Top,Ten,Legal,Concerns,Busines law Top Ten Legal Concerns Business Owners Need To Know Now!

Bankruptcy is a situation, wherein an individual is termed as unable to discharge all the debts. When a person or a company is not able to pay off its creditors, it has an obligation to file a bankruptcy suit. In fact, a bankruptcy suit is a When you work with an attorney, you will have no problem reducing the risks associated with getting your case in front of a judge and jury, or other formal court, when you need to. However, every case is different. It is important to work wi

You know the importance ofhaving your legal affairs in order, but there aren't enough hours in the day todo it all, or perhaps there isn't enough money to pay a professional to handlethose matters. Many entrepreneurs andbusiness owners face this challenge. But it is crucial to address certain legalconcerns so that you can remain in business and do so successfully. Here aretop concerns you need to know and address... right now! This is not acomprehensive list, and all may not apply to you, but they are general concernsto be considered. 1. Choosing the Right BusinessStructure. There are four (4) basic structures - the sole proprietorship,general partnership, corporation and limited liability company (LLC). The riskieryour business, the more you need to shield yourself from personal liability forany debts or wrongdoings of the business. Operating your business as a sole proprietorshipor general partnership means that you may be personally responsible for claimsbrought against your business or for paying its debts. One lawsuit coulddestroy your business. Carefully consider the pros and cons of each structureand determine which one works best for your business. 2. The importance of goodlegal record keeping. Maintaining good records is a must, particularly with acorporation which is legally required to keep strict records of meetings andother actions required to be taken by its Board of Directors or shareholders.The failure of a corporation to keep adequate records could mean that its"corporate veil" is "pierced" and essentially the corporatestatus is negated. A third party bringing an action against the corporation maybe successful in attacking the personal assets of the shareholders, and in somecases, those of the directors or officers. 3. Entering into FormalAgreements with Co-Owners. So many people are in business with others - familymembers, close friends or business associates and without a formal agreement.This is a MUST, regardless of the relationship. The reality is that businessrelationships don't always go as planned and owners may need to 'divorce.'.Without an agreement which makes it clear as to the ownership interest eachperson has, how and if interests may be transferred, the duties of each ownerand terms of any non-compete clause, the departure of an owner or dissolutionof the business can be difficult and costly. 4. Entering into FormalAgreement with Third Parties. Failing to document business arrangements inwriting has been the downfall of many businesses. Common agreements include (i)consulting agreements with agents acting on behalf of the business; (ii)employment agreements for key officers; and (iii) non-disclosure agreements topreclude third parties from disclosing confidential information about yourcompany. Also consider agreements that prohibit consultants or employees fromcompeting against the business and/or soliciting agents or employees of thebusiness (or include such provisions in an existing consulting or employmentagreement). Without a non-compete or non-solicitation agreement or provision, abusiness could lose a significant of business to someone who has gainedknowledge of your business and the specific industry and then snatched yourclients and trusted employees/agents. 5. Labor and employment. Inorder to avoid issues with the Internal Revenue Service (IRS), be clear as towhether someone working for you needs to be classified as an employee, orwhether they are a consultant. The general test is whether the person isinstructed by the company as to when, where and how to work. In some cases, theIRS has fined a company for not properly classifying a worker as an employeeand back employment taxes are imposed, resulting in a great financial burdenfor the business. The possibility also exists that a claim may be brought byconsultants who then maintain that they are employees and are legally entitledto certain benefits such as workmen's compensation or unemployment insurance. 6. Entering into a Commercial lease.If you operate your business outside of your home, it is best to have a writtenagreement to ensure business continuity. Negotiate the right lease term, rentamount, etc. Without a written agreement you run the risk of the landlordasking you to leave even if you are a good tenant, and generally with justthirty (30) days notice. This could result in a significant loss of businessincome - having to move could mean the loss of good clients and a seriousbusiness interruption until a new space is secured. 7. The impact of taxes on yourbusiness and its owners. The four basic business structures all have differenttax consequences and could therefore affect your bottom line differently.Discuss the tax reporting of each, and how each relates to your personalfinancial situation, with your tax advisor. 8. Raising Capital to GrowYour Business. Many business owners seek to grow their business through equityofferings to investors. Ascertain the types of documents required to beprovided to potential investors to ensure compliance with federal and statesecurities laws, and to ensure that proper manner of soliciting investors. 9. Buying or Selling aBusiness or Assets. Conduct due diligence if you decide to sell your businessor a significant amount of its assets or intend to buy another business. Evaluateall problems you may inherit if you are buying a business, such as pendinglawsuits or outstanding debt. 10. Protecting IntellectualProperty. If your business uses a trademark or service mark, protect it againstall others by filing an application with the U.S. Patent and Trademark Office.Similarly, confirm that you are not using a name that legally belongs tosomeone else, which could mean infringement, and a successful lawsuit broughtagainst your company. This could be catastrophic to your business.