A Sampling of Business Law Tips
Mention legal regulations to a businessperson and you will probably see their eyes glaze over. One can hardly blame them given the complexities of the subject. That being said, here are a few legal nuggets you should know.
1. NDA Protection ? If you are going to provide important business information to a third party, make sure to get an NDA. An NDA is a non-disclosure agreement.
2. Operating Agreement vs Bylaws ? There are no bylaws for a limited liability company as found in a corporation. The Operating Agreement serves the function of the bylaws.
3. Identity Theft Tip ? Never click a link to a site based on an email you randomly received even if the company is well known to you. Instead, go to a search engine and access the site that way.
4. Business and Friends ? When starting a business, there is a tendency to get friends involved. Generally, this is a bad idea. Different views can lead to the end of friendships.
5. Financing New Businesses ? Starting a business usually requires money. Many people make the mistake of first offering ownership interests in exchange for cash. Use this as a last resort.
6. Defining Shareholders ? The owner of a corporation is called a shareholder. The shareholder?s interest is the number of shares he or she owns compared to the total shares issued.
7. Website Copyright Issues ? Many businesses need websites and yours probably does as well. If you use an outside party to create it, make sure they transfer copyright to you for the site.
8. Corporate Tax Designations ? Once you have incorporated a business, you must determine the tax status of the business. If you do nothing, it is automatically taxed as a C-corporation. Alternatively, you can file for a S designation.
9. LLC Tax Designation ? Most people know LLCs are great because they can be taxed like a partnership. If you wish, however, you can have them taxed as a corporation.
10. Discovery in Lawsuits ? During a lawsuit, much of the time will be spent on discovery. Discovery is the process of learning information through depositions, document requests and so on.
The law is a vast and complex subject. A few tips are not going to get you by. If you find yourself in a complex situation, seek out the advice of a good attorney.
Conduct an attorney search at FindanAttorneyforme.com.
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