Business Law Archives - The Orlando Law Group

Bankruptcy Might Not Be as Difficult as You Think

How Bankruptcies Work

By definition, bankruptcies are legal and financial arrangements designed to provide a person or business with temporary relief from their debt. The bankruptcy gives the individual or company (referred to as the debtor) time and flexibility to better organize their ability to pay their debt and other financial obligations. Part of the process typically includes the creation of a plan to fulfill certain financial obligations. There are also specific situations where debts are entirely eliminated.

Clearly, bankruptcies should be considered as an option after other opportunities to relieve the debt have been explored. For example, it is usually advisable to attempt to negotiate with creditors before considering bankruptcy.

While bankruptcies are incredibly complex, there are things that individuals and businesses can do to make the process less complicated. It’s critical that those considering bankruptcies go through a detailed planning process. Also, a recommended first step is enlisting the professional help of an attorney and a financial advisor.

What is bankruptcy protection?

In the US Legal System and in bankruptcy court there is an essential difference between bankruptcies and bankruptcy protection. Put simply; bankruptcy is the process a person or business follows when they can no longer satisfy their debts. Bankruptcy protection refers to the condition where. During and after the bankruptcy, a company or individual has financial protection from their creditors.

What steps should I take before filing for bankruptcy?

When preparing to file, the more organized you are, the easier things can be for you and your attorney. Here are the efforts we recommend doing, and in some cases, not doing, as you prepare.

Do: Determine the type of bankruptcy you should file. Bankruptcies come in several types, including Chapter 7, where most of your debts are forgiven and Chapter 13 which involves restructuring your debt into a manageable payment plan. Your lawyer is the best source of advice on determining which makes sense for your situation. Your lawyer may have you take a Bankruptcy Means Test to assess your ability to pay your debts. The results of this test could eliminate your qualification for filing Chapter 7 bankruptcy.

Do: Enroll in a credit counseling course. You may be required to take a credit counseling course either in person or online. Work with your attorney to determine which is best for your unique circumstances.

Do Not: Go on a spending spree. Many people inaccurately believe that all debt will be forgiven when you file for bankruptcy. The reality is that all of your debt will be examined and an appropriate course of action will be determined. When your debt is reviewed, the bankruptcy court will become aware of any significant spending you might have done before filing. A large amount of what could be seen as unnecessary spending might not work to your advantage.

Do Not: Conceal the truth. Ultimately, the only way to get out of an impossible financial situation is to be truthful and honest about how you got there. When you work with an attorney, the more they know about your situation, the better they will be able to help you.

Can bankruptcies be avoided?

It is entirely possible for many people to avoid bankruptcy and bankruptcy court. The most significant benefit to avoiding bankruptcy court is that you will preserve a higher credit rating. One of the ways you can avoid bankruptcies includes working directly with your creditors to organize a plan to satisfy your debt. Another strategy might be to sell non-essential items that you own and use the money to pay off debt. There are other tactics that should be explored, working with an attorney can help uncover all options that might exist for you.

Do I need a lawyer to file?

Facing overwhelming debt can be a frightening experience and could be a source of embarrassment for many people. You might not want to share details with family and friends, and that’s ok. But you don’t have to deal with the situation alone. Because bankruptcies can be quite complex, it can be to your benefit to hire an attorney early on. The attorney can help guide you through the process, work with you on deadlines and paperwork, negotiate with your creditors, and help make the process easier than going at it alone.

Ready to speak with an attorney about your options? You can contact us to schedule a consultation.

February 20, 2019/by The Orlando Law Group

Photo of Jennifer A. Englert - Attorney and Managing Partner of The Orlando Law Group

Corp & Business Owners, Prepare for the Tax Cuts and Jobs Act Changes

All posts, Business Law

OLG LEGAL COMMENTARY:
Jennifer Englert
OLG Founder & Managing Partner

It may be difficult to ascertain what exactly has changed under the new Tax Cuts and Jobs Act and how these changes may affect you and your business. This article will provide an overview of how the new tax law will affect business, whether you are part of a large corporation or own your own small business, by identifying the information you need to know about each major provision.

What’s changed for corporations under the new Tax Cuts and Jobs Act?

Under the previous law, corporations were taxed under a four-step graduated rate structure, with 35% as the top corporate tax rate. Effective on January 1st, 2018, the top corporate tax rate was permanently cut to 21%. The new tax rate is a single flat tax, meaning it applies to all C corporations. Under the new law, the corporate alternative minimum tax rate was also eliminated.

What’s changed if I own a small business?

Under the previous law, businesses organized as sole proprietorships, limited liability companies (LLCs), partnerships, and S corporations did not pay corporate tax rates. Business owners instead paid individual income taxes on their share of the business’s income, a process known as pass-through business taxes. Thus, those tax rates were the same as the regular personal income tax rates. Under the new law, individual tax rates were reduced from 39.6% to 37%.

Effective on January 1st, 2018, the Tax Cuts and Jobs Act allows pass-through business owners may now deduct up to 20% of their qualified business income. This deduction is subject to a number of limitations, one of which caps the 20% exemption at the greater of 50% of the wages paid to employees and reported on a W-2 form, or 25% of those wages paid plus 2.5% of the cost of depreciable property owned by the business or depreciable capital assets. One limitation on this deduction is married couples who own service-based businesses like law firms, doctor’s offices, and accounting firms can only claim the deduction if their annual income is below $315,000 ($157,500 if single). This provision of the new law will expire after 2025.

The new law will apply to all pass-through businesses, including sole proprietorships, LLCs, partnerships, and S corporations. The following example demonstrates how the 20% deduction would apply, not subject to any limitations. If you own a small business and it generates net business taxable income of $500,000, you may deduct $100,000 (20%) of it before the personal income tax rates are applied.

Business Loan Interest Deductions

Under the previous law, any interest a business paid on their business loans was generally deductible. Under the new Tax Cuts and Jobs Act law, a business may only deduct interest expenses equal to 30% of its adjusted taxable income. Furthermore, under the previous law, if a business carried a net operating loss (NOL), it had the option to use those losses to either reduce any taxes paid in the previous two years, or to reduce any future taxable income for the next twenty years. Under the new law, net operating losses are reduced and can only be carried forward to reduce any future taxable income and are limited to 80% of taxable income. Past taxes may no longer be reduced by a NOL deduction.

Other Deductions as they relate to the 2018 Tax Cuts and Jobs Act

Entertainment Expenses: Under the previous law, costs expended entertaining clients were 50% deductible. However, under the new law, entertaining clients is notdeductible at all. Holiday parties and other similar workplace events for employees are still 100% deductible.
Business Travel: The cost of meals and drinks purchased during business travel is still eligible for deduction. As for business vehicles, for both new and used passenger vehicles that are acquired and placed into service after December 31st, 2017, the new tax law increased depreciation allowances. The vehicle must also be used over 50% of the time for business purposes. An $18,000 deduction may be taken for a new car the first year you own it if you claim first year-bonus depreciation. The allowance then decreases per year to $16,000 for the second year, $9,600 for the third year, and $5,760 for the fourth year and after until the vehicle is fully depreciated. If you purchase an SUV or a truck, the vehicle is now 100% deductible.
First-Year Bonus Depreciation: Businesses making eligible equipment and property purchases can immediately deduct 100% of the purchase through 2022, which is an increase from 50% under the previous law. After 2022, bonus depreciation phases down 20% every year until it reaches 20% in 2026.

While this article provides an overview of the how the new Tax Cuts and Jobs Act law may affect how your business is taxed and what deductions you may make, it is important to consult with your attorney regarding all of the factors that may affect your business as the new tax law could have further implications on your business.

July 20, 2018/by The Orlando Law Group

Three Reasons to Hire an Attorney

All posts, Business Law

There are many factors you should consider before hiring a lawyer. The truth is that law is a complicated matter. Some legal matters such as fighting a speeding ticket do not necessarily require you to hire an attorney. However, if you are charged with driving under the influence (DUI) or other serious crimes, you should hire legal help as soon as possible. Legally binding contracts and agreements have a great deal of legal jargon that you might not understand. Hiring an attorney to assist you in these contracts can save you a lot of money and prevent future complications.

While legal situations vary from person to person, to follow are 3 reasons why you should seek legal representation:

It can save you money. Fees vary from lawyer to lawyer, but most of the time attorneys will provide you with a free initial consultation. During the first meeting, you can evaluate the potential benefit of hiring a lawyer and further discuss what it will take to reach the goal of that particular challenge or project.
A good attorney will negotiate your settlement. An experienced lawyer who truly comprehends the law and your situation can properly assess how the case might resolve at trial. However, sometimes attorneys can negotiate with the other party and come to a fair settlement and avoid it all together.
Lawyers know the procedures. If you are not a lawyer, you will lack the knowledge necessary to properly fill out or file the court documents. Failing to do this or meet the required deadlines will put your case in jeopardy as it can either be delayed or completely dismissed.

While there are many “legal” tasks you can tackle on your own, it’s best to consult a professional in-order-to ensure you do not have to worry about unexpected issues later.

October 26, 2017/by The Orlando Law Group

How to Manage Without a Formal Office

All posts, Business Law

The new workplace isn’t really a place, it’s more a state of mind. You jump from meeting to meeting, talk over lunch, pitch over drinks, and create a “pop-up office” anywhere that has a place for your laptop or tablet, and of course Wi-Fi. For some who think smart logistically, you will manage to schedule full days to work solely at home, and other days where you move from meeting to meeting. Or, better yet, park yourself in a location, with coffee of course, and have your meetings come to you. We do suggest, however, that you purchase coffee or food, as those establishments have a business to run too.

If you want to succeed in this new frontier of business, being flexible in terms of time and space is vitally important. To follow are some key points that will help you steer in and around this territory:

Remain Charged
Is there an outlet you can plug into? Even if you’re at seventy percent – do it! The worst time to not have a fully-powered laptop is during a client meeting. And you can’t have your phone die when that unplanned conference call dial-in number gets texted to you. Whenever you have the chance to charge your devices, don’t miss it. You should also keep a portable charger in your bag for emergencies.

Do You Know the Hot Spots?
If you’ve already been practicing the impromptu office, you know the importance of free Wi-Fi and a calm place to work in-between meetings. Keep yourself organized by making a list of your favorite coffee shops, restaurants and hotel lobbies where you can tuck away in a corner and get 20-60 minutes of work done during downtime. This really helps when your local gathering place is too packed to be productive.

Create a Functional Work Bag
This is your office. You will want your laptop (or tablet), laptop plug, cell phone plug, headphones, toothpaste, toothbrush, lipstick (if it applies), cardigan (some places can be quite chilly), safety pin, hand cream, stain stick, Shout Wipes, breath mints, toothpicks, notebook, pen, pencil, mini deodorant — and that’s on a light day. Don’t go crazy, but just know that the day you don’t pack something is the day you will desperately need it.

Be Ready to Tackle AM and PM
There may be meeting-packed days that will go from scrambled eggs to cocktails, so you need to find outfits that can work all day long. If you’re a male, a solid suit. For women, this task is a bit more difficult. Great advice is that you can “always bet on black”. A little black dress lets you look professional during the day, and glamorous at night if you dress it up with sparkly jewelry.

Be Prepared to Pilot
Map out your day in advance. The worst feeling is to be crisscrossing town from one meeting to another, never knowing if you’ll make it on time. Having a solid plan of attack allows you to not get unnerved by those unexpected challenges and hurdles that tend to get thrown in your way. There are great apps to help with that. If you’re really organized, you will use the app as you actually plan the meetings so that it makes, even more, sense logistically.

These are just a few tips to help you be more prepared and less frazzled. As always, we’re here to help you navigate even the murkiest of waters so that you can focus on your business.

So, go forth business warriors! This is the way business moves. Find your best way to move along with it.

October 18, 2017/by The Orlando Law Group

Are Your Board Meetings Effective?

All posts, Business Law

How to make your board meeting more productive

Many board meetings are actually “bored” meetings. Leadership brings together their board members only to quickly present the material so they can get back to their “real” work. Without realizing it, you’re doing the company a disservice as the value of your board, if you have the right people, can be a tremendous source of insight and solid advice. The board’s job is to review the company’s financial performance and strategy and help provide counsel to the executive team. It’s up to you to manage them effectively.

Some boards are highly functional, many are not. Sometimes dysfunctional boards are a result of having investors who don’t really understand their role on the board or have the right skills or experiences to be helpful. Sometimes poorly run boards are a function of the executive team not knowing how to get the most out their boards.

To follow are some thoughts on how to make your interactions with your board more productive.

Communicate Frequently and Proactively

Do you wait until the actual meeting to correspond with the board? We advise that you send the board short, to the point, update emails at least monthly, especially if you meet quarterly or even less frequently. This keeps the board in-the-loop and does not give them the opportunity to come to their own conclusions about what is going on. Plus, you will be top-of-mind to people that matter and they will feel comfortable advocating on your behalf. Discussions Versus Presentations Many board meetings become really long slideshow presentations where management takes the board through pages and pages of financial results and plans. Send the presentation ahead of the meeting and instead use the time to have an open discussion on the key points.

Do you wait until the actual meeting to correspond with the board?

We advise that you send the board short, to the point, update emails at least monthly, especially if you meet quarterly or even less frequently. This keeps the board in-the-loop and does not give them the opportunity to come to their own conclusions about what is going on. Plus, you will be top-of-mind to people that matter and they will feel comfortable advocating on your behalf. Discussions Versus Presentations Many board meetings become really long slideshow presentations where management takes the board through pages and pages of financial results and plans. Send the presentation ahead of the meeting and instead use the time to have an open discussion on the key points. Your goal should be to have open dialogue with your board and take advantage of their expertise and experience.

Distribute Financial Information Prior to the Meeting

Financial information should be sent out 72 hours before a board meeting. If you send it out the night before, you’re practically guaranteed that it will not be read before that morning’s meeting. Remember, these are busy people too. Focus on Solving Strategic Issues Instead of wasting your time walking the board through financial information they should already be familiar with it. Spend your time walking through a few key decisions you’re trying to make and get their input on the topic. Set this expectation up front and your meeting will be more targeted towards results. Boards will only discuss the information you provide them and will mostly get off track if your agenda or your management style allows them to.

A Call Before the Meeting

If possible, have a quick call a day or two prior to the meeting with key members who will be reporting. This ensures you are up-to-date and onboard with what they will be presenting. This also helps you to create the agenda. Never be surprised at a board meeting. If you’re surprised at a board meeting it’s on you.

They Talk the Talk, Are They Walking the Walk?

Many things get decided at board meetings. If you took away actions — follow up. If a board member agreed to do something, hold them accountable. As with most meetings, much progress is squandered by lack of follow up. Lack of follow-up could put a real damper on progress and the board members who are living up to their promise on a particular task will become frustrated.

Meet in Person When Possible

There are times when you need to offer some board members the option to call-in to a meeting. That’s fine every now and then, but that usually results in people falling off the call, or becoming distracted. There is no way they’re as productive when it’s just voice. Also, having a well-functioning team with a high degree of trust in each other and confidence in each other’s opinions is critical to a successful board. And you simply can’t build relationships on the phone.

No Cell Phones Please

Help them be their best selves by banning electronic devices if you want a productive meeting. Schedule a 15-minute break in the middle of your meeting and inform people that there will be sufficient time to check in on their email during the break. Obviously, there are exceptions if they have something mission critical going on that might pull them away. But this should be the exception, not the rule.

Be Realistic With the Time Needed for a Meeting

If you’re trying to “get through your deck” and get back to work, then an hour is plenty. If you truly want input, discussions and relationships, schedule accordingly. Build Social Relationships Amongst Your Board Members We’re all so busy, but at least once or twice a year, schedule something that is purely social. We find it’s effective to hold a board meeting prior to the “social event” as they’re already together as a group.

Boards take work. But the best boards are super critical to your success and you get out of them what you put in.

If you have any questions about forming a board, or making the one you have even better, please feel free to schedule a consultation with one of the outstanding attorney’s at The Orlando Law Group PL.

October 12, 2017/by The Orlando Law Group

Employers Can Save Big on Insurance Costs for Older Employees

All posts, Business Law

For Example : If the employer is paying $1,200/month for employee insurance – $14,400 per year.

Medicare Part B is: $121

Medicare Part D is: $32

Medicare Supplement is: $185

TOTAL COST: $338/month – $4,056 per year

SAVINGS TO EMPLOYER-$10,344

This new plan is good with ALL doctors that accept Medicare in the United States. There are no copays, no deductibles, no referrals, and no medical payments for the employee. Coverage is 100%. Even with incidental costs for the employer, such as extra tax, bookkeeping, etc. the savings are still well over $8,000 per year.

Therefore, employers should investigate this option with an insurance professional to help both themselves and their employees.

Mitchell Gordon has been a certified independent licensed insurance broker/agent for 17 years. He provides coverage for life policies to include Term, Whole, IUL, and Final Expense. He also provides coverage for various annuities and health policies such as Long Term Care, Dental, and Critical Illness. Mitchell specializes in Medicare/Medicaid education. He works with physicians and practice managers to help educate their patients about their health plans. Mitchell also gives seminars for churches, schools, and homeowner associations at no cost.

February 27, 2017/by The Orlando Law Group

Does Your Employee Handbook Negate Your At-Will Status?

All posts, Business Law

Florida is an “at-will” state, meaning an employer has the right to terminate an employee without having to establish just cause, and without warning. The only employees who this would not apply to are those protected by a legal employment contract. A contract might provide a period of time in which an employee can only be terminated for limited reasons, as outlined. This can be a powerful bargaining tool when trying to woo a strong prospect with an offer of job security.

The wording of your employee handbook is so important, as one or two sentences could turn the document from an informative onboarding tool into a legal contract that ties the hands of an employer. Creating a contract through implication can occur with something as simple as stating that employment will be terminated if there is “good cause,” or making promises of job security for employees who do “good work”. One or two words of careless copy could land you in a mountain of legal trouble.

When a probationary period is outlined in an employee handbook, it could create an implied contract. A court might interpret the transition from probationary employee to permanent employee to imply job security, and thus the permanent employee cannot be terminated at will.

It is also important to note your disciplinary policies. If you state that employees can only be fired for certain instances of outlined misconduct, and will undergo a series of warnings, write-ups, and documented coachings, a court could require you to live up to that. If an employee is released for a reason not outlined in the official policy, or if a step in procedure was skipped, that employee could sue you for breach of contract.

A simple fluffy statement like “hardworking employees will always have a job here,” can be seen by a court as a promise of job security. This would necessitate the presence of “good cause” for termination, effectively neutering your “at-will” rights from a legal standpoint.

When drafting an employee handbook, you should avoid any and all language that could be perceived as a promise of job security. Outline your rights as an at-will employer in the handbook, clearly stating that nothing found within is meant to be taken as a contract for employment. Finally, ensure that you are fully protected by requiring employees to sign an acknowledgement form, which states that they understand their employment is at-will and can be terminated at any time for any reason.

The Orlando Law Group stands at the ready to aid businesses in creating and reviewing business policies. If you are establishing a business, or simply looking to review your current employment policies, call The Orlando Law Group at 407.512.4394 for a consultation.

February 9, 2017/by The Orlando Law Group

Protect Business Assets in Your Estate Plan

All posts, Business Law

It is best practice for a business owner to outline their wishes in his or her Last Will and Testament. In this document, a business owner can divide their assets among beneficiaries, and name an executor to oversee the distribution of both personal and business assets. If your business happens to be a sole proprietorship, in which you are the only owner, the executor should also be given access to the business’s digital identity; namely email accounts, bank accounts, accounting information, and social media sites. As wills are a matter of public record, this information should not be included in the body of the document itself.

Power of Attorney should also be established in the estate plan, to ensure that should the owner ever become incapacitated for any reason, an individual is named who has the authority to handle the everyday affairs of the business. This ensures that all facets of a company continue to work in the absence of its owner, including asset management, paying bills, making payroll, and all other vital functions that will ensure the company’s survival in the interim.

A strong succession plan should also be included in any comprehensive estate plan for business owners. This plan should be written out formally and prepared years in advance. A succession plan lays out the transition of a business’s leadership following the exit of its owner, and a new owner is established to take the reins. This person can be a family member, long-time employee, or anyone the owner fully trusts with the continued future of their company. For more information on succession planning, check out our blog entry HERE.

If your business is a partnership, in which you and another person share ownership, it is vital to have a buy/sell agreement in place. This important document details how an owner’s stake in the company will be distributed upon his or her departure. Whether a business partner dies, retires, enters bankruptcy, or files for divorce, your business must be protected. For more information on Buy/Sell Agreements, check out our blog entry HERE.

A strong and complete estate plan is vital to ensure that your business will continue to grow and thrive without you, or that your loved ones will be taken care of following the disillusion of your business assets. The attorneys of The Orlando Law Group are at the ready to help you create a strong and comprehensive estate plan, to ensure that your wishes will be upheld. Call 407.512.4394 to schedule a consultation today!

February 2, 2017/by The Orlando Law Group

VIDEO BLOG – A Succession Plan Ensures the Future of Your Business

All posts, Business Law

Planning for the future is an essential part of running your business, so why is there a risk of your business failing when you hand it off to the next generation? It’s because the future doesn’t always go according to plan.

Do you intend to transfer ownership to a family member? Or would you rather sell your business to the remaining owners or an outside party? A succession plan can help the transfer go smoothly.

“90% of US Firms are family-owned and 33% will make it to the next generation and 15% to the third. 71% have not completed succession plans.” says Jennifer Englert of The Orlando Law Group.

A written succession plan can benefit your business by providing mutually agreeable terms of sale, assuring employees and creditors of business continuity and reducing the potential for discord and litigation.

Protecting the rights of clients and dedicated to their success. The Orlando Law Group. We listen….we care…. we solve.

November 9, 2016/by The Orlando Law Group

“Why Should I Hire An Attorney For My Business?”

All posts, Business Law

Here are just a few of the important services offered by a business law firm:

Entity Formation: The most important step in creating a new business is the actual legal creation of that business. Whether you’re starting a Limited Liability Company, a Corporation, or a non-profit organization, there are a number of legal hoops that could easily trip up a business owner who is not savvy in such matters. The presence of an attorney aids in this process by providing your business with an experienced guiding hand who will ensure that all paperwork is properly filled out, all steps are taken, and that all aspects of your entity are legally protected.

Business Strategy: Once you’re off the ground, an attorney can help with your company’s overall strategy, providing advice and support in regard to the creation and implementation of debt and/or equity financing strategies, organizational structure and risk management, joint ventures, licensing arrangements, tax planning and more! A lawyer is a close confidant who can approach the issues that affect your company with an outside perspective.

Contract Negotiation: In business, it is often said that “you don’t get what you deserve, you get what you negotiate.” An attorney can examine all contracts and agreements set before you, and represent your company during negotiations to ensure the best possible arrangement is agreed upon, with respect to your wishes. Having an experienced guiding legal hand at the wheel in the midst of a contract negotiation grants you an added advantage and a layer of protection as you work towards strengthening your business.

Succession Planning: An attorney is a vital asset during the creation of your company, and so too shall they be at the end of the road. When the time to retire finally arrives, a business law firm will ensure a smooth transitional period as you phase out of day-to-day operations and pass along those responsibilities to a worthy successor.

Listed here are just a few of the many important facets of business law which The Orlando Law Group specializes in. Other services include: entity advisory and guidance, mergers and acquisitions, buy/sell agreements, business sales, estate planning for business owners, and policy reviews.

If you are looking for a dedicated, knowledgeable, friendly legal team to guide and advise your business, call The Orlando Law Group today at 407.512.4394!

September 29, 2016/by The Orlando Law Group

VIDEO BLOG – Can You Receive Workers’ Comp and Disability at the Same Time?

All posts, Business Law

September 16, 2016/by The Orlando Law Group

Steps for Successful Business Succession Planning

All posts, Business Law

1. Choose a worthy successor: Do you plan on leaving your company in the hands of a family member? Perhaps a long-time staff member? Either way, choosing the person to fill your own shoes can be a daunting task. It’s best for the business itself, to choose someone based on merit alone. If your oldest child has the perfect skill set, that’s wonderful. But for the sake of the business, it’s best to stay objective and ensure that the choice you make is the most qualified. It is generally accepted best practice to begin planning for succession up to fifteen years before you intend on retiring. This gives you ample time to test the waters, find your successor, and groom them to take over.

2. Implement a Training Plan: What are the critical functions of your company? It’s best to formally lay these out and familiarize your successor with the vital role they will be playing. Teach them to see the company through your eyes, to view it in a different light. Give them opportunities to take charge, and let them develop a managerial style which they can implement once it’s their turn at bat.

3. Stick to a Time Table: It’s important to create a detailed timeline in order acclimate your successor to their new role, and begin to phase yourself out. The transfer of responsibility should be gradual, and allow for your successor to acclimate slowly.

4. Develop a Retirement Plan: You need to think about your retirement, and ensure that your transition out of the workforce and into a well-deserved life of relaxation will go off without a hitch. To this end, plan out your life post-career. Where will you go? What will you do? Will you begin another business venture, or just enjoy a leisurely retirement? As your successor takes on more responsibilities, take the opportunity to ponder these important questions.

5. Install Your Successor: Before you walk out of your office door one final time, you must ensure that your successor has been fully installed with the tools he or she needs to achieve success. Be that guiding hand, but also know when it’s time to let go, and allow your successor to succeed or fail on their own.

As stated above, succession planning is a complicated process, and can be often times confusing and frustrating. The Orlando Law Group specializes in aiding our clients in not only starting their businesses but laying out a well thought out plan of succession. Call The Orlando Law Group at 407.512.4394 and schedule a consultation today!

September 15, 2016/by The Orlando Law Group

What Is A Buy/Sell Agreement?

All posts, Business Law

Also known as a “business will” or even a “business pre-nup”, a buy/sell agreement defines what is and is not allowed to transpire should a business partner, through either voluntary or involuntary circumstances, give up their share of the company. Does a partner’s interest pass onto their spouse or heirs upon their death? In the event of a divorce, does a business owner’s former spouse have a claim on their share? To whom can a partner sell their ownership? These are some of the questions that a buy/sell agreement answers.

Eventualities covered under the umbrella of a buy/sell agreement can be tailored specifically to meet a business’s needs. Many agreements cover circumstances including death, disability, retirement, divorce, and voluntary or involuntary transfers including sales or bankruptcy. It addresses situations in which an owner might sell their interest by discussing how they can sell, when they can sell, who they can sell it to and how much can they sell it for? This protects the business against being sold to an unwanted entity.

Partners can also place in the agreement a clause in which a co-owner must offer to sell their interest back to their partner or partners before offering it to an outside party. The benefits of a buy/sell agreement are self-explanatory; ventures can fail, personal tragedies can occur, and partnerships can dissolve.

Buy/sell agreements should be an early staple of any new company that will be sharing ownership. It is strongly recommended to have an attorney draft the agreement close to the inception of a business. The Orlando Law group specializes in the creation and implementation of these vital agreements, and our team of dedicated experts will walk you through every step of the process to ensure that your business is protected.

For more information, call The Orlando Law Group at 407.512.4394. Be prepared. Think ahead. Defend your business against future threats before they materialize.

September 1, 2016/by The Orlando Law Group

Do you have a great new idea that you’d like to see turn a profit? Are you looking to turn your hobby into income? Are you a whiz online and think you can make a buck designing iPhone apps? Whether your idea is big or small, simple or complex, virtual or brick-and-mortar, taking the step to become an entrepreneur and start your own business is a big one.

Armed with your idea and your business plan, the next step is answering one important question: How should I legally structure my business? In most instances, you will probably have to choose between a limited liability company (LLC), a partnership, a corporation, or a sole proprietorship.
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“How Should I Legally Structure My Business?”

All posts, Business Law

The legal and financial ramifications of this decision are significant. Plus, you really can’t move forward and take important steps such as registering your name or getting your tax ID number until you’ve answered this critical question.

We must note that circumstances vary among individuals and individual businesses. Determining which of these structures is right for your business is dependent on the type of business you want to run, how many owners it has, and its financial situation. No one choice suits every business. Business owners must pick the structure that best meets their needs.

The most important factors for you to consider will include:

· the potential risks and liabilities for your business;

· the formalities and expenses involved in establishing and maintaining the various business structures;

· your income tax situation; and

· your investment needs.

Here is a brief explanation of the main options that are available:

·        Sole proprietorships are the simplest of the legal structures, but they also lack many of the legal and financial protections of other business forms. Sole proprietors have the advantage of being their own boss, but also shoulder the burden of being solely responsible for the business’s success or failure.
·        Partnerships are the simplest type of legal structure to form for businesses with two or more principals. The potential downside is that while partnerships have no formal paperwork requirements, they usually don’t protect partners from liability. Partnerships can be tricky if there is disagreement over work ethic, goals, or roles in business and leadership styles.
·        A limited liability company (LLC) is a business structure that has features similar to both corporations and partnerships. LLCs protect the owner(s) from certain liabilities, including business debts, while the legal structure allows for a flexible management arrangement.
·        Corporations are limited liability partnerships that are separate and distinct from their owners. In a corporate business structure, shareholders have the right to participate in profits, but are not held personally/financially liable for the company’s debts.

Still uncertain? No worries! Business structures can change over time. Often, businesses that start out as sole proprietorships or partnerships grow, shifting to LLCs and corporations. If your business needs and plans change, your business structure can most likely change with them. The Orlando Law Group has a team of knowledgeable dedicated attorneys on hand who can answer any questions regarding this important topic, and give you further in depth information. Call 407.512.4394 and let our team guide your process.

August 18, 2016/by The Orlando Law Group

Thinking of Starting an Online Business?

All posts, Business Law

Your Business Plan: What is a Business Plan and Why Is It Important?

A business plan has two main purposes—to outline your business goals and to define the strategy for achieving them. Business plans are traditionally used when companies seek investors or commercial lenders. The business planning process will help your online business define a strategic blueprint for the operation and success of your company. A solid business plan will create your own unique identity and it will give you the confidence and documentation needed to get out there and pitch your idea, product or services to anyone. Basically if you have an idea for a product or service and hope to get potential investors, lenders, donors or business partners on board, a business plan is a requirement.

Declare the Controlling State Law

If you don’t declare the controlling state law, then anyone who sues you can determine the state law that applies. It is important to include somewhere in your online contracts or your website the controlling state of your business. If a plaintiff can show good reason for suing you from a particular state undeclared, that state’s laws will apply. This means that you could be ordered to court on the other side of the country. Chances are it could also mean that you will be more likely to lose based on the standards of the other state’s court. You may need legal help to create Online Terms and Conditions to declare the governing state.

Best Practices Suggest You Set Up a Separate Business Checking Account

In most states, including Florida, all business transactions are required to be made through a separate business account. This is extremely advisable and a benefit to your company if you want to receive the greatest number of business deduction possibilities, as well as maintain corporate protection. Remember, always keep your business finances and your personal finances separate. You don’t want to face expensive fees and penalties.

Privacy Policy and the Legal Disclaimers You May Need on Your Website

Many online businesses collect information in some way. If your intent is to grow your business by collecting information from your site’s visitors, you will need to protect yourself legally by establishing a Privacy Policy. This special policy sets forth what you will or will not do with information that you collect. Once you publish your exclusive Privacy Policy online, the requirement you will need to maintain is to “follow it”. Also and just as important, if you change your privacy policy you will need to notify the users. This protects you and will allow the users to accept the changes. Seeking legal advice is highly recommended in drafting your special Privacy Terms. There are Rules and regulations for conducting e-commerce that apply mainly to online retailers and other businesses who perform consumer transactions by collecting customer data. Important to remember, even if you do not sell anything online, laws covering digital rights and online advertising may still apply to you. The Federal Trade Commission (FTC) is the federal agency regulating e-commerce activities, including use of commercial emails, online advertising and consumer privacy.

Other Protections You May Need

There are many other topics you may need to explore in securing a safe Online Business Experience. At The Orlando Law Group, our diverse team of attorneys have a wide breadth of experience with roots that run deep in the community where we live, work and play. Our approach to serving clients is twofold. We believe in preventative action and proactive engagement to provide exceptional legal representation.

Identity Theft – And as Business Owner Your Responsibilities
Privacy Rules for Financial Companies
Children’s Online Privacy
Computer and Information Security
Selling Internationally/Exporting
Using Consumer Credit Reports
Digital Rights and Copyright Laws

August 4, 2016/by The Orlando Law Group

ATTENTION EMPLOYERS: IS YOUR SOCIAL MEDIA SENDING THE WRONG MESSAGE AS TO YOUR WORKERS COMPENSATION COVERAGE?

All posts, Business Law

If an investigator finds that an employer is performing work that is outside the classification codes for which their policy covers, they can report it to the State. The Department of Financial Services has the power at that moment to issue a stop work order. In order to release the stop work order, the employer will have to pay at least $1000.00. At that point, the Department of Financial Services will require the employer to submit payroll records and they generally require records for the preceding two year period.

The Department of Financial Services calculates the premium that should have been paid based upon what they believe were the classifications that were not covered on the policy. The penalty can be two times the premium that should have been paid within the preceding two year period or $1000 whichever is greater. Once the Department assesses their penalty, you have only 21 days within which to appeal it.

So, the Department could investigate an employer by looking at their website. If the website lists services that are not being covered under the policy, then they can send an investigator to confirm the employer’s activities. Your website and Facebook page could also show pictures of events or activities performed by employees and may provide evidence of misrepresenting employee duties. Often times, employers hire marketing companies to manage their website and Facebook page. These companies may use stock photos or captions that could incorrectly indicate the employer is engaged in services or activities that they are not.

If your business is issued a stop order, it is best to contact an attorney immediately. An attorney is able to gather all the required payroll records and make sure only those that truly represent payroll are submitted to the Department. The time deadlines are strict and failure to meet them can cause the business to pay penalties in excess of what they actually owe. In addition, an attorney has the knowledge of the classifications codes and whether the codes being applied by the Department are accurate.

July 28, 2016/by The Orlando Law Group

Is It Possible to Collect Workers’ Comp and Unemployment Benefits at the Same Time?

All posts, Business Law

Unfortunately, most workers are not eligible to receive unemployment benefits while they are getting temporary disability benefits under workers’ compensation. Florida workers’ compensation law doesn’t allow injured workers to collect unemployment compensation while simultaneously collecting temporary disability or permanent total disability benefits.

The exception occurs when workers who have been injured and then released by their doctors to perform light duty work. These types of workers may also receive unemployment in addition to workers’ comp benefits. Although in this situation both types of compensation can be collected, the disability benefits will be subtracted from the amount due under workers’ compensation. As a result, it’s not much of a “win” because one’s benefits will be reduced for any period of time that unemployment is also being collected.

If a work injury has left an employee with a permanent injury or disability, that worker will need to file for Social Security Disability since he or she will not be able to work again. Workers who need time off work to rest and recoup from an injury may be able to collect unemployment and Temporary Partial Disability benefits.

In order to understand these benefits, it is important to define what these different types of benefits really are.. Workers’ Comp benefits are available to injured workers when their employer carries workers’ compensation coverage. Unemployment benefits provide workers with some money once they lose their job. Additionally, unemployment benefits can be collected if an injured worker tries to return to his job but his employer no longer has work available. In order to receive unemployment benefits in this situation, the worker needs to be physically able and available to work.

Because trying to collect both types of benefits can be complex and each of them has their own rules and guidelines, you might want to speak with an attorney to help you navigate the complexities of benefits’ laws.

July 21, 2016/by The Orlando Law Group

The Florida Supreme Court makes long awaited impactful decisions in Workers Compensation

All posts, Business Law

So, these cases sat pending for 540 days and 735 days respectively since oral argument. These two decisions have now turned back the clock on major provisions of the workers compensation law. In Castellanos, the Supreme Court declared the attorney provision of the statute unconstitutional. The statute had been changed in in 2003 such that an attorney representing an injured employee was strictly restrained to a formula fee based upon the value of the benefits secured. Prior to 2003, the statute allowed for a reasonable fee which would further allow for an attorney to receive their fee based upon the reasonable hours to secure the benefits. In coming to this ruling, the Court explained that the attorney’s fees in Florida Workers’ Compensation serve a dual purpose. First, the fees enable the injured worker who has not received benefits to obtain competent legal assistance. Secondly, the fees serve as a penalty to employers that are wrongfully denying benefits. As a result of the Castellanos decision, the attorney for the injured worker has the ability to show that a statutory or formula fee will result in an unreasonable fee and thereby assert a fee based upon the hourly basis.

The Court in Westphal declared the provision of the statute, 440.15 (2), as unconstitutional. This section limited the injured worker to 104 weeks of temporary total disability. The Court stated that this limitation deprived the injured worker of disability benefits under these circumstances for an indefinite amount of time which created a system of redress that no longer functioned as a reasonable alternative to tort litigation. Workers Compensation Insurance provides the Employer with immunity against a civil action. As such, the injured worker gives up the right to sue them in tort for exchange of workers compensation benefits. The Court found that the limitation to 104 weeks was no longer a reasonable exchange for giving up the rights.

To provide some history, Westphal involved a firefighter who had exhausted his 104 weeks of temporary benefits and sought Permanent Total Disability benefits. However, he still required additional surgeries and did not meet the pre-requisite for Permanent Disability Benefits because he had not reached Maximum Medical Improvement. Thus, he fell into a gap period between exhausting the temporary benefits and being able to pursue permanent benefits. The Supreme Court found this gap period violated access to courts and cut off their benefits at a critical time with no redress. In declaring it unconstitutional, the Court revived the 260 week limit on temporary total benefits that existed in the pre-1994 version of the statute.

WHAT EFFECT WILL THESE DECISIONS HAVE ON EMPLOYERS

As a result of the Castellanos decision, we have seen an immediate spike in attorney representation for injured worker’s claims and the filing of claims. Moreover, there were awards of attorney’s fee to claimant’s attorneys going back several years which had just been sitting out there. There was no way to push the fee issue and the claimant’s attorneys were waiting until this decision in order to pursue an hourly based fee. We are seeing the filing of Verified Petitions for Fees to resolve those old fee awards on an hourly basis. While the starting point still remains the formula fee, there is no doubt that we will see more litigation as claimant’s attorneys will have an incentive to take more depositions and engage in more litigation in order to provide evidence that the statutory fee would produce an unreasonable result. We will see their willingness to litigate smaller issues as there is an incentive to do so.

With Westphal, there is still some ambiguity as to the extent the limitation of 104 weeks applies. The Court’s decision rendered the statute unconstitutional only “as applied to Westphal and others similarly situated”. Thus, the ability to secure the additional weeks may be dependent upon how similar the injured worker is to Wesphal. In the pre-1994 statute, it provided 260 weeks for temporary total benefits and a separate 260 weeks for temporary partial benefits. As such, this decision could mean the injured worker is entitled to up to 260 weeks of temporary total and that includes the 104 weeks of temporary partial. Alternatively, the decision could mean the injured worker is entitled to up to 520 weeks of combined temporary total and temporary partial. Nonetheless, we can expect that there will be a push for injured workers to remain on a no work status for as long as a period of time as possible.

Because of Castellanos and Westphal, the exposure for claims has increased which means an increase in attorney representation and filing of claims. NCCI originally filed for a rate increase of 17.1% for workers compensation policies. However, they just filed on July 1, 2016 an amended rate and proposed 19.6% with an effective date of October 1, 2016. So it will now cost the employer more for policies and they will be faced with increased claim exposure.

WHAT CAN BE DONE TO MINIMIZE THE IMPACT

It is critical for Employers and their Insurance Carriers to thoroughly and accurately evaluate their claims at every stage in order to provide the appropriate benefits and negate those areas for potential fee entitlement. The medical experts selected to provide treatment will be critical to reigning in the claimant’s desire to remain out of work as long as possible. It will be necessary to make sure that the medical provider is applying objective criteria in determining work status and the placing of the worker at MMI. A knowledgeable attorney will be able to address issues and design an appropriate strategy to help Employers and their Insurance carriers through the process.

By Attorney Heather McLeod

July 15, 2016/by The Orlando Law Group

Bankruptcy Might Not Be as Difficult as You Think

How Bankruptcies Work

What is bankruptcy protection?

What steps should I take before filing for bankruptcy?

Can bankruptcies be avoided?

Do I need a lawyer to file?

Corp & Business Owners, Prepare for the Tax Cuts and Jobs Act Changes

What’s changed for corporations under the new Tax Cuts and Jobs Act?

What’s changed if I own a small business?

Business Loan Interest Deductions

Other Deductions as they relate to the 2018 Tax Cuts and Jobs Act

Three Reasons to Hire an Attorney

How to Manage Without a Formal Office

Are Your Board Meetings Effective?

How to make your board meeting more productive