starting your own business - law 4 small business (l4sb) e-book... · a little law now can save a...

Alittlelawnowcansavealotlater

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Starting Your Own Business AL4SBe-book

Law4SmallBusiness,P.C.

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Law4SmallBusiness,P.C.�317CommercialSt.NE,SuiteA�Albuquerque,NM�87102505-715-5700�888-99-BIZLAW(888-992-4952)

www.L4SB.com��[email protected]

Table of Contents

Introduction 03

GettingStarted 04

BusinessTypes 06

IntellectualProperty 10

CommonLegalIssues 14

SuccessionPlanning 16

Taxation 18

Resources 19

AbouttheAuthor 20

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Introduction

First,congratulationsondownloadingthisE-Book,andcongratulationsongettingstartedwithyourownbusiness.There’salotofinformationabouthowtostartyourbusiness.Wetrulyappreciateyoutakingthetimetolookatours.

ThepointofthisE-Bookisnottohavealltheanswers,butrathertooutlinesomeofourbesttipsforsmallbusinessandstartingabusiness.Feelfreetouseitasaresource.Keepinmindthatnotallthescenarioswillapplytoyouandyournewbusiness.Webelievethatthesetipsrepresentthebiggesteffectfortheleasteffort.Wehopethesetipshelpyouandyourbusiness.

Law4SmallBusiness,P.C.,(“L4SB”)wasfoundedonthemantraofourtagline:“alittlelawnow,cansavealotlater.”Webelievethatgoodlegalhelpislikegoodmedicine;alittletimenowcanpreventmanyailmentslateron.Bydoingthingsrightfromthebeginning-potentiallegalissuescanbelimited.

Let’sgetstarted.

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Getting Started

“Ifyoufailtoplan,youareplanningtofail.”–BenjaminFranklin

Asfatalisticasitmaysound,Mr.Franklindoeshaveapoint.Whenitcomestostartingabusiness,‘winging-it’reallyisn’tthebrightestoption.Nowwe’veallheardmiraculousstoriesofbusinessesthatfellintoovernightsuccess.Thesadtruthisthatrarelyhappens.Wecan’tallbetemporarilyembarrassedmillionaires.(Ifitwerethateasy,wouldwereallybeherewritingaboutit?)Thepointis,itdoesn’tmatterhowgreatyourbusinessideaisunlessyouactuallyplanforittosucceed.

Whichbringsustothefirststepofstartingabusiness:PlanningYourBusiness.Timetostarttakingyourbusinessideasandputtingpentopaper.Setgoals.Researchthebusinessclimateandyourplannedindustry.Makea(realistic)timelineandsticktoit.Keepinmindthatintheearlystagesofplanningyourbusiness,yourBusinessPlanwillbequiteflexibleandchangefrequently.Yourmilliondollarbusinessideaisn’tworthadimeunlessyouhaveaplantoactuallyimplementit.Thinkofthisprocesslikearoadtrip.YourgoalsarethedestinationandyourBusinessPlanistheroadmap.Neitherworkswellwithouttheother.

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WritingYourPlan

ThereareplentyofwaystowriteyourBusinessPlan.MostBusinessPlansstartwithanExecutiveSummaryorbasicoverviewoftheplan.ThisexplainsyourBusinessConcept,basicintroductoryinformation,productsand/orservices,finances,industryinformation,potentialcustomers,andgoals.Fromthere,youcandelveintoeachtopicingreaterdetail.Reallygetdowntowhyyourpotentialbusinessisbetter!

Fishing

MostbusinessplanscomefromtheconceptsofeitherBlueOceanorValueAdded.

- BlueOceanStrategyisatermstolenfromfishing.Itreferstotheideaofseekingout‘BlueOcean’oranuntappedmarketwithpotentialcustomersandminimalcompetition.

- ValueAddedStrategyassumesthatthemarketisalreadysaturatedwithproductsandservicessimilartoyoursandtheonlywaytosucceedistostandoutbyaddingvaluecompetitorscannoteasilymatch.

Ofcourse,thereisabitofadebateoverwhichoftheseschoolsofthoughtis‘better’.Frankly,eachideahasitsownmeritandcansucceedindifferentsituations.Thelinebetweenthetwoisnotalwaysclear,andBusinessPlanscanincorporateelementsofboth.ThedownsideofBlueOceanisactuallyfiguringoutwhereandhowtoreachyouruntappedmarket.Inmanyways,thisstrategyworksbetterforenteringaneworemergingmarketsorgeographicareas.(AlthoughitisworthnotingthatsuccesscanarisefromBlueOceaninacrowdedmarket.)

Ontheinverse,thechallengeofValueAddedisactuallydeterminingthedifferentiatingfactorwithyourbusiness.Youreallyhavetodrilldowntoit—ideallyyourvalueaddedstrategycanturnintoCoreCompetencieslater.

Dotakenotethatplanningwilltakedifferentformsfordifferentpeople.Bestofluck.

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Business Types

LegalStructureandYourBusiness

Whatformortypeofbusinessentityshouldyoucreate?Mostsmallbusinessesknowtheyneedsomeformofcorporatestructure,butdon’tknowthespecificoptionsavailabletothem.Thislistbrieflyspellsouttheoptionsaswellasthepotentialrisksorrewardsresultingfromeach.

UnderstandingLegalStructure

Nowfirstand(shamelessly)foremost,thebestwaytogetgoodlegalandfinancialadviceistoconsultwiththeappropriateprofessionals.Findsomeonewhoknowsthefieldwell.Furthermore,takethetimetounderstandyouroptionsandtheirrespectiveimplications.Thisbookwilllayoutsomeoftheoptions.

Nowkeepinmindthatthisbookcannotsolvealltheissuesofchoosingalegalstructureforyourbusiness.However,somegeneralknowledgeoftheavailablelegalstructureoptionswillhelpyouinultimatelymakingtheselection.

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TheLegalStructureMenu

(FromSBA.gov)

Let’sstartwithabasiclistoflegalstructuresavailableto“non-professional,”“for-profit”businessorganizationsintheUnitedStates(“professionals”suchasdoctorsandlawyersusespecialbusinessentitieswithdifferentliabilityandtaxconsequencesnotmentionedhere):

SoleProprietorship–ownedbyoneperson(oramarriedcouple).Ifoneormoreownersentertheequation,thebusinessautomaticallybecomesaGeneralPartnershipunlesssomeothertypeofentityiscreated.

GeneralPartnership–ownedbytwoormorepersons.Generallyspeaking,apartnership,limitedliabilitycompanyorcorporationcanbeapartnerunlessaPartnershipAgreementoranotherapplicablelaworregulationstatesotherwise.(Thisisnotalwaystrue,besuretocheckyourfacts).

LimitedPartnership–arethesameasaGeneralPartnershipbutdifferintermsofformation,liability,operational,andtaxation.Ownersmaybe“GeneralPartners”of“LimitedPartners.”

LimitedLiabilityCompany(LLC)–maybeownedbyoneormorepersonsorotherentities.Ownersarecalled“Members.”

Corporation–maybeownedbyoneormorepersonsorentities,called“stockholders”or“shareholders.”Fromataxstandpoint,maybea“SubchapterC”corporationora“SubchapterS”corporation.

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LegalStructureandtheLegalSystem

Keepinmindthatyourlegalstructurewillbeaffectedandshapedbyfederal,stateandindustryspecificguidelines.Mostoftheaspectsaroundlegalstructuresincludinglegalformation,legaleffect,andconductcomefromstatelaw.Oneofthemoreconfusingaspectsofstatelawandlegalstructurearisesfromthefactthatstatelawsarenotuniversal.Inotherwords,statelawswillvary.Especiallyifyourbusinesswillbeoperatinginmultiplestates,itpaystoseekthehelpofaprofessional.Foradditionalresearchmaterials,considercheckinginwiththeIRS’BusinessStructuresguideandtheSmallBusinessAdministration’s(SBA’s)outstandingBusinessTypesstartingpage.

LegalStructureConsiderations

Therewillnotbea‘perfect’legalstructureforyoursmallbusiness.Thebestfitforyoursmallbusinessdependsonmanyfactors.We’vemadealisttohelpyougetstarted:

Structure:Whatindustryareyouin?Arethereanyindustryspecificguidelines?Howcomplexisthislegalstructuretoformandmaintain?

Capital:Howdoesthisparticularlegalstructurehandlecapital?Canitattractcapital?Howiscapitaldistributed?Howaretaxeshandled?Thisisperhapsthemostcrucialandcomplexareawhenitcomestochoosingalegalstructure.

Ownership:Whattypeofownerexistsinthislegalstructure?Howdoyouplantorunthebusiness?Howeasyisittotransferownership?Howmanyownersdoesthislegalstructureallow?Howinvolvedwillsaidownersbe?

Liability:Howdoesthislegalstructurehandleliabilitytocustomers,vendors,andotherthirdparties?

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Incorporating

Herearesomeofthebenefitsthatcomefromincorporatingyourbusiness:

ReducePersonalLiability

§ Fromthedebtsofthecompany

§ Fromlegalliabilitiesofthecompany(i.e.harmsyourcompanycausesagainstothers,lawsuits,etc.)

Flexibility

§ Youcanallocateavaryinglevelsofownershiporcontrol

GreaterTaxSavings

§ Therearemanytaxdeductionsacorporateentitycanparticipateinthatasoleproprietorshiporpartnershipcannot(ex.Deductionforhealthinsurance)

Durability:thecompanycontinuestoexist,evenuponyourdeathorbankruptcy

§ Asaseparatelegalentity,thecorporationcontinuestoexistevenifoneormoreoftheownerspassesaway

§ Personalbankruptcydoesn’taffectthecorporationandvisa-versa

Pleasenotethatthedetailsbehindthesedifferencesarecomplexandacompleteunderstandingrequirestime.Thisisjustapartiallistofthevariousfactorsthatneedtobecarefullyanalyzed.

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Intellectual Property

ProtectingIntellectualProperty

Soyoucameupwiththeperfectlogoforyourbusiness.Howcanyouensurethatitisn’tmisusedorstolen?Businessesprotecttheirintellectualproperty(i.e.inventions,writtenmaterials,logos,trademarks,andevennames)frommisusebyregisteringthemwiththeappropriatefederalandstateagencies.Oncetheregistrationisacceptedandthepatent,copyright,orrighttoexclusiveuseisgranted,specificremedies(i.e.legalactions)becomeavailableintheeventthatanotherpersonorbusinessmisusesyourcompany’sintellectualproperty.Therebyyourregistered“creations”becomeprotectedassets.

First,theBasics

Roughlyspeaking,therearefour(4)differenttypesofIntellectualProperty,allprovidingverydifferenttypesofprotectionstoverydifferentconceptswithverydifferentrules.It’sconfusing,butheretheyare:

Trademarks–Protectthe“sourceidentifier”foraproductorservice,suchasalogo,tradename,orwordmark.Trademarkshaveautomatic“commonlaw”protectionwhenfirstusedincommerceatastatelevelandcanbeprotectedatthenationalorinternationallevelwithregistration.Trademarkprotectionisnotabsoluteandonlyprotectsagainstothermarkswherethereisa“likelihoodofconfusion”inyourparticularindustry,market,and/orgeography.

Copyrights–Protectaparticularexpression,suchasamusic,literature,drawings,photographs,videos,sculptures,computersoftware,andmore.Doesnotprotectagainstsimilarexpressionsthatwerecreatedseparately,nordoesitprotectagainstconfusinglysimilarexpressionsifnotshowntobe“derivativeworks.”Youcangetautomaticrightswithoutregistration,butregistrationprovidesanumberofbenefitsincludingtherighttosueforcopyrightinfringement.

Patents–Protectnovel(i.e.new),nonobvious,andusefulinventions.Anideamustbeputtopracticaluse,andmustnotbeintuitivelyobviousfromthepriorart.Protectiongoestothe“firsttofile,”andassuch“provisionalpatents”,areaneasyandinexpensivewaytocreateafilingdate,whicharevalidforayearwhileyouperfecttheutility,method,plant,ordesignpatent.

TradeSecrets–Protectcompanysecretsthataretreated,well,likesecrets.Think“CokeFormula.”Whatprocesses,procedures,rules,trainingandoversightdoyouemploytoprevent

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accidentalorinadvertentdisclosure?Itemsworthyoftradesecretidentificationincludecustomerlists,methods,processes,vendorlists,systemsandmore.Allthat’srequiredisyoutreatyourconfidentialinformationasatradesecretandworktomaintainitssecrecy.Ifyoudo,moststatesprovidestrongpenaltiesforthosewhoviolateyourcompany’stradesecrets.Noregistrationrequired.Beware:Onceyourtradesecretbecomespubliclyknown,itlosesitstradesecretstatus.

IPLawOnline

Nomatterwhetheryoudoyourwebsiteyourselforhireacontractortobuildyourwebsite,andnomatterwhetheryourelyonsomeoneelsetofindimagesandphotos,oryoufindtheimagesandphotosyourself,youareatsignificantriskofcopyrightinfringementifthephotosandimagesyouusearenotyourown.

Copyrightlawisa“strictliability”offense,whichmeansthatyoudonothavetohaveknowledgethatyou’reinfringingthecopyrightsofsomeoneelse.Youcanbeguiltyofcopyrightinfringement,evenifyouhiresomeoneelsetobuildyourwebsite.Allthatisrequiredtobesuedforcopyrightinfringement,istousetheworksofanotherwithouttheirpermissionorwithoutobtainingtherightlicense.

Inanidealworld,(1)youshouldprovideyourownphotosandimages.Whenthat’snotpossible,(2)youshouldfirsttrytocommissionyourownwork.Ifthat’snotpossible,then(3)buytherightstockphotographyfromareputableprovider,suchasGettyImages.Finally,andonlyasalastresort,(4)allowathird-partycontractortodoit.

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StandardCharacterMarkvsLogo

StandardCharacterMarks-(alsoknownasawordmark)isusedtoregisterwords,letters,numbersoranycombinationthereof.Howeveritdoesnotlayclaimtoanyparticularfontstyle,size,color,ordesignelement.Inotherwords,asinglewordmarkprotectsthephraseregardlessofhowthewordsaredisplayed.

Wordmarksprovidebroadprotectionofthewordorphrase,regardlessofhowitisused.Forexample,awordmarkon“Law4SmallBusiness”wouldprotectthephrase“Law4SmallBusiness”inanyfont,size,orcolor.Itwouldcoverthephraseevenwhencombinedwithgraphicsorinlogos,suchasinthe“L4SB”logointheupperleftcornerofthisblog.Italsohelppreventcertaintypesofdomainsquatting.

StylizedLogos-(alsoknownasdesignmarks)isusedtoregisterwordsand/orlettershavingaparticularstylizedappearance,amarkconsistingofadesignelement,oracombinationofstylizedwordinganddesign.Inotherwords,adesignmarkcanprotectalogowithorwithoutwords.TheNikeSwoosh,forexample,isadesignwithoutwords.Thesameswooshwith“NikeAir”nexttoitisadesignmarkwithbothwordsandimages.Thewords“NikeAir”inaparticularcolorandfontwouldalsobeadesignmark.

Generally,ownersofdesignmarksarenotfreetomodifythemark.Forexample,changingadesignmarkcouldmakethemarkimpossibletorenewbecauserenewalrequirescontinuoususeofthedesignasitwasregistered.Instead,apersonwhochangesadesignmarkmayhavetofileanewtrademarkapplication,andalthoughgreaterweightisoftengiventothewordsthantothedesign,thedesignstillcomesintoplayindeterminingwhetheracompetingmarktoosimilartoaregisteredmark—thatis,designmarkscanbeinterpretedtobelimited,tosomeextent,bytheirlogo,graphical,orstylisticelements.

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TMvs(R)

The(R)symbolnexttoatrademarkmeansthatthetrademarkisofficiallyregisteredwiththeUSPatent&TrademarkOffice(orUSPTOforshort).Forasimple,arbitrary,non-existingwordmark,itcanbeeasyandinexpensivetoregisteryourtrademarkbyyourself.RegisteringyourtrademarkgivesyousuperiorrightsoveranyoneelseintheUnitedStatestouseyourtrademarkintheindustryclassesspecified,anditallowsyoutopotentiallyobtaintrebledamagesagainstinfringes.

Ifyourtrademarkiscomplicated(i.e.asoundmark,diagram,etc),moredescriptivethanarbitrary,isbeingusedbyothersbeforeyou,ornotjustbasedonasimpleword,registeringyourtrademarkcanbecomemorecomplicatedandmuchmoreexpensive.Thisbecomestheterritoryanddomainforgoodtrademarkattorneys;andtrustme,it’swellworththeinvestmentofagoodlawyertohelpyouthroughtheprocessofregisteringyourtrademarkundersuchcircumstances.

UsetheTMsymbolinplaceoftheR-symboluntilyourtrademarkisregistered.Forallothertrademarksthatarenotregistered,theymustnotbeassociatedwiththeR-symbol.DoingsocanevokepenaltiesfromtheUSPTOifyoueventuallytrytoregisteryourtrademarkorifyoutrytodefendagainstpotentialinfringers.Instead,itprovidesnoticetowould-beinfringersthatyouviewyourmarkasatrademarkandthatyouwilldefenditagainstwould-beinfringers.

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Legal Issues

Lawsuits

What’syourbiggestfearasabusinessowner?Bankruptcy?Badreviews?Lackofcontrol?Ifyouanswered‘lawsuits‘,youarenotalone.Infactthere’sevenawordforit:liticaphobia–thefear/phobiaoflawsuitsandlitigation.

Nothingisquiteasterrifyingforabusinessownerthanreceivingasummonsorsubpoena.Asidefrombeingatremendousdistractiontoyourbusiness,lawsuitsareveryexpensiveandemotionallydraining–evenifyouwin!

Often,alawsuitcandisableorcompletelywipe-outabusinessifthatbusinessdoesn’thavetheproperinsurancetocovertheclaimorcauseofaction.

Whilethereisnosurefiremethodforhowtoavoidalawsuit,takingprecautionsnowcansaveyoubiginthelongrun.

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AvoidingLawsuits

Eventhoughyoumaybestrugglingtojustmeetpayrollasasmallbusinessowner,youoweittoyourselftotakeprecautionsagainstgettingsued.Saidprecautionscanbeeffectivewithouttakingallyourtime.

First,considertheemployee-employerrelationship.Whenhiring,findsomeonewhoistherightfitforyou,yourbusinessandtheWAYyouconductbusiness.Findingtherightemployee(s)willhelpreducelawsuitsfrommisunderstandingswithemployeesandwillleadtohappieremployeeswithhighermorale.Inturn,employeeswithhighmoraledeliverhigher-qualityworkforyourbusiness,thereforereducingthechanceofpotentiallawsuitswithcustomersandvendors.

Secondbecarefulwithyouwhochosetogointobusinesswith.Thestakes(andemotions)arehighanddissolvingtherelationshipcanbecostlyandmessy.Youneedtobeinbusinesswithpeopleyoucantrustimplicitly.

Third,manageyourgoals.It’smuchhardertoaccomplishday-to-dayoperationswithouthavinggoalstoreach.Byemployinggoalsforbothyourbusinessprocessesyouwillbecomemoreeffectiveandmoreefficient.Settinggoalswillhelplowercostsandreduceerrors—thusreducingthepossibilityoflawsuits.

Fourth,considertrust.It’sanoftenoverlookedcommodity.Businessesandpeopleliketodobusinesswithsomeonetheycantrust.Trustitcanreducecostsanddecreasefrictionineverythingyoudo.

Fifth,obtainalineofcredit.Cashisking.Ensuringyouhaveareadysourceofcashinanemergencyisabsolutelycriticaltoavoidinganexpensivelawsuit.

Finally,don’tbeafraidtoseekadviceinthoseareasyouarenotstrongin.Greatbusinessleaderslearntorecognizetheirweaknesses,anduseexpertstooffsetthoseweaknesses

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Succession Planning

Whathappenstoyourbusinessifyouretire?Ofifyouwanttosellit?Orifapartnerretires?Orbecomesdisabled?Orgetsdivorced?It’stemptingtoputoffsuchplanning.Asabusinessowner,youoweittoyourselftoconsidersuccessionplanningearly.Morbidasitmaybetodwellonsuchtopics,butadvanceplanningcansavemoney,timeandheartachelaterdowntheroad.

Whydoyoudowhatyoudo?Ifrequentlyhearsmallbusinessownersattributetheirdecisiontostartabusinessinorder“toleavealegacyfortheirfamily.”Othersmaywanttoallowtheiremployeestoinheritthebusinessorleavethebusinesstoaspecificcharity.Almostallbusinessownerswanttoseethefruitsoftheirhardworkcontinuewhentheyarenolongerinvolved.

HowWillYourBusinessBePassedOn?

Withoutpropersuccessionplanning,it’sveryunlikelyyourbusinesswilltransformthewayyouwish.Lackofplanningwillmakeitdifficulttoefficientlyhandlearetirement,incapacityordivorce.

Deathorincapacity:YourholdingsinanyandallbusinessentitiesreverttoyourEstate,afteryourEstatehasbeensettled.DeterminingyourEstateisoftenaverycomplicatedanalysisofaWill(ifoneexistsorisn’tdisputed)orstateintestacylaw(ifnoWillexistsorcanbefound).Thisprocesscantakeweeksandusuallyinvolvesaprobatecourt.

Retirement:Unlessthepartnershaveagreedtosomethinginwritingbeforehand,thereisno“default”laworruletoholdagainsttheremainingpartner(s)orretiringpartner.It’sallnegotiations,betweenalltheowners,remainingpartnersandretiringpartneralike.Bewareof“hiddenprovisions”intheOperatingAgreementorBylawsthatcantiltnegotiationsinthefavorofeitherparty.

Divorce:Anythinggoes.Theonlysure-firewaytopreventanex-spousefromjoiningthepartnership,ishavingabuy/sellagreementorOperatingAgreementforcesuchanex-spousetosellhisorherownership(iftheyareawardedit)backtothecompany(orcross-salebacktotheremainingpartners).

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Wherethere’saWill,isthereaWay?

AWillisafantasticwaytohelpensureyourwishesaremetuponyourdeath.However,Willsarenotfoolproof.Theycanbecontested.Theycanbelost.Wills(usually)needtobeapprovedbyaprobatecourt,anditcanmeanthebusinesslanguishesasleadershipissortedout.Probatecanpotentiallytakeayearormore,dependingonthenatureofthedebts,assets,andclaimsmadeuponyourestate.Howwillyourbusinesssurvivethistransitionperiod?

AWillonlyaddressesYOURestateuponYOURdeath.AWillisNOTagreatwaytoforceallpartnersintoanagreementforthebusiness.JustbecauseyoudoaWilloneway,doesn’tmeanyourpartner’sWillisthesameasyours.Furthermore,there’snowaytoensureyourpartner’sWillisactuallyinterpretedandenforcedthewayyouhadhoped.

DONOTassumethestatewilldotherightthingifyouhavenoWill.DONOTassumethestatewilldotherightthing!ThereisabsolutelynoguaranteethestatewillfollowyourWill.Intestacylawisverycomplicatedandit’snotalwaysclearwhogetswhat.Outstandingdebtsandobligationswillhavetoberesolvedinprobate,beforeANYONEgetsassetsfromanestate—especiallyabusiness.

Also,considertheindividualsinyourWill.Aretheypreparedtotakeyourplace?Dotheyknowhowtocontribute?Aretheyeveninalocationconducivetoparticipatinginyourbusiness,afteryourdeathorincapacity?Dotheygetalongwithyourexistingpartners?Youcannotsimply‘Will”theseissuesaway(punintended).

Doesthewholeideaofsuccessionmakeyouslightlyqueasy?Therearebetterways...Itpays(literally)toplanaheadwithsuccessionplanning!Ifyouhavepartners,youalloweittoeachothertodiscusstheseissuesnowandputaplaninplacetoaddresseverything:death,incapacity,retirement,anddivorce.Askyourselvessomehardquestionsandseektheadviceofyourbanker,lawyer,andCPA.

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Taxes

Theoftdiscussedonlyconstant:deathandtaxes.Nowyourbusinessisgoingtohavetounderstandhowtaxesworkandpaythemontimeinordertostaysuccessful.Amessy,drawnoutfightwiththeIRSisnotinanybody’sinterest.

Whenitcomestotaxes,therearethreeimportantconsiderations:

1. FederalTax(Nationwide)2. StateTax(Stateand/orstatedoingbusinessin)3. LocalTaxes(CitySpecific,CountySpecific,etc.)

Manysmallbusinessownerselecttostayasole-proprietorshipoutofconveniencewithoutconsideringthetaxconsiderations.

CorporationTaxes

Thereareimportanttaxconsiderationswhenitcomestocorporatestructure.Differentstructuresofferdifferenttaxbenefits.Herearesomereasonstoconsiderformingacorporation:

§ No“self-employment”tax

§ Taxedasacorporation,whichismuchlowerthanindividualtaxrates

§ Candeductbusinessoperatinglosseswithoutlimitations

§ Mostbenefitsareconferredtax-free(i.e.Forexample,medicalinsurance,lifeinsurance,someformsofeducationalreimbursement,retirementplans,someentertainment,travel,andmealsareallconsideredtaxfreetotheemployeesandaredeductibletothecorporation)

§ Canshiftincomebetweenownersandcompanyinwaystominimizeincometaxesacrosstheboard

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Our Resources

“SmallBusinessDevelopmentCenters(SBDCs)provideassistancetosmallbusinessesandaspiringentrepreneursthroughouttheUnitedStatesanditsterritories.SBDCshelpentrepreneursrealizethedreamofbusinessownershipandhelpexistingbusinessesremaincompetitiveinacomplex,ever-changingglobalmarketplace.SBDCsarehostedbyleadinguniversitiesandstateeconomicdevelopmentagencies,andfundedinpartthroughapartnershipwithSBA.”

https://www.sba.gov/tools/local-assistance/sbdc

“Ifyourbusinessisnotfoundpage1ofGooglefortheproductsorservicesyouroffer,thenyouarelosingmoneytoyourbusinesscompetitorsthatarefoundaheadofyou.”

http://www.rocketboxseo.com/

“WESSTisastatewidesmallbusinessdevelopmentandtrainingorganizationcommittedtogrowingNewMexico’seconomybycultivatingentrepreneurship.Ourpassion,counsel,hardwork,experienceandcommitmentaretheinspirationandbehaviormodelweofferourclientssothattheycanrealizetheirentrepreneurialdreamsandachieveeconomicsuccess.”

https://www.wesst.org/

Manybusinesscollegesalsoofferlocalsmallbusinessassistanceprogramswheretheypairbusinessownerswithexperiencedresearchersandeagerstudentstohelpwiththebusinessandbusinessplan.Doesyourlocalcollegeoffersuchaprogram?

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About the Authors

AboutLaw4SmallBusiness

Law4SmallBusiness(L4SB)existsbecausethelegalsystemtreatssmallbusinessesasiftheyhadbiglegalpower—andmostdon’t.Furthermoremostsmallbusinessescannotaffordthelargeretainerfeemostexperiencedbusinesslawyerscharge.ThusL4SBwasborntomeetthedemandcost-effectivelegalhelpwithoutretainerfees.

OurservicesrangefromflatratecontractreviewtoIntellectualPropertylaw,non-competestocollections.Wefeeluniquelyqualifiedtohelpourclients—almostallofourattorneyshaverunoneformofbusinessoranother.Wearealldedicatedtohelpingsmallbusinessownersandleaderswhoneedquickandcost-effectiveaccesstocompetentlegalservices.

Law4SmallBusiness(www.L4SB.com)–Alittlelawnowcansavealotlater.

Call,visitoremailus!

Formoreinformation,pleasevisitourbusinessblogwww.L4SB.com/Blog.

Thise-Bookhasbeenwritten,compiledandeditedby:LaurenceDonahue,Esq.,SteveComeau,Esq.,DavidFerrance,Esq.,AnnaNguyen,KalenMillerandPaulSchulman.

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Thise-bookisintendedforgeneralinformationonly,anditshouldneverbeconsideredortakenaslegaladviceorlegalopinionunderanycircumstances.Youshouldconsultwithaqualifiedattorneyand/orCPA/accountantforspecificlegal,financialortaxquestions.Thise-bookshouldnotbeconsideredasolicitationforlegalservices,andisintendedtobeeducationalonly.

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