Every corporation is considered to be a legal entity, and there are certain situations in which you may need legal advice for your business. Here are some of the most common times when you may need to consider hiring a lawyer for your business:
Incorporating a new business can be complex. There are all sorts of applications to be completed and regulatory requirements that you must be aware of. You may also have to apply for various licenses to operate your business. A corporate attorney can help you to navigate the incorporation process.
2. Employment Disputes
There may be times when you have disputes with an employee or staff member over a termination or benefits, or you may just have questions over a possible employment contract that you want to offer someone. In such cases, an employment lawyer can advise you of your rights as a business owner and how to protect yourself from employment disputes.
Of course, as a business owner, you will need to pay state and federal taxes. A smart entrepreneur must arrange their business matters to take advantage of every tax concession available to them. A tax attorney can provide you with legal advice on how to save on your taxes when you file your annual return.
3. Civil Suits
Since your business is a legal entity, it can sue and be sued by other businesses. If you are ever faced with a civil suit by another corporation, you will need the expertise of a litigation lawyer to help you avoid a costly lawsuit. Your lawyer will examine your case and advise you how to best defend against it. He or she will also handle any court appearances and filings on your behalf and will advise you if a settlement is in order.
Before setting up your business, it's a good idea to understand laws business owners need to be aware of. One way to do this is to contact your industry association.
An important area to check out is advertising laws. This is necessary in order to not mislead others in your advertising efforts. Keep in mind; no matter if you advertise on billboards or on the Internet, there are a variety of consumer protection laws that need to be followed.
It is also important to understand laws that pertain to employee rights such as harassment, discrimination, benefits, wages and safe and drug-free work environments. Finance laws are also necessary to understand because they require businesses to follow certain guidelines, especially when it comes to bankruptcy, antitrust regulations, and securities.
Most importantly, as a business owner, you need to protect your patent, trade secrets and your trademark. Because almost every business is online, your company needs to be in compliance with laws that deal with security, online privacy, copyright and taxation issues. Understanding employment and labor laws are also essential.
In addition, your state government and the EPA have certain laws when it comes to regulating the impact of business on the environment. It is essential to find out how your business should deal with the responsibilities for air pollution control and the disposal of toxic materials.
Understanding and abiding by privacy laws are also important for any business. Your customers and the government want and need to know what your business is doing to protect all personal information that your business obtains every work day.
To conclude, before setting up your business, it's a good idea to understand the laws business owners need to be aware of. Talk with a lawyer soon and find out about the laws that pertain to your business.
How to avoid breaking the law in business is not hard to do. However, many businesses every year break the law; often when they first start out. When this happens, there are fees that are charged which can stifle business. To keep your business running lawfully there are several important steps to follow.
One step is to always make federal payroll tax deposits. Some startup businesses that do not have sufficient working capital will not pay their federal payroll tax deposits. Of course, this is breaking the law. Another step is to not allow the destruction of documents that are relevant to litigation. If your business is in litigation, you are legally required to not destroy anything that is known as relevant evidence.
Most importantly, if investor funds are improperly used, this is breaking the law. Keep in mind; anytime a person takes money from people in trust, he or she should be careful on how it is spent. In addition, not charging, collecting or reporting sales tax is another way a law can be broken. Also, if you oversell your qualifications when bidding for a government contract, you will be going against the law.
For example, if you as a business owner responds to a request for proposal and lie about your company saying that has the experience to fulfill a contract during a specific period and do not fulfill that claim, you will be in trouble with the law. Failing to mark patented products is also unlawful. This is two-sided because if you fail to mark patented products, you and other companies dealing with you will be breaking the law.
Not complying with federal wage and hour statutes is another lawbreaker. This can include employing people without valid Social Security numbers or taxpayer identification numbers. Mistakenly selling a recalled product and improperly billing for government services like Medicare are two other examples where business laws are broken.
Perhaps one of the most severe ways to break the law is by claiming excessive or improper itemized deduction on your tax returns. This is often done by claiming excessive itemized deductions so as to reduce the taxpayer's tax liability.
To conclude, how to avoid breaking the law in business can be done; however, it requires planning and organization. Talk with your lawyer soon and find out about business laws that are important to the success and safety of your business.
As an entrepreneur, it is crucial that you be aware of all the regulations that apply to your line of business. Business law is a branch of legal studies that specializes in learning all the rules that dictate how to create and manage a venture. Here's an overview of what this legal practice entails and why it is necessary in the modern world.
Disciplines of commercial law
Commercial law is quite broad, but it focuses on a few key disciplines that are essential for the normal running of an enterprise. The varieties mainly include taxation law, intellectual property, employment, and sales law. An attorney with a specialty in any of these areas will assist the entrepreneur to avoid future lawsuits as they interact with other players in the market.
New venture formation regulations
It is mandatory for amateur entrepreneurs to be conversant with existing laws before they open their doors to clients. Businesses can exist in a variety of forms namely corporations, partnerships, limited liability companies and sole proprietorship. Attorneys are therefore necessary to assist their clients to fill the requisite documentation and file them with the state authorities.
Managing internal operations
A business lawyer will come in handy where an entrepreneur needs to outline the domestic agreements that will govern how the entity operates. This measure is mostly applicable to the case of a limited liability company. A memorandum of association is a sensitive document that details how owners will share profits and losses as well as dividend payouts. When disagreements arise, the stakeholders can always refer to this report for clarification.
Managing Complex transactions
When it comes to commerce, some operations are easy to handle while others are complex. People in the line of intellectual property and image rights do encounter a lot of challenges due to the existence of patents and copyrights. This situation leads many firms to assemble legal teams to provide direction on market developments that influence their operations. Commercial lawyers need to be on red alert to detect any significant changes that happen in the business world.
Hiring a legal expert
Legal representation does not come cheap; you will most likely part with a significant amount depending on the caliber of lawyers you assemble. However, this expense is small compared to the cost of non-compliance. You can opt to hire attorneys on a part-time or a full-time basis. Large organizations will have multiple legal experts serving the firm throughout the financial year.
There is a saying that if you fail to plan, you're planning to fail. Therefore, every consumer, business or organization needs to have a plan for their future. A short term plan must be accompanied by yearly budgets showing the projected revenue and how it will be spent throughout the year. This is what will push you towards financial independence and financial security.
A budget is simply a statement of income earned from all the available sources as well as all the expenses you will spend your money on throughout the year. By simply looking at your yearly budgets, you should know the annual income you expect to earn from your job, side business and dividends from stocks. You should also be able to see the total amount you are going to spend on your mortgage, taxes, living expenses, savings and major acquisitions. For instance, if you are planning to buy a new car without financing, the budget should be able to accommodate the expense without creating a deficit. Please note that the gross income on a budget must match the total expenditure.
When you have a budget, you will know the maximum amounts of money you must spend on each expenditure item on your list. For instance, if you have stated that you must save $24,000 in a year towards purchasing a new car, you must save $2,000 on a monthly basis towards this end. If you are not able to do this, you should know that another item on your budget is using up more funds than it has been budgeted for. This will prompt you to make the necessary adjustments to ensure things do not get out of hand.
A budget can help you to meet your goals. For instance, if you have listed things that you would like to acquire in a year, you can use the budget as a reminder as well as a scorecard as you can tick off anything you have acquired. As you continue to see more and more ticks on your budget, you will know that you are getting closer and closer to your short-term and medium-term financial goals.
If you do not know how to make a budget that makes financial sense, you may want to hire a financial adviser or an experienced accountant to help you out. These professionals are good with numbers, so they can help you to make an amazing budget that will help you to meet your financial goals.