Most Important Types of Business Law

In today’s society, many people are starting new businesses and they need to legally register their company. If a business is not registered, the owners may be breaking the law as they would be accused of running the business illegally. When a company wants to merge with another firm, they should have a written contract which both parties need to sign. These agreements should be drafted by a business lawyer who should guide the firms during the process. Business law covers a wide branch of knowledge across a variety of disciplines.

Business law covers all aspects of a trade from the registration of business to hiring
employees and selling goods across the globe. A business may need a lawyer to help with the relevant terms of agreement and sales and present them to the other parties. When a company wants to bid for tender or have a project, the lawyer needs to come up with various proposals to present to the other parties. At times, disputes arise and when there was no binding agreement, the business suffers a huge loss.

The seven most common types of Business Law:

1. Sole Proprietorship: A business owned by a single person.

2. Partnership: A business owned by two or more people who share responsibilities

3. Limited Partnership: General partner(s) run the business, while limited partners invest

4. Corporation: A fully-independent business with shareholders

5. Limited Liability Company (LLC): A mixture of a partnership and a corporation, designed to make it easier to start small businesses

6. Nonprofit Organization: A business that uses its profits for charitable purposes

7. Cooperative (Co-op): A business owned and operated for the benefit of the members of the organization that use its services

1. Sole Proprietorship:

A sole proprietorship is one of the most popular business types, namely because it’s one of the simplest and only requires a single person to create. In a nutshell, a sole proprietorship is a business that’s owned by just one person. An important thing to note is that there isn’t a legal or financial distinction between the business and the business owner, which means that you as the business owner are fully accountable for all of the profits, liabilities and legal services that your business may encounter. The nice thing about a sole proprietorship is that you don’t have to fill out any forms or go through any legal procedures to declare this type of business.

2. Partnership:

Two heads are better than one, right? If that’s the philosophy behind your business structure, then a partnership might be the best choice for you. A partnership might be appropriate if your business is owned by two or more people. Keep in mind that with this type of business, business responsibilities, including financial and legal, fall upon each business owner. Depending on how the ownership is divided (either equally or not), there are different types of partnerships for you to explore from a legal standpoint.

3. Limited Partnership:

A limited partnership, or LP, is an off-shoot version of a general partnership, and while it may not be as common, it’s a great bet for businesses who are looking to raise capital from investors who aren’t interested in working the day to day aspects of your operations. With a limited partnership, there are two sets of partners: The General Partner and the Limited Partner. The general partner is usually involved in everyday business decisions and has personal liability for the business. On the other hand, there’s also a limited partner (typically an investor), who is not liable for debts and don’t partake in regular business management of the company.

4. Corporation:

A corporation is a fully independent business that’s made up of multiple shareholders who are provided with stock in a business. Most common is what’s known as a “C Corporation,” which allows your business to deduct taxes much like an individual – the only problem with this is that your profits will be taxed twice, both at the corporate level and at the personal level.

5. Limited Liability Company (LLC):

Next on our list of business types is a Limited Liability Company, better known as an LLC. An LLC is a newer type of business that is a blend between a partnership and a corporation. Instead of shareholders, LLC owners are referred to as members. No matter how many members a particular LLC has, there must be a managing member who takes care of the daily business operations.

6. Nonprofit Organization:

A nonprofit organization is pretty self-explanatory, in that it’s a business organization that’s intended to promote educational or charitable purposes. The “non-profit” aspect comes into play in that any money earned by the company must be kept by the organization to pay for its expenses, programs, etc. Keep in mind that there are several types of nonprofits available, many of which can receive “tax exempt” status.

7. Cooperative:

The last on our list of seven popular types of business is what’s known as a cooperative, or a business that’s fully owned and operated for the benefit of the members of the organization that uses its services. In other words, whatever is earned by the cooperative is then shelled out among the members themselves, and aren’t required to be paid out to any external stakeholders, etc.

Entrepreneurs must be mindful of all the associated risks that come with launching a new company. Knowledge of business law goes a long way towards ensuring that all appropriate, legal obligations are being met. Many times, startup owners think that they will learn the legalities as the company progresses, but once things become hectic, many legal issues may be overlooked or forgotten. Remember, knowledge is power. If you are not sure of something, it is always best to consult with an attorney.

 

How To Select The Right Business Attorney?

Behind every successful small business is an experienced business attorney. Owning your own small business can be as difficult as it is rewarding. Hiring an experienced attorney can allow you to focus on running your business instead of complicated legal matters. When looking for a business attorney, it is important to carefully research the credentials and experience of each potential candidate before making your final decision.

One of the most important things you can do as a business owner is hiring lawyer who specializes in business law. A lawyer who understands and is familiar with the importance of corporate structure and obtaining permits and licenses will prove to be one of the most helpful business decisions you’ve made.

Finding a good business attorney may be more difficult than it sounds. While it is possible to open the phone book and pick the first corporate litigation or business lawyer you see, that is often times, not the best choice. The right business attorney for your company will most likely come from a referral or information service offered by the local bar association. These organizations specialize in providing businesses with corporate attorneys that best match their needs. Usually, the bar association will set up a free initial consultation with an attorney or provide you with free referrals to business lawyers that specialize in your particular area of business and is better equipped to handle your needs.

Read on to learn some helpful tips for selecting the right attorney for you and your business:

1. Evaluate Your Needs:

Before beginning your search for a new business attorney, it is important to evaluate the legal needs of your business. Attorneys often specialize in a specific area of the law, so it is important to select someone with the right skills and experience for the job. Some of the most common legal services provided by business attorneys include the creation of business organizations, preparing and filing taxes, leasing and purchasing real estate, preparation of legal contracts, and copyright, patent, and trademark protections. It’s also important to determine whether an individual practitioner or a large firm will be needed to handle the legal needs of your business.

2. Ask for Referrals:

Obtaining trusted referrals is one of the best ways to find a new business attorney. Ask friends, relatives, and colleagues for referrals to reputable business attorneys they know and trust. It can also be helpful to search online legal referral and attorneys and reviews of board certified business attorneys in your local area.

3. Check Credentials and Experience:

After acquiring a short list of experienced candidates, it is important to ensure that each attorney has the necessary credentials and experience for the job. Verify that each candidate is licensed and board certified by the American Board of Certification or the American College of Board Certified Attorneys as a business specialist. Choosing a business specialist will help ensure that only the most skilled and experienced attorneys is representing your business. It can also be helpful to view each candidate’s website to learn about their background, education, certifications, awards, and experience.

4. Schedule a Consultation:

Begin the consultation by inquiring about the attorney’s background and experience representing businesses similar to yours. Of course, it would be a great idea to know some of their backgrounds when it comes to legal impediments. Next, ask specific questions about your business needs. Lastly, discuss the attorney’s availability and legal fees before making your final selection.

5. Analyze your Budget:

Before hiring an attorney, you need to analyze your budget to avoid a financial crisis later. Hiring a business lawyer from a big law firm can be expensive than small firms. However, a reputed firm will have specialized attorneys who might be able to resolve the business disputes and lawsuits in time.

6. Verify certification, license, insurance, and membership:

Now, it’s time for you to evaluate the details of the attorneys. Make sure the attorney which you choose carries liability insurance and license to avoid legal issues. A reputed attorney will also maintain an active membership with the local, national and other international bar associations.

You can also find business attorney referral websites, which sometimes offer free referrals to corporate lawyers in your area. Simply enter the search terms like “business attorney,” “starting a corporation” or “corporate litigator” and the referral service will list the best matches for you. It may take some time to receive the results, but once you have found a business lawyer that appears to be right for you, you can set up a consultation. Be sure to check with your local chamber of commerce and/or the Better Business before your face-to-face meeting. Find out if the business attorney has any complaints against them.

During the consultation, you can ask more in-depth and specific questions to make sure the business attorney has the right experience and qualifications to be retained for your company. Find out exactly what the lawyer’s specialty is and if it is an area in which you need legal assistance.

Most importantly, gauge your sense of comfort with the business lawyer. After all, you will be spending a lot of time with the lawyer and they will be privy to the inner workings of your company. You will need to be able to trust them and be a get along personally. Having a business attorney you trust will help navigate your company through rough legal waters and get you through with an outcome that is most beneficial to your business.

Divorce And Child Custody : Everything You Need To Know

Divorce is a trying time for anyone, but few suffer more than children caught in the middle of a marital dispute. You would do anything for your child, and you can not bear to be away from him or her. If you are in the middle of a divorce, you may be apprehensive about your former spouse requesting full custody of your children. Here are five facts about divorce and child custody that can help ease the already massive strain by allowing you to understand the custody process.

Child Custody proceedings are complex, which is why we have created this guide to cover:

1. The types of child custody arrangements
2. The process of reaching a custody agreement
3. Potential child support obligations
4. Personal and emotional considerations
5. How to hire the right divorce attorney

1. Types Of Child Custody Arrangements:

Child custody can refer to where your children will live after divorce (physical custody), or who has the legal right to make decisions about their upbringing (legal custody). In each scenario, parents may jointly share the responsibility or the courts may award one parent solely.

Below are some key terms to better understand child custody laws:

(i) Physical Custody
(ii) Joint Physical Custody
(iii) Sole Physical Custody
(iv) Visitation Rights of the Non-Custodial Parent
(v) Visitation Rights of Grandparents, Step-Parents, and Caretakers
(vi) Legal Custody
(vii) Non-Parent / Third Party Custody or Guardianship

2. Reaching A Custody Agreement:

Parents can reach a custody agreement informally, via a mediator, or via a judge’s court decision. Regardless of how you plan to reach a custody agreement, you should not negotiate or make any agreements without first seeking legal advice.

Though the process may vary, the end result is a written legal custody agreement. It is often called a “settlement agreement,” “custody agreement,” or “parenting agreement.” The agreement is then shown to the court for final approval, and the finalized agreement becomes a binding contract to which parents and others must adhere to.

3.Establishing And Calculating The Child Support:

If one parent is awarded sole physical or legal custody, the noncustodial parent is usually required to make child support payments to the custodial parent. If the parents are awarded joint physical custody, the child support obligations are determined by the percentage of time the child spends with each parent and how much money each parent earns.

States have varying guidelines to determine the range of child support to be paid by a parent, depending on respective incomes and expenses.

Factors in determining the amount of child support usually include:

• Child care expenses, including health insurance, education, day care, and special needs.
• Income of the custodial parent
• A parent’s ability to pay
• The children’s standard of living before divorce or separation

4. Personal And Emotional Considerations

Family relationships can and do continue after a divorce. Divorced parents can be effective parents even if they are no longer in a relationship. The manner in which parents resolve conflicts affect the way in which children adjust to divorce. When parents compromise and resolve conflicts respectfully, children exhibit less fear, distress, and other negative emotional symptoms.

There are a few core ideas that apply to parents:
(i) Be respectful to your spouse during the divorce and custody process
(ii) Relieve your children’s abandonment issues
(iii) Insulate your children from the divorce process

5. Hire The Right Divorce Attorney:

Divorce is a complex and exhausting matter, but hiring a legal professional to guide you through the lengthy legal process can make an enormous difference. Taking control of the situation is often the first step to emotional recovery and choosing the right attorney can relieve some of your stress.

Consider the following steps to before making a final decision:

(i) Make a list of family law or divorce attorneys in your area
(ii) Narrow down the list by researching attorneys online
(iii) Prepare for your initial meetings
(iv) Make an educated decision
(v) Work productively with your attorney

CONCLUSION

No matter the nature of your divorce, it is in your best interest to consult an attorney. A situation with the magnitude of your child’s custody should not be taken lightly, and finding the right attorney is not an expense to cut corners with.

Professionals like family law or divorce attorneys may help you take control of your situation and help you start a new life with your children. Don’t be afraid to find one in your area, and take control of your custody battle!

 

 

 

Why Do Startups Need Legal Documents?

Why is legal documentation so important for startups? One may ask. And, to point out to potential pitfalls that may hinder your company’s growth from the absence of it, there are plenty of examples around us.
In our earlier blogs, while we had written in detail about legal issues that startups need to address at the early stage, and the nuances of having a clear legal framework and strategy in place, in this piece, we take a step back, and understand why these documents are important for startups, and how they play a key role in administering an unimpeded growth for their business.
Once you, as a reader, gain an understanding of why these documents are important, don’t forget to take stock of the infographics, which can be used as a legal cheat sheet for key documents every entrepreneur must have at the early stage. The infographic (Fig.A) has been designed in a way that it defines the key (legal) requirements of each sector on three scales; necessary, essential or desirable. Of course, as your company grows, the requirements may vary but for an early stage entrepreneur, this can be a steal!

Common Legal Pitfalls
Before we delve into the need for legal documents, let’s first look at the common mistakes founders usually commit, when it comes to forming legal documentations.

• Constructing documents which may not be suited for their business, or what in other words can be called a DIY agreement.
• Postponing putting together of critical agreements to a later date.
• Inadequate processes and systems protecting a company’s IP.
• Non-signing of non-disclosure agreements.
• Skipping implementation of preliminary IP checks and protocols.

Legal Documents Hold The Fort
Usually, having the right legal documents in place offers great clarity on the legal risks involved in the business, liabilities and rights of parties involved in such contracts, and more. It ensures that nothing is left to ambiguity, and comes much in handy when a company is taking key decisions; such as raising external investments, forming an exit strategy, or reaching out to potential customers

Resource: https://www.altacit.com/2016/06/why-do-startups-need-legal-documents/

5 Ways to Prepare Social Media and Email Accounts Before Death

After someone has passed, their cyberspace footprint does not disappear. Someone must handle the accounts. Most people have multiple online accounts.There are steps you can take to ensure your accounts are properly taken care of, after you have passed.

Here are 5 ways to prepare your accounts:

1. Get a Digital Executor: A digital executor is someone who will carry out your wishes regarding your social media and email accounts, upon your passing. One job your digital executor may have is delete emails or deactivate social media accounts. The executor would be the only one to see your emails and confidential information on your social media accounts. You can designate anyone as your digital executor, but it is best to choose someone you trust.

2. Inventory Your Accounts: The average person has about 90 online accounts. Most likely, you will not be able to remember all the accounts you have created off the top of your head. Make a list of all the accounts you can think of; make sure you have the username and the password. Make notes for any inactive accounts. If you no longer use an account, explain why and what happened.

3. Get Proper Documentation: Since your will or trust may not cover your digital assets, you should work with your digital executors, and make sure they can carry out your wishes. If your executor needs to prove to a service provider that they are your official representatives, confirm you have the proper paperwork filled out. If you have data in the cloud or other online storage, the service may require evidence of your consent to turn the data over to your family members or fiduciaries.

4. Backup Your Files: If you transfer all your files onto a hard drive, it will be much easier for your family members or executors to gain access. Remember that any files you leave on the cloud will still exist.

5. Do Not Forget to Update: Each time you create another online account or delete one, make note of it. Make sure you know which accounts you have on auto delete. For example, Google gives you the option to set up a service called Inactive Account Manager. The service allows you to choose what happens to your account and data after long periods of inactivity. Click here for a guide on how to set up Google’s Inactive Account Manager. Auto delete will take priority over what you have said in any written documents about the account.

Handelin Law represents individuals, families, privately-owned companies, foundations, and fiduciaries to prepare for any situation that may arise. We maintain close relationships with professionals in tax, investment and insurance industries, as well as valuation experts to ensure the best all-around advice for our clients.

8 Point Business Plan Primer

When starting a business, it can be difficult and stressful, but a business plan can prepare you for the unknown. According to the U.S Small Business Administration, there are 8 sections you should address in your business plan, to have a successful business.

1. Make an Executive Summary: What is the goals of the business? What image does the company portray? How does the company do business? This should be a well thought out summary of your business plan.

2. Company Description: How is your company different from other businesses? What does your business do? This section should address the overall idea of your business.

3. Market Analysis: Is there anyone else in your market? Have you done research on your industry, market, and competitors? This section should go over what the market for your product or service looks like now, how it has changed, and what it may look like.

4. Organization & Management: How will your business be organized and ran? Who is in charge of what and when? Every business has their own way of running their business; describe how you will run yours.

5. Service or Product Line: What is your service or product? What does the lifecycle look like? Do you have a patent or copyright? Tell a story about your product or service and why it benefits your customers.

6. Marketing & Sales: Who are you marketing to? How will you market your product or service? Who is selling the product? You will want to include an explanation of your general sales strategy.

7. Funding Request: Do you need funding? How do you plan on getting funding? Are you funding the business from your savings, planning on getting a  loan, looking for investors? Define where your starting capital will come from, and what your plans are for future capital for growth.

8. Financial Projections: How do you plan to grow? How quickly do you want to grow? Find out what your financial projections are, for the bank or investors. These financial projections will also help back up your funding request.

To make your business as successful as it can be, the plan needs to have a “wow” factor. To have a “wow” factor, everything must be explained in clear teams, your business plan must unique and explain why it’s unique. Explain clearly why your business is better than others, what it has to offer customers, and how it caters to customers in a superior way than others. If you would like to schedule a consultation for advocacy with one of our business law attorneys, please contact Handelin Law, LTD at (775) 882-8032 or come into our Office located at, 1000 N Division St, Carson City, NV 89703.

Business Law Estate Planning Litigation

Business Law Estate Planning Litigation team of attorneys and staff provide legal solutions individuals, families, and businesses throughout Nevada and California.  From estate planning to motor vehicle accidents, to everything in between, we are here for our clients and communities. Providing legal solutions through client education.

South Lake Tahoe Attorney

Our dedicated team of attorneys provide expertise and effective representation, no matter what your legal needs may be. We practice in a variety of legal services including estate planning, real property law, land use and zoning, creating, amending and administering wills & trusts, business formation, business advisement, contract negotiation, mergers, transfers, litigation, personal injury and workers compensation, canna law, cannabis business consultation, and more. With Carson City and South Lake Tahoe Attotney , our goal is to provide you peace of mind knowing our knowledgeable team of attorneys are dedicated to meeting your legal needs.

Online Legal Services

We are outsourcing legal services to small firm attorneys is quickly becoming a trend for corporations throughout the state of Nevada. Proudly providing online legal services for individuals, families, and businesses throughout Nevada and California, we value the communities we serve. We now offer courses on topics such as estate planning and business formation.