Steps to Form a Business

Steps to Form a Business

Business Law
From a legal standpoint, forming a business is not something that happens automatically. It takes work and planning to make the necessary choices and execute them. An experienced business law attorney can work with you on this process. The first step is to choose a business structure. You have various options, and the one that you select could determine things such as: Your personal liability for your business debts and obligations Your tax status Whether your business would survive owner disputes The reporting obligations for your business Then, there are numerous registrations that you would have to file, including: With the Florida Department of State Registering the business name Registering with the IRS to receive an employer tax identification number Registering with the Florida Department of Revenue In addition, you…
Read More
Drafting Enforceable Business Contracts

Drafting Enforceable Business Contracts

Business Law
The terms of your business contracts will be what protect you in the event of a dispute. However, the contract may not always be enforceable if the matter is litigated in court. Here are some tips for drafting enforceable business contracts. The first thing is to make sure that the goals of the contract are clear. Each agreement requires consideration. Each party must do something for the other or give up some sort of right. The language of the contract should be clear and definite and should leave no doubt as to key terms. In that regard, your contract should contain all the key terms of an agreement and not exclude anything. Make sure that you state that the contract represents the entire agreement between the two parties, so there…
Read More
Steps to Incorporate Your Business

Steps to Incorporate Your Business

Business Law
Incorporating your business is a process that must be done right to save time and money. Here are some steps that you need to take to incorporate your business. Choose a Name You will need to incorporate your business under a specific name. Perform a search to make sure that the name you want is available because you cannot incorporate it under an existing business name. You can check on the Florida Secretary of State’s website. Choose Your Corporate Entity This may be the most important decision that you will make when starting a business. You will usually choose between a corporation and an LLC. Then, you will choose what type of corporation you are starting. Create Your Business Documents Each business must have incorporation documents and bylaws. These will…
Read More
What Happens When Partners Disagree?

What Happens When Partners Disagree?

Business Law
Partnership disputes can be among the most challenging because each person has their livelihood on the line. Partners may be dug into their position and have their own desired way of doing things. The best thing is to avoid litigation, but it is a definite possibility. If you find yourself in a disagreement that cannot be resolved, you should attempt to mediate the dispute with the other partner or partners. Try to talk through a neutral third party or through your lawyers to help lower the tension and find common ground. Many disputes can be resolved when the parties are able to take a step back from the brink. Always Check the Partnership Agreement If you cannot settle the dispute, the partnership agreement will dictate what happens when there are…
Read More
What Is an LLC?

What Is an LLC?

Business Law
When you are forming a business, you will carefully select the right corporate form. One popular choice that entrepreneurs make these days is a Limited Liability Company (LLC). This is a way that allows them to run their business with protection for themselves. An LLC has many of the benefits of a partnership without some of the risks. This is the simplest (and one of the safest) ways of incorporating your business. Protection from Liability The “limited liability” part of the term LLC refers to the potential responsibility that the owners would have in the event of a lawsuit. A claimant could not come after the owner’s personal assets unless they managed to “pierce the corporate veil.” Without this corporate form, the owners would be at risk (like they would…
Read More
When Is a Contract Unenforceable?

When Is a Contract Unenforceable?

Business Law
When someone is sued for breach of contract, one of the common defenses is that the contract is not enforceable for one of a number of reasons. Even though there is an agreement to perform, courts will not always enforce it if there is something wrong with the contract or the way that it was formed. Lack of Capacity There are some people who lack the capacity to enter into a contract. For example, people who are in cognitive decline or minors cannot legally sign a contract. The contracts that they sign will not be enforced. This is why contracts will usually be limited to people aged 18 or over. Unconscionable Contracts Courts will also decline to enforce contracts that are so one-sided that they are unconscionable. These contracts typically…
Read More
What Does it Require to “Wind Up” a Business?

What Does it Require to “Wind Up” a Business?

Business Law
For whatever reason, you may need to shut down your business. This is not a process that simply happens on its own. Before your business can come to a legal end, there are a number of steps that you must take. Some of the steps that you must go through are procedural. For example, you must file notification forms with government agencies informing them that you will no longer be in business. This includes: The Florida Secretary of State’s office The Internal Revenue Service Any government agencies that have given your business a permit You may also need to notify come creditors under state law Closing the Books on the Business Then, you must finalize your business books. This involves closing down your accounts and collecting all of the debts…
Read More
Common Shareholder Disputes

Common Shareholder Disputes

Business Law
Shareholder disputes can arise in any corporation, public or private, large or small. Sometimes, disagreements arise between the shareholders themselves or between company owners and shareholders. There can be many different issues at the heart of these disputes, but one thing is always true - it is important to resolve shareholder disputes as efficiently and effectively as possible to preserve the company’s bottom line. Common issues involved in a shareholder dispute include: The breach of the shareholder agreement Breach of fiduciary duty Disagreements about the management or direction of the company Minority shareholders getting bullied by majority shareholders Personal issues that impact business relationships Conflicts of interest Discrepancies in contribution or compensation Inadequate distribution of dividends Allegations of fraud or unlawful conduct by the company Whatever a dispute entails, the…
Read More
How to Dissolve a Business in Florida

How to Dissolve a Business in Florida

Business Law
Starting a business can be one of the most exciting decisions of your life, but many things come to an end. It is important to recognize that dissolving a business is also a major step and can have costly impacts if not done correctly. When the decision has come to dissolve your business, the way in which you do so will depend on the type of organization you have, how many owners there are, what their ownership and contractual rights are, and also local laws and procedures. Connecting with a Boca Raton business law attorney can help to ensure that the process is done correctly, effectively, and completely, so that your risk in dissolving is minimized and the benefit maximized. Winding Up and Filing Paperwork When it comes to partnerships,…
Read More
How to Start a Business with a Partner

How to Start a Business with a Partner

Business Law
Successfully beginning a partnership depends a lot on the work that you put in ahead of time. The choices that you make in the business formation process could make or break the business. Here are some steps that could help your partnership. Choose the Right Partner You may end up responsible for the other person’s actions in a partnership. Your success depends on them. This is why you need to select a trustworthy partner with whom you work well. Find someone with skills that complement yours. The best thing is to have a track record and history with that person already. You should have an extensive discussion about your values and goals before you go into business with someone because you are bound together. Get Everything in Writing You will…
Read More