Tag Archives: legal structure

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How a Business Attorney Increases Your Bottom Line

All business owners look for ways to cut costs and save money. You may think that handling legal issues on your own will save your entity money, but working with a business lawyer to safeguard your business’s best interests will save you in the long-run. For example:

  • Legal structure. Having an attorney help you pick the most advantageous legal entity for your business is one of the most important things you can do. There are a variety of entity types available and each has its own pros and cons. Choosing the right legal structure for your business impacts your personal exposure to liability and taxes.
  • Transactions. Contracts can be complex and extremely difficult to understand. Negotiating the best deal for your entity can feel overwhelming, especially if the other party has their own attorney. Working with your own business attorney can ensure that all negotiations are handled fairly and that the contract is drafted in a way that unambiguously reflects what the agreement was. A seasoned lawyer can also anticipate certain obstacles and take action to decrease your potential liability as well as reduce the likelihood of any disputes going through costly and time-consuming litigation.
  • Employment practices. Before your entity hires its first employee, you should confer with a lawyer. It is essential that employers verify that their employment practices (such as hiring/firing employees, providing benefits, classifying employees versus independent contractors, and other similar matters) comply with federal and state laws. Failure to do so can result in your business being sued or being assessed penalties by the government.
  • Lease agreements. Leasing commercial space is often a commitment that lasts for a long period of time. Leases often cover numerous complicated matters, so it is essential that you understand what you are agreeing to before you sign the contract. Failure to confer with a lawyer regarding a commercial lease could lock your entity into an agreement with over-reaching or unfair terms that can negatively affect your business’s chance of succeeding.

The above list is not exhaustive, but it gives you an idea of how a business attorney can save you time and money. To learn more about starting a new business or how we can assist you with other business-related matters, contact Leslie S. Marell today.

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5 Important Tips for Your New Business Venture

When you are starting a new business, it is easy to feel overwhelmed by all of the decisions you have to make. The decisions you make now can have lasting consequences, so it is important to get them right. Below are five important tips to help ensure that your new business gets off to a successful start:

Legal Structure

There are several different types of business entities to choose from, each with its advantages and disadvantages. To learn more, please read our blog titled “Which Legal Structure is Best for Your Start-Up?” It is important for you to confer with a business attorney to ensure you select the legal structure that is most beneficial for your business.

Written Contracts

New business owners often fall prey to relying on oral promises that aren’t fulfilled. Getting your agreements in writing is the best way to protect your interests. This includes creating a written agreement between the founders of the business which outlines each owner’s percentage of ownership and how the daily business decisions will be made.

Intellectual Property

Intellectual property can include anything from your company name, to its logo, to the type of products you sell. All business owners should take the initiative to legally protect their intellectual property. If your entity fails to obtain the proper patent, trademark or copyright, it could result in you have no legal recourse if another party infringes on your rights. One important step in protecting your private information is to require all employees to execute a non-disclosure agreement.

Employees

There are a wide variety of laws governing an employer’s relationship with its employees. It is imperative that you educate yourself regarding the laws, rules and regulations that apply to your industry and your specific business.

Get help

When your business is first starting out, you will likely be tempted to try to save money and handle things on your own. Unfortunately, this approach can end up costing you significantly more than the cost of retaining a professional. One mistake could be the end of your business before it even gets off the ground. Don’t let that happen – get the legal assistance you need.

If you have questions regarding business law matters, contact us today to schedule an initial consultation. Leslie S. Marell has been practicing business and commercial law for over 25 years. She is established in private practice and has extensive legal experience counseling companies in the areas of business contracts and transactions, purchasing, sales, marketing, computer and technology law, employment law and day to day legal matters. Let us provide your company the advice and guidance you need.

 

 

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Which Legal Structure is Best for Your Start-Up?

When you are starting a new business, it is normal to be eager to get the doors open and see your ideas put into action. However, don’t skip over one of the most crucial steps in ensuring the success of your entity, which is choosing the most advantageous legal structure for your business. Each type of legal entity has its advantages and disadvantages, so it is important to confer with a knowledgeable business attorney to determine which type will benefit your company the most. Below are the three most common forms of legal entities:

  • Limited Liability Company. Many new businesses select the limited liability company (LLC) structure for their new entity.The LLC offers similar protections as does a corporation, but one distinct advantage is that the LLC does not require the same formalities as does a corporation. The LLC permits the members to own and manage the company jointly, while also sharing in the profits and losses. Additionally, the members of the LLC can take advantage of pass-through tax treatment. It should be noted that every business situation is different, so you should confer with a lawyer or other tax advisor regarding the tax treatment in your individual circumstances, but the LLC typically offers several benefits. Lastly, and importantly, the LLC provides the business owners protection from personal liability. In other words, the owners’ personal assets are usually protected from debt collection efforts and judgments against the LLC, except where fraud, misrepresentation or other egregious situations occur.
  • C-Corporation. The C-corporation (C-Corp) is a complex and expensive legal structure to create, but it can provide a wide variety of benefits. A C-Corp is taxed as a separate entity and the owners are only obligated to pay taxes on the profits received from the business. Also, a C-Corp usually falls in a tax-bracket that is lower than individual tax rates. A C-Corp is often used if the company expects to be acquired and can be a beneficial structure for fundraising purposes. You can sell shares in the entity and also create different classes of stock.
  • S-Corporation. The S-corporation (S-Corp) has some important similarities to the C-Corp, but most business owners select it for the tax treatment it receives. The S-Corp is a pass-through entity, which permits the profits and losses from the entity to flow directly to the shareholders. You can only have 100 investors in a S-Corp, and they must all be individuals who are legal residents of the United States.

The above is a very brief summary of three of the business structures available for new entities. There are many other factors that should be considered as well as the other business formations available. Contact Leslie S. Marell to determine which type of entity is the most beneficial for your new business.