide rights, appears in the USPTO database (which discourages others from using similar marks), and allows you to enforce your trademark in federal court.
• State vs. Federal Registration: A state trademark only protects your brand within a single state, while a federal trademark protects your brand nationwide. A state trademark is simpler, quicker, and less expensive to get. The protections of a state registration are pretty good, but they apply only within the confines of your state. What happens when you border another state? What if someone just over the way starts using your product name for a similar product? It’s rather difficult to limit your “territory” in the days of the Internet and easy transportation. Again, a national trademark would definitely make your life easier.

Please note that you can also register your mark internationally once your company grows to the extent that you are trading overseas. If you go the foreign registration route, it’s highly recommended to work with an experienced trademark attorney.

Do I need to hire a trademark attorney to help me with my trademark registration?

Since a trademark application is pretty complicated, it’s generally recommended to work with an attorney or a trademark filing service. The trademark application process can be complex, making it beneficial to work with an attorney. But it’s not legally required to hire an attorney if you’re domestic to the United States or its territories.

That said, foreign applicants are required to hire a licensed attorney. They’ll represent you at the USPTO.

Maintaining Your Trademark Protection

To keep your federal trademark registration active, you must file periodic maintenance documents with the USPTO:

• Between the 5th and 6th year: File a Section 8 Declaration of Use to confirm that the trademark is still in active use.
• Between the 9th and 10th year: File both a Section 8 Declaration of Use and a Section 9 Renewal Application to renew the trademark for another 10 years.
• Every 10 years thereafter: File a Section 9 Renewal Application to keep the trademark valid.

Updated 2025 Renewal Fees:

• Section 8 Declaration of Use: $325 per class
• Section 9 Renewal Application: $325 per class
• Combined Section 8 and 9 Filing: $650 per class

Failure to file these documents on time may result in your trademark being canceled or marked as abandoned.

Filing these renewals helps prove that you are still using the mark in commerce. Remember that usage is what gives you “ownership” of the mark in the first place, so it’s important to prove that you’re using it.

If you fail to file a statement of use or an extension request within six months from the date the notice of allowance was issued, your application will be considered abandoned. In such cases, you can file a petition to revive the application within two months of the abandonment date. Staying on top of these requirements helps ensure that your trademark remains protected and enforceable.

Running a small business is no small feat, and staying on top of regulatory changes is crucial for staying compliant and operating efficiently. As we head into 2025, our CEO Ross Buhrdorf highlights several regulatory shifts set to significantly impact small business owners. We’re here to help break down the complexities of these changes and provide simple steps you can take to stay ahead of the curve. Let’s explore the key changes to watch for and how to prepare your business.

New Reporting Requirements for Payment Platforms

Starting in 2025, third-party settlement organizations, such as CashApp, Venmo, PayPal, and Airbnb, are required to report transactions for goods or services where the total payments received are more than $2,500, down from $5,000 in 2024. Starting in 2026 and beyond, the threshold will be lowered to $600.

Why Transaction Reporting Matters for Your Business:

• If you use these platforms to accept payments for your business, these transactions will now be reported directly to the IRS.
• This means more scrutiny during tax season, and any unreported income could result in penalties or additional taxes.

What can you do?

• Track Your Payments: Ensure you’re keeping detailed records of all transactions on these platforms. This will help you verify accuracy and avoid discrepancies.
• Revisit Your Accounting Practices: If you’re not already using accounting software, now is the time to invest in one that integrates with these platforms for seamless tracking.
• Seek Professional Advice: Consult with a tax professional to understand how these changes affect your tax obligations and ensure compliance.

State-Level Overtime and Minimum Wage Changes

Labor laws are evolving at the state level, with many states implementing new minimum wage rates and overtime rules in 2025. For example, the California minimum wage will increase to $16.50 per hour for all employers. In New York, overtime eligibility thresholds are changing, expanding the number of employees entitled to overtime pay.

Why State-Level Wage Changes Matter:

• These changes can significantly impact your payroll costs and overall budget.
• Non-compliance with labor laws can lead to costly fines and damage your business’s reputation.

What can you do?

• Audit Your Payroll: Review your current wage and hour policies to ensure they align with your state’s requirements.
• Budget for Increases: Anticipate higher payroll costs and adjust your financial planning accordingly.
• Educate Yourself and Your Team: Stay informed about labor laws in your state and train your management team to comply with new regulations.

The Impact of Tariffs on Small Businesses

Tariffs continue to pose challenges for small businesses, especially those relying on imported goods or engaging in international trade. In 2025, new tariffs and adjustments to existing ones could drive up costs for essential supplies and products.

Why Tariff Laws Matter:

• Tariffs can increase the cost of goods, forcing businesses to either absorb the costs or pass them on to customers.
• Unpredictable trade policies make it harder to plan long-term pricing strategies.

What can you do?

• Diversify Your Supply Chain: Reduce dependency on imports by exploring domestic suppliers or alternative markets.
• Review Your Pricing Strategy: Adjust your prices thoughtfully to maintain profitability without alienating your customers.
• Stay Updated: Keep track of trade policy announcements and be ready to adapt your business strategies as needed.

Key Takeaways and Next Steps 

Regulatory changes can feel overwhelming, but proactive planning will keep your business protected. Here’s a quick recap of how to stay ahead:

• Prepare for New Payment Platform Rules: Keep meticulous records, use accounting tools, and consult tax professionals.
• Adapt to State Wage and Overtime Changes: Audit your payroll, plan for increased costs, and stay informed.
• Mitigate Tariff Impacts: Diversify suppliers, adjust pricing strategies, and monitor trade policies.

We’re here to help you navigate these changes with confidence. From compliance guidance to tools and resources tailored for small business owners, we’ve got your back. Let’s tackle 2025 together and set your business up for success!

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There was a time when entrepreneurs and small business owners were able to negotiate commercial leases without a personal guarantee. Landlords were often willing to forgo a guarantee in exchange for higher rents, longer lease terms, or larger common area maintenance (CAM) fees. But now, when leasing commercial space, the times are changing.

Landlords, like banks, think in terms of “reasonable risk.” If your business fails and defaults on its lease, then your landlord is liable for the balance. Recently, hard times for the commercial real estate market have caused landlords to reconsider what constitutes a reasonable amount of liability.

Across the country, from New York to California, skittish landlords are demanding personal financial guarantees from business owners, even if the business in question has been organized as a limited liability company (LLC). And even if you have a strong record of repayment and your business is in the black, a landlord may require a time-limited guarantee in order to reduce their own financial risk.

If your landlord absolutely will not budge, then it may be possible to negotiate the terms of your guarantee to limit its impact on your personal finances, your business’s operational capacity, or both. Here are some options for finding a compromise that satisfies your landlord while protecting your personal assets.

Understanding Commercial Leases

A commercial lease is a legally binding contract between a landlord and a business tenant that outlines the terms and conditions of renting a commercial property. Unlike residential leases, commercial leases can be more complex and involve extensive negotiation. As a business owner, it’s crucial to understand the intricacies of these agreements to help ensure you’re securing the best deal for your business.

Key elements of a commercial lease agreement include the rent amount, security deposit, lease duration, and any additional costs the tenant may incur. For instance, some leases may require the tenant to cover maintenance or utility expenses. Being well-versed in these terms can help you avoid unexpected costs and ensure that the lease aligns with your business needs.

Types of Commercial Leases

Commercial leases come in various forms, each with its own set of characteristics. Understanding these types can help you choose the best option for your business:

• Gross Lease: In a gross lease, the landlord covers all property-related expenses, including utilities, insurance, and maintenance. This type of lease offers simplicity, as the tenant only needs to pay a fixed rent amount.
• Net Lease: A net lease requires the tenant to pay a base rent plus additional expenses such as utilities, insurance, and maintenance. This type of lease can be further divided into single, double, or triple net leases, depending on the number of expenses the tenant is responsible for.
• Modified Gross Lease: This lease combines elements of both gross and net leases. Typically, the tenant and landlord share the property expenses, making it a flexible option for both parties.
• Percentage Lease: In a percentage lease, the tenant pays a base rent plus a percentage of their gross income. This type of lease is common in retail spaces where the landlord benefits from the tenant’s business success.

Negotiating the Terms of Commercial Lease Agreements

Just because your landlord is demanding a guarantee doesn’t mean that you can’t negotiate a creative, mutually beneficial lease.

• Request a time-limited guarantee. Ask your landlord to reduce the period covered by the personal guarantee to one or two years rather than the entire term of the rental. Most unsuccessful businesses fail within the first two years, so it’s entirely reasonable to request that your guarantee expires after 18, 24, or 30 months, provided that all other payments and fees are up to date.
• A landlord may be willing to accept a so-called “good guy” guarantee. This agreement holds the guarantor liable until the tenant has lawfully left the premises (see our guarantor definition guide for more information on this term). This protects the landlord from “cut-and-run” defaulters. If your business is failing, or if you need to relocate to another space, the landlord agrees not to enforce the guarantee, provided that you pay your rent until the agreed-upon departure date.
• It’s wise to ask that your guarantee be waived upon transfer of the lease. If you sell your business to a new operator, or if your landlord transfers ownership or management of the space to a new lessee, then you don’t want to be stuck guaranteeing anything!

Key Terms to Know

When negotiating a business lease, it’s essential to understand the key terms and conditions to protect your interests:

• Rent: The monthly payment the tenant makes to the landlord for occupying the commercial space. It’s crucial to ensure the rent amount is sustainable for your business.
• Security Deposit: A deposit paid by the tenant to secure the lease. This amount is typically refundable at the end of the lease term, provided there are no damages or unpaid rent.
• Lease Duration: The length of time the tenant has the right to occupy the property. Lease terms can vary, so it’s important to choose a duration that aligns with your business plans.
• Tenant Improvement Allowance: A sum of money provided by the landlord to cover the cost of improvements to the property. This allowance can help you customize the space to meet your business needs.
• Personal Guarantee: A clause that holds the business owner personally responsible for fulfilling the lease obligations. Understanding this term is crucial, as it can impact your personal finances.

Resolving Disputes

Disputes can arise during the term of a commercial lease, and having a plan in place for resolving them is essential. Common disputes include disagreements over when and how you pay rent, property use, and lease termination. To resolve these issues, consider the following strategies:

• Negotiation: Open communication with your landlord can often resolve disputes amicably. Discussing the issue and finding a mutually beneficial solution can prevent escalation.
• Mediation: If direct negotiation fails, mediation can be a valuable tool. A neutral third party can help facilitate discussions and guide both parties toward a resolution.
• Legal Assistance: In more complex or contentious disputes, hiring a commercial real estate attorney can provide the expertise needed to protect your interests and navigate the legal aspects of the dispute.

Is it still possible for a business owner to avoid a personal guarantee?

So the question still remains… Is it possible to negotiate a true no-personal-guarantee business lease? Absolutely! But it’s not easy. For first-time entrepreneurs, a personal guarantee may be unavoidable, but if your business has a demonstrable record of repayment, adequate capital, and a strong balance sheet, you may be able to convince a landlord to waive the guarantee entirely.

Typically, a landlord will ask that you offer a retainer or a larger security deposit in lieu of a personal guarantee. The down side? This means tying up cash that could otherwise be accumulating interest.

You need to keep your balance sheet in mind and make sure that a cash deposit will not undercapitalize your business. The number one reason why unsuccessful small businesses fail? Insufficient working capital. If possible, it’s always best to offer non-cash corporate assets — equipment, for instance — as collateral rather than a cash deposit.

When all is said and done, your peace of mind is invaluable. As the business owner, you need to be able to objectively appraise your business, make decisive decisions, and stand behind your choices.

Seeing clearly and acting with certainty will always be more difficult when your personal wealth and personal assets (and, by extension, the financial security of yourself and your loved ones) are at stake. In the end, you may decide that it’s best to sacrifice a small amount of working capital for the sense of well-being afforded by a no-personal-guarantee loan.

Working with a Commercial Real Estate Attorney

Navigating the complexities of a commercial lease agreement can be challenging, which is why working with a commercial real estate attorney can be invaluable. These professionals offer several benefits:

• Expert Knowledge: Attorneys have a deep understanding of commercial lease agreements and can help you comprehend the fine print.
• Negotiation Skills: An attorney can negotiate favorable terms on your behalf, ensuring the lease aligns with your business needs.
• Representation: During lease negotiations, having an attorney represent your interests can provide peace of mind and ensure a fair outcome.
• Dispute Resolution: If disputes arise, an attorney can offer guidance and representation, helping you resolve issues efficiently and effectively.

By partnering with a commercial real estate attorney, business owners can secure the best possible lease terms and avoid potential pitfalls, helping their business thrive in its new commercial space.

One of the most frustrating things I encountered back when I practiced law was just how often I would see small business owners in my office, in trouble, because they had bad information.

Example: One fellow decided that, in order to be friendly, he would ask job candidates about their holiday plans — “So, what are your family Christmas traditions?” or “Hanukkah eh? That’s interesting. How do you celebrate that exactly?”

Now, I knew the guy. He didn’t have a malicious bone in his body. But the Christian woman who didn’t get the job didn’t know that; she was convinced that she wasn’t hired due to religious discrimination. Even though she was incorrect, she seemingly had “proof.” It cost my client a pretty penny to learn the hard way that you cannot ask religious questions when hiring.

That experience is but one reason why the most recent ComplyRight National Small Business Compliance Pulse Survey is so interesting. The survey surveyed owners, CEOs, and others charged with handling HR responsibilities at 300 small businesses (five to 100 employees) across the U.S. One of the first things that jumped out at me was that less than half of the small business owners surveyed said that they were “very confident” that they were aware of all federal, state, and local labor laws that could affect their businesses.

That’s really dangerous because the fact is, what you don’t know can hurt you.

And, what’s worse is that when they do want to learn more about employment law, small business owners often turn to sources that are not always the best:

• First, the survey found that entrepreneurs look to written notifications from federal and state agencies. The problem with this is that agencies rarely provide such notifications or updates.
• Next, small business owners look to their own lawyers, accountants, or other business advisors. The problem here is that many of these advisors have limited knowledge of labor laws due to the complexity and rapidly changing nature of the beast.
• Finally, respondents reported that they rely on the knowledge of friends and colleagues. No commentary is even necessary here.

So, the situation is this: Even though we’re in an era of increasing employment law intricacies, a time of ever-changing state, local, and federal regulations, many small business owners have no set processes in place for staying up to date with those changes, let alone learning what it is they need to know.

But even so, at least they have state-of-the-art processes for managing their HR issues, right?

If only.

Get this: Almost half of the small business employers surveyed (46%) rely on “pen, paper, and sticky notes” for their HR process. Indeed, only 17% have invested in contemporary HR systems — technology that can manage HR-related information in one place with one program. The problem with an analog process in a digital world is that not only can this lead to significant legal and financial problems, but it also translates into stress and reduced productivity among the employees who are managing compliance.

So, the question is this: What should small business owners and office and HR managers do to manage all of these regulations such that they are never forced to sit across from their own lawyer, lamenting their lack of HR savviness?

I would suggest that the best practice is actually fairly simple:

1. Take time to investigate, and invest in, up-to-date technology and processes such as web-based HR solutions
2. Choose compliance-minded vendors and partners who fully understand the importance of labor law regulations
3. Protect your company by regularly updating employee policies to cover and address new developments that have a direct impact on the business and employees

A well-structured HR system, supported by comprehensive HR services, can help you attract and retain top talent, improve employee performance, and create a positive company culture.

The bottom line is that the smart small business owner will invest in modern HR solutions, knowing that, in reality, it doesn’t cost; it pays.

The Importance of HR in Small Businesses

Human resources (HR) plays a vital role in the success of small businesses. As a small business owner, managing HR tasks can be overwhelming, especially when you’re already handling multiple responsibilities. However, neglecting HR can lead to decreased employee morale, increased turnover rates, and even legal issues. A well-structured HR system can help you attract and retain top talent, improve employee performance, and create a positive company culture. By investing in HR, small businesses can help ensure that their employees are motivated, productive, and aligned with the company’s goals.

Building a Strong HR Foundation

Building a strong HR foundation is crucial for small businesses. This involves creating a comprehensive employee handbook that outlines company policies, procedures, and expectations. It’s essential to include information on employee benefits, compensation, and performance management. A well-written employee handbook can help prevent misunderstandings, reduce conflicts, and help ensure compliance with federal employment laws. By clearly communicating what’s expected of employees and what they can expect in return, small businesses can foster a transparent and fair working environment.

HR Compliance and Risk Management

HR compliance and risk management are critical aspects of HR management. Small business owners must ensure they comply with federal employment laws, such as the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA). Failure to comply can result in costly fines and penalties. HR professionals can help small businesses navigate complex employment laws and regulations, reducing the risk of non-compliance. By staying informed and proactive, small businesses can protect themselves from legal issues and create a stable and compliant workplace.

Performance Management and Employee Growth

Performance management and employee growth are essential for small businesses. Regular performance evaluations can help identify areas for improvement, provide feedback, and set goals for employee development. HR professionals can help small businesses create a performance management system that rewards employees for their achievements and provides opportunities for growth and development. By focusing on continuous improvement and recognizing employee contributions, small businesses can boost morale and drive long-term success.

Company Culture and Employee Well-being

Company culture and employee well-being are critical components of HR management. A positive company culture can improve employee morale, increase productivity, and reduce turnover rates. HR professionals can help small businesses create a more inclusive workplace culture that promotes employee well-being, diversity, and inclusion. This can include offering competitive benefits packages, providing employee training and development opportunities, and promoting work-life balance. By prioritizing employee health and well-being, small businesses can create a supportive and thriving work environment.

Steve Strauss is a senior small business columnist at USA Today and author of 15 books, including The Small Business Bible.