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. Shareholders vs Members " In a limited liability company, there are no shareholders. They are called members instead.
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. Written Agreement Jurisdiction " When negotiating a contract, make sure to look at the jurisdiction clause. You want it to be in your town or city. Otherwise, you may have to travel across the country to defend yourself in a lawsuit.
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. Business Ownership Planning " At the outset of a business start up, it is hard to image worrying about owners leaving. Well, you need to sit down and plan out scenarios with the owners. It is easier to negotiate difficult subjects before revenues are made.
7. Copyright Library of Congress " To copyright something, you need to file an application with the Copyright Office which is a department of the Library of Congress.
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. Going Ecommerce? " Most startups dont think about going online before opening a brick and mortar office or shop. If you can get the hang of web design, it is much cheaper to start online.
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. - 23802
1. Shareholders vs Members " In a limited liability company, there are no shareholders. They are called members instead.
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. Written Agreement Jurisdiction " When negotiating a contract, make sure to look at the jurisdiction clause. You want it to be in your town or city. Otherwise, you may have to travel across the country to defend yourself in a lawsuit.
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. Business Ownership Planning " At the outset of a business start up, it is hard to image worrying about owners leaving. Well, you need to sit down and plan out scenarios with the owners. It is easier to negotiate difficult subjects before revenues are made.
7. Copyright Library of Congress " To copyright something, you need to file an application with the Copyright Office which is a department of the Library of Congress.
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. Going Ecommerce? " Most startups dont think about going online before opening a brick and mortar office or shop. If you can get the hang of web design, it is much cheaper to start online.
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. - 23802
About the Author:
Thomas Ajava writes for FindanAttorneyforme.com - where you can find a Washington business attorney near you.
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