Small Business Law Consulting for Entrepreneurs
Small business owners know the importance of getting things right. They know what type of business they want to start, how to manage the daily tasks that they need to do, and they usually have a business plan to follow.
But what about the legal stuff?
Small business owners need the help of an attorney for several reasons. Below are some of the most important ones that you should know as a business owner.
Creating a Business Plan
Mark Cuban, a billionaire businessman, tech expert, and co-star of the popular ABC “Shark Tank” series states that every business must have a business plan. It’s too important a thing to start a business not to know where your ship is going.
Even if you think your business plan is already as good as it can be, getting an attorney to help you devise or perfect your business plan is one of the smartest things you can do. By enlisting the help of a licensed attorney, they can think of things that you might not think of such as how to word your customer policies, privacy policy, and legal statements and disclaimers. They can help you fine-tune your website if your business is online and focus on strategizing a strategy that will ensure you are on your timeline and in compliance with all federal, state, and local standards.
Most attorneys don’t want to write your entire business plan, though. So you’ll need to have a pretty good working outline or draft version of it before you bring it into an attorney’s office to review.
Then they can help you check your plan with the compliance standards in your area to be sure you are doing things right legally.
This is valuable to the small business owner. One lawsuit that you lose due to an oversight on your part can cost you lots of money in legal fees, as well as late fees or filing fees due to your failure to meet the deadlines.
Business Tax Filing Statuses
Every small business has to file with their federal, state, and local offices if you plan to do business in your state. Different laws apply to small businesses in various states, so you need to know the business laws of New Jersey if you reside in this state.
You also need to notify the IRS about your tax status when starting a new business. You will be registered as one of the following tax statuses for tax purposes:
- Sole Proprietor
- LLC
- S-Corp
- C-Corp
- LLC-Partnership
All of the above tax statuses are appropriate for registering a new business. But you should know the differences in the various tax statuses before declaring which one you want to be. Some specific factors are present in each one that you need to be aware of. For example, if you are a sole proprietor, the IRS sees no difference between you and your business and you can have your assets taken if you get into trouble with your business that is under your name or if you owe someone money for unpaid debts.
The LLC status offers a bit more legal protection, but you can end up paying higher taxes under the LLC status.
The S-Corp and C-Corp categories are both corporate statuses, but you pay far fewer taxes with an S-Corp since the IRS allows you to claim what you make as a salary from your business earnings.
C-Corporations end up paying taxes twice: once on the business and once as an individual as the CEO of the company.
These more delicate points of the law regarding taxes and business tax statuses are crucial and should be further broken down and explained by an attorney before you decide which one to choose. Your decision will be with you for a long time.
Incorporation Services
One advantage to having a business attorney on hand is that you can have them file the paperwork for you if you decide to be either a C-corporation or S-corporate entity. This process takes about three weeks, and the fee is around $100 for initial filing. Your business attorney can take care of everything for you.
Legal Matters and Contracts
During the daily tasks of your business, you may be faced with signing contracts, dealing with various requests from B2B partners, and dealing with legal matters. If you have an attorney at hand, you will always have someone who can help you with these issues. Most legal problems can be settled “out of court,” but you need to have a good business attorney ready to go to court with you if you or your business is sued where out-of-court settlement was not possible.
Fraud and Fiduciary Crime Defense
Sooner or later, if you are a successful business, you may be sued for something. Maybe a client files a complaint that you committed fraud by not delivering the product that you promised. In our present world, some people think they can complain about someone and they are automatically accused of a crime.
This is not so in the U.S.A. since the Fourth Amendment guarantees your right to privacy and freedom from unlawful search and seizure. That’s why you need a lawyer, in case you are falsely accused.
Other Situations
Maybe a business partner wants to sue you in civil court for the $5,000 they claim you owe them for unpaid goods.
Whatever the case, you need a seasoned legal expert who can come to your aid whenever you need them.
Some people take the perspective that they will call a lawyer when they get into trouble. But it’s much smarter to have a lawyer that you already use for all of your business matters. That way, when you do experience legal issues, you already have an advocate who can help you by offering a sound defense anytime you need one.
If you have an attorney in your contacts already, you can call them with any question you may have while you build your business, and anytime you need quick advice or help to protect your interests or give you peace-of-mind.
They will get to know your business well and what your needs are long before there is any legal issue you must deal with.
We sincerely hope you never have a legal issue. But in our imperfect world, when it does happen, it’s good to have a friend you can count on.
That friend is David Schlendorf, Attorney and Law and Ioana Enescu, both licensed attorneys in Toms River, New Jersey. You can find them at DTS Law Firm. They are ready and willing to help you with your small business needs.