Often times, business associates feel as if they do not need to have everything in writing. This is particularly true if they have gone into business with friends or relatives. Unfortunately, it is impossible to predict which business arrangements are destined to break down. Businesses co-owned by friends or relatives are just as likely to...
Monthly Archive: June 2014
You registered your business as an LLC. Whew. Now you can relax, right? You no longer need to worry about personal liability from business debts. Unfortunately, it is not that simple. If a creditor is attempting to collect debt from your business but you do not have sufficient assets to satisfy the debt, the first...
“My business is an S-Corporation.” I’ve heard this statement hundreds of times from business owners and entrepreneurs. Even certain literature from our own State of Florida states “An S-corporation is also called a standard business corporation.” Despite the confusion, there is actually no such thing as an S-Corp from a legal standpoint. The confusion sets...
In 2007, Rain, a Korean pop-star, canceled a show in Honolulu just days before the concert was scheduled to occur. After a lengthy jury trial, Rain was found liable for breach of contract and was ordered to pay the Hawaiian concert promoter $5 million in punitive damages, $1 million for damages related to fraud, and...
One of the first decisions you have to make about your new business is to choose your legal structure. Sure, this may not be the most exciting decision ever, but it’s critically important. One common legal structure for small businesses is known as a limited liability company, or an LLC. In this blog entry, we’re...
Working with an independent contractor is an effective way to increase productivity without adding dollars to your payroll. Whether you hire a contractor to perform services outside of your expertise, or to handle a short-term spike in demand, contractors are a popular option for many business owners. Working with an independent contractor, however, can lead...
Most businesses are not blessed with unlimited start-up capital. Due to a tight budget, lack of time, or a myriad of other reasons, business owners often decide to write contracts themselves and hope for the best. While watching every penny is prudent and a responsible way to operate your business, investing resources into your legal...
Starting a business is exciting, and if you’re about to take the plunge, congratulations! However, many business owners get caught up so fully in the excitement of launching, they neglect important steps in the process. The item most often omitted is arguably the most vital – the Operating or Partnership Agreement. Even though it may...