Business Law Archives - The Orlando Law Group

Trademarks – What You Need To Know

Trademarking the logo and name of your business is essential to maintain its originality in a world where people have the tendency to see an idea that works and try to make it their own. Not everyone takes the appropriate steps to ensure that their company name is registered to only be used by them. Not only this, Trademarking is commonly used as a catch-all phrase and its definition becomes ambiguous. In this article, we will provide clarity on the matter. Let us start by defining what Trademarking really is.

What is Trademarking?

Trademarking is the registration process that prevents others from not only using the name of your business, but the symbol that accompanies it and/or the design you worked so hard to create. This process also compares your mark alongside all other previously registered marks to verify whether it is already taken or is similar to an existing mark. Trademarks allow you to exclusively use of your own symbol and name in your ordinary course of trade (the sale of goods or services), within a certain geographic area.

A Tale of Two Businesses

It is important to note that even after trademarking your logo, there will always be others who attempt to use the likeness of your business and even downright attempt to sell the same product and/or provide the exact same services you do. Take the case of Paris Banh Mi Café Bakery as an example in Orlando. The original registered trademark owner has sought to stop a former partner from using almost the exact same name for his business, Paris Banh Mi & Tea Cafe. When this type of infringement occurs, depending on how the mark is registered, mark owners can bring a civil action in state or federal court against those who attempt to replicate their name.

If the first mark owner is successful in proving that he owns a valid, protectable trademark, and that there is a likelihood that confusion will be caused by the copycat’s use of his mark, an injunction may be ordered. This will require the copycat to cease all use of the name. There are other remedies that the Court may order, such as destroying or turning over of any product that uses the mark owner’s name, monetary relief including profits made by the copycat, any damages sustained by the mark owner, and any costs sustained as a part of the action being brought or an order requiring that the copycat pay for the mark owner’s attorney’s fees.

In this case, the former partner was second in line to register his mark and therefore, Paris Banh Mi Café Bakery has a stronger likelihood of obtaining an injunction against Paris Banh Mi & Tea Café.

Trademark Infringement Factors

There are several factors that the court will take into consideration when determining that a party has infringed upon an already existing trademark. Those factors include:

The resemblance between the marks
The similarity of the marketing methods and channels of distribution
Characteristics of the prospective purchasers and the degree of care they exercise
The degree of distinctiveness of the senior user’s mark
Where the goods or services are not competitive
The likelihood that prospective buyers would expect the senior user to expand into the field of the junior user
Where the goods or services are sold in different territories, the extent to which the senior user’s designation is known in the junior user’s territory
Intent of the copycat user
Evidence of actual, legitimate confusion

Source: Anderson v. Upper Keys Bus. Grp., Inc., 61 So. 3d 1162 (Fla. Dist. Ct. App. 2011)

What about Dilution?

Dilution occurs when a business of a different trade begins to use a famous mark, which then causes the uniqueness of the famous mark to diminish or tarnishes the mark’s reputation. When this happens, the court investigates how distinct the service or product containing the similar mark is compared to the original mark holder’s service or product. They will also consider how long and to what extent the product or service is used and advertised, as well as the degree in which prospective purchasers can recognize one from the other.

In an action for dilution, an injunction may be brought against the user of a mark if said mark has become widely recognized by the general public, and if the use of the mark is likely to cause the diminishment of its distinctness. In other words, if a mark is so well know that it is instantly associated with a product, anyone who tries to replicate the mark and place it on a good or service that is different from the famous mark holder’s good or service, may be prohibited from doing so, based on the fact that it may cause confusion.

Where is the Line?

Trademark Law, which is notably different from copyright law, does indeed have gray areas. Where copyright law encompasses original works of authorship, such as books, musical compositions and artistic pieces, Trademark law provides ownership of a phrase or name of a good/service. The line, many times, falls between whether the infringement marks a significant business venture. That is why, if you’re considering creating a business of any kind, your trademark is going to matter, and how your business is protected will minimize any gray areas that can potentially exist.

How to Register Your Trademark

Registering a trademark can be done individually by state or on a federal level. For example, Florida charges $87.50 per classification, which is essentially the area that you would like your trademark to encompass (clothing, mugs, gaming, advertisement, or services providing for food or drinks). A Federal Trademark is sought from the United States Patent and Trademark Office and costs between $225.00 – $275.00 per class of goods or services, which will allow you to stake your claim in your own name, throughout the entirety of the U.S. When you go through this process, it is a good idea to seek an attorney to not only help you to not only navigate uncharted waters, but to ensure that all due diligence is maintained.

Our Advice

Start your business on solid ground. If you are going to plan and spend time formulating a company, you deserve to get the foundation to a level where you can feel confident and comfortable. When Paris Banh Mi Café Bakery created their company, the partnership was strong, but that did not last forever. The owner of the store is fortunate he filed the trademark early. That action created legal armor that will protect the rights to his business name, which may encompass the products being sold. That is why trademarks matter, and that is why you must get it right from the very start.

As always, our attorneys can help make sure you have that legal armor. They know the pitfalls, and know how to avoid them, so that when you are ready to begin your next business venture, you know who to call.

September 23, 2020/by The Orlando Law Group

For TikTok…The Clock Is Ticking

All posts, Business Law

Social Media is much more than a tool. It is even more than a product. It is, simply put, a way of life. Just like mobile phones slowly became standard, everyday technology, so too have platforms such as Facebook, Instagram, and now – TikTok. The premise behind the app is simple, short video content that rewards syncing the action to music combined with a “for you” page that tailors what you find based on your interests. A slow yet steady pace of growth has allowed TikTok to rise as a platform of choice for young adults, but nothing could have prepared the app for the notoriety it is receiving now.

The Time Frame

Trouble arose when the stream of data aggregated from the platform was put into concerning crosshairs. The company that owns TikTok, ByteDance, was called into controversy when President Trump stated that he would consider banning the app, given the fact that it could potentially make US user data accessible to the Chinese government.

Instead of immediately banning the app, the President instead, on August 8^th, gave a time frame for the company to become compliant. This executive order gave TikTok about a month and a half to successfully locate a buyer. This time-frame was later extended to 90 days, and ByteDance was ordered to delete any data obtained from U.S. TikTok users.

An Uptick in Users

For TikTok, business has been booming. With the pandemic creating a sense of isolation for many individuals, the app has surged in popularity. This being said, the U.S. isn’t alone in its trepidations. India has already banned the app, and Australia is said to be considering it as well.

The significance of this executive order cannot be understated. It marks an important, invisible currency that apps attain: your data. Apps like TikTok can attain large tracts of information from their users, such as location data and browser history. It’s a new world we live in, one where this transaction of data happens so frequently that we have become accustomed to it. How many individuals do you think truly read the terms of service?

Predictive Precedence

You may be thinking to yourself, “I don’t use TikTok, so how does this apply to me?” The truth is that we all use social media to some degree. It has become a way of life, and with that comes the sharing of swaths of data that used to be harder to attain. We need to know that with this sharing comes a potential vulnerability to so much transparency. Without the full understanding of how that information is being used, it can set dangerously complex legal stages that are difficult to navigate. Although there is no proof yet that the Chinese owned company ByteDance has relinquished any personal data to the Chinese government, understanding that the potential exists is a reality we must confront.

Our prediction, as a Law Firm, is that companies will come under more scrutiny in the future. Even those that are owned domestically are not without their faults. Facebook was in the spotlight this year for its decision to abstain from fact-checking. Notice a similarity? Both cases carry the concern about the passage of information, and how that information is put to use.

We can absolutely attest to the fact that court cases take into consideration social media presence. Photo evidence, especially photographs that contain vital information such as where the photograph was taken and when, are powerful and can culminate in a decisive moment for the client’s case. The old adage, “With great power comes great responsibility,” remains true. With so many users giving their information so freely, there is a great deal of responsibility placed upon the company to be transparent with how that information is handled.

Buyers Coming to the Rescue

Still, you don’t have to delete your TikTok account just yet. The fact remains that, for the app to remain viable in the United States, the clock is ticking to find a buyer for the company. Corporations like Microsoft, Walmart, and Oracle have expressed interest in ownership, and this would be a significant solution in keeping the app usable. If that sale does not happen, the government could act by eliminating the downloading of the app from the Apple and Google store.

Many tech specialists believe this will not stop the use of TikTok, mainly because users can still install rogue apps on Android devices without accessing the Google Play Store. The precedence this sets is for the U.S. Government to have executive power over the download and use of applications, regardless of cause. It is a complex scenario, given the fact that by waiting to prove that information has been compromised, we run the risk of losing data that could have been protected.

The Potential Victor

Microsoft announced on Sunday that its bid for ByteDance has been rejected. The announcement stated, “We would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combating misinformation. We look forward to seeing how the service evolves in these important areas.” It would appear that, based on this language, Oracle has emerged as the potential victor and, barring negotiations that are planned to take place this week, will be forming a partnership with TikTok to ensure the application remains viable in the United States.

How this can improve data control and confidence that information is not being ascertained in a potentially destructive way remains to be discovered. Oracle is expected to make an announcement later with discussions evolving this week on the matter. The clock is ticking to finalize a deal, but TikTok may be one step closer to finding a viable avenue to sustain their presence in the United States market, a rumored 100 million monthly active users.

September 14, 2020/by The Orlando Law Group

You Should Never Make These Real Estate Mistakes

All posts, Business Law, COVID-19, Real Estate

The Real Estate industry is filled with victories, losses, and mistakes. The fact that there are so many Realtors and so much business being conducted means that there is a high propensity for ingenuity as well as massive opportunities for pitfalls. You may have passed the Real Estate exam, and you may have a handful of experience on your resume, but that does not mean you have experienced it all. That does not mean that you are infallible. Whether you’re a Realtor working in the industry for the first time helping someone sell their home and upgrade or a seasoned investor looking to gain your next big investment property, these are great reminders of what not to do.

Over the years, many real estate and small business owners across the U.S. have witnessed numerous mistakes that have cost them thousands of dollars in overpaid taxes. We at The Orlando Law Group do not want that to be you (if it ever is call us). We want you to have a deep understanding of the mistakes people make before you must litigate. If you are looking to invest or simply finding ways to run your business like a business, never make these Real Estate mistakes:

Personal funds used for business and real estate expenses are nondeductible

If you are going to use your own personal funds to pay for real estate or business-related expenses, it is important that you are clearly tracking the expenses. Any expenses that are incurred for the business or for real estate are generally deductible, even if you use your personal money. The line between the two should be quite bold, and there should be distinct differences between personal finances and business finances. We have all heard of

Overpaying (Tipping) the IRS will make me “Audit Proof”

Rather than go over, or under, when dealing with taxes it is best to get it right. Err on the safe side and always pay exactly what you owe to the IRS. If you constantly under pay your taxes or cannot substantiate your deductions, then the IRS starts to take notice.

Even if you tip the IRS in one area, it does not necessarily mean the IRS will not make you pay penalties if you underpay in another area. Additionally, it is important for you to make sure to track everything correctly and have the right documentation. To ensure this, it would be best to have a knowledgeable tax advisor to help you with the process.

You are allowed more deductions by being incorporated

If you have a legal entity to operate your real estate business from, make sure to use it correctly. Forming a legal entity does not actually mean that you get more tax deduction. Real estate or business-related expenses may be deductible regardless of where it is paid from. Make sure that your income is being paid to your legal entity. If you need help setting one of these up, we are here to assist you. So many individuals think that they can run a business without being incorporated, but there are real advantages to going through the necessary steps. We can show you how.

Utilizing the Home Office Deduction Incorrectly

Currently, the above statement no longer applies. In fact, since there are so many people that work from home, the IRS cannot audit all tax returns claiming home office deduction. The key is to keep excellent records to satisfy the IRS’s requirements and you should avoid an audit. Make sure to benefit from the home office deduction, and if you have any questions about grey areas, reach out to us. We have worked with many individuals who run their business from a home office, some for many years of their life.

Claiming Deductions That Are Out of the Scope of Your Business

There are still ways to claim many deductions from your real estate business even if you do not take the home office deduction. Some of the items that you can still take deductions for include: real estate maintenance supplies, business-related phone bills, travel expenses, wages paid to contract workers for property improvements, depreciation of equipment used, and other home-based related expenses. Claiming items on your deductions can sometimes be treated like an art rather than a science. We recommend having a scientific, consistent, and tested approach. Never make assumptions by yourself, and include others’ perspectives to make sure you’re claiming the right items.

Filing an extension gives you an extension to pay any taxes owed

Even though filing an extension allows you to extend the filing date of your tax return, it does not extend the time you have to pay the taxes that are due. You still might be charged penalties and interests from the date your taxes are due if you have not submitted them on time. Make sure you set a schedule and keep to that schedule. If you need to, set reminders. Have business partners hold you accountable, and do not let taxes owed build up over time.

You Cannot Deduct General Expenses

Real estate investors have proven to be great at deducting property specific expenses such as mortgage interests, management fees, property taxes, and insurance. However, a lot of investors miss out on general and overhead expenses that real estate businesses have. These include car or travel expenses, marketing expenses, cell phones, and meals. If these expenses are directly related to your business, then they can be deducted. The key is having them planned and managed. With a good budget and great records, you will be able to successfully communicate where your business falls in terms of deductions.

Everyone is used to filing taxes every year, but big businesses try to look at their expenses quarterly. Attaining tracking practices that will maintain good habits and records is vital to understanding what occurs financially over time. Without systems and processes that you hold onto, it becomes easy to have details fall through the cracks.

We at The Orlando Law Group want you to stay aware of the mistakes that others often make. They may seem simple, but when you are running your business, it is easy to get lost in the day-to-day tasks and forget about these overarching items. As always, when there are grey areas involved, it is best to consult a legal professional. We take taxes seriously, and so will the government. We have seen cases where, if the business had been more preemptive and planned better, they would not be in the middle of an audit. This is only meant to encourage you to have a plan, know the pitfalls, and when you need advice, call us. We want to help, and we are here to make your life easier and your business that much better.

July 17, 2020/by The Orlando Law Group

Commercial Leases: What You Need to Know Right Now

All posts, Business Law, COVID-19, Real Estate

Courts have been slow to reopen and deal with eviction issues. Commercial lease evictions are able to continue, but practically they will still take time to get through the courts, so now is the time to try to work things out if possible to save time, money, and stress. Some considerations to think about with your commercial lease are as follows:

Considering How Shopping Center Commercial Leases are Unique

The fact that shopping center leases have co-tenancy provisions makes them unique and could grant tenants more options in court. The goal of this co-tenancy is to ensure that stores do not miss out on opportunities because other stores are closing and causing a continual downswing in foot traffic. In terms of the battle between landlords and tenants, tenants may have a potential argument that the landlord has not fulfilled its co-tenancy obligation.

It is important to note that one of the factors that many tenants’ arguments will stand upon is whether COVID-19 indeed prevented them from paying their rent. One of the considerations that many landlords are taking is the potential to fill the spot that would be left vacant.

Factors that will affect such decisions include supply and demand as well as how desirable the location is. It may even be more advantageous for landlords to settle disputes out of court, but we are certain once the moratoriums subside, the courts will see an influx.

What Exactly Is Co-tenancy and How Could It Apply?

When more than one entity has an interest in a property, co-tenancy agreements usually apply. In commercial property, many times increased traffic will cause businesses to be more successful over time. The inverse is true as well, with businesses that are forced to shut down causing damage to the potential of the stores that are left.

Many times, to assist with the finances of these stores, landlords will lessen the rent of the co-tenants. It is all up to the landlord and the documents that the businesses signed when they first decided to become situated in that location.

Complicating matters more is the fact that PPP Assistance may give a business the appearance of operating at a standard level when foot traffic is drastically lowered because of rising positive COVID-19 tests.

With a lack of pandemic provisions written into leases, landlords and tenants are having to get creative with the options that they are afforded. Co-tenancy has often been used to help businesses that are suffering due to the lack of success from an adjacent commercial listing.

However, what happens when an external factor is causing many of the businesses to suffer? It may just be that a battle is looming on the horizon between landlords and tenants, and every month we get a little bit closer to that battle becoming our reality.

What Options do Landlords Have?

Although landlords are in a predicament when it comes to shouldering tenants that are not paying rent, there are many points to take into consideration before filing for eviction.

For the high-end shopping centers, they may have the footing to stand on, mainly because filling the empty location will not be as difficult. For areas with less foot-traffic, landlords may be encouraged to work with their tenants.

Depending on the language found in the contracts signed between the owner and the occupant, some owners have been able to offer concessions to assist their tenants during this time; however, many are not going to be able to make such offerings.

Some have speculated that eventually, owners may turn to lenders to try and gain permission to offer concessions. The fact remains that all three parties are in a mode of cautious speculation over what options they may have to maintain some semblance of the bottom line when it comes to their businesses.

Although insurance does not usually cover pandemics, that could change down the line. Lenders are looking at options that involve insurance that would help landlords and, in turn, help their tenants through difficulties that are out of their control, such as a pandemic.

An important factor is assistance afforded by the PPP loans from the Cares Act. Even with an extension and another assistance check, the potential ending point could be early August when the program is set to expire.

We could be looking at many agreements being modified and tensions rising between landlords and their tenants as that time approaches. Once the PPP loans expire, we will be seeing an entirely different operating pattern for landlords and the businesses they rent to. That dreaded conflict could create many vacancies and fluctuations in the commercial market. We must be ready.

A Wave of Litigation on The Horizon

We believe that, although you can stave off conflict, many times it is only buying time that will eventually run out. With difficulties being placed on both sides, we certainly predict a wave of litigation concerning these issues.

Our recommendation is to cross these bridges before they are at your feet. One of the best practices you can have with the businesses you work with is to have open lines of communication. Of course, when relationships become too contentious to resolve certain complications, it becomes necessary to have a legal professional help.

Being situated where we are, The Orlando Law Group is keeping our focus on what we can do to help commercial businesses and their landlords through this difficult time. It could be the simple act of looking at your documents to have a deeper understanding of the potential you will have when facing mounting litigation.

When there is no easy answer, the law is there for us to rely upon, and we are remaining cautiously hopeful for the future. Businesses will have to adapt as well as their landlords, and as we go through this change, we will find new ways to protect the financial future of our endeavors.

July 8, 2020/by The Orlando Law Group

[Advisory] Understanding the Paycheck Protection Program Flexibility Act

All posts, Business Law, Community, Consumer Law, Coronavirus, COVID-19

Here is a round-up of what we know about the Paycheck Protection Program Flexibility Act that was signed into law this past Friday.

President Trump signed into law the Paycheck Protection Program Flexibility Act (PPPFA) with the intent of easing requirements for loan forgiveness under the PPP loan program.

Here is a brief review of what is included in PPPFA:

Changes in the required spend on payroll

The requirement to spend 75% on payroll costs has been adjusted to 60%. The requirements for using the remaining 40% (formerly 25%) have not changed; intended use includes rent/mortgage payments and utilities.

Increase in the timeframe to spend the loan proceeds

The PPPFA extends the time to spend loan proceeds from 8 to 24 weeks.

Since the PPP loan calculation included the average of monthly payroll costs in 2019 multiplied by 2.5, providing more time to use the funds should allow businesses some breathing room to spend the loan proceeds on qualified expenses.

Important notes on the PPP loan compensation

The timeframe to apply for forgiveness has not changed; businesses can apply for forgiveness as early as eight weeks after receiving proceeds.

The deadline to rehire employees is pushed back to December 31, 2020, giving employers a bit more flexibility in getting wages to count towards forgiveness.

The requirements to rehire employees have also been eased. However, employers need to document carefully, in writing, attempts to rehire an employee who rejected the job offer.

If an employer can demonstrate an inability to hire a similarly qualified individual, the business may still qualify for loan forgiveness.

If a business is unable to return to the same level of activity that was engaged before February 15, 2020, the business may still qualify for loan forgiveness.

Extension on repayment

The terms for loan repayment have been extended from 2 years to 5 years. The repayment schedule now defers the first payment for six months after the SBA makes a forgiveness determination

The loan repayment term is extended from 2 years to 5 years. The first payment will be deferred for six months after the SBA makes a forgiveness determination.

PPPFA allows businesses to take advantage of deferring the employer’s payroll taxes. Initially, the CARES Act did not permit deferment on the forgivable portion of the loan.

The deferrable amount is the employer’s portion of social security taxes that would have otherwise been due between March 27, 2020, and December 31, 2020. Now, 50% can be deferred until the end of 2021, and the remaining 50% is due by the end of 2022.

Breathing room for business working to operate at 2019 levels

This new law appears to be a step in the right direction. For companies that have been unable to perform at the same levels as in 2019 and early 2020, this law provides some breathing room.

In the hands of the SBA

It will be up to the SBA to interpret the Paycheck Protection Program Flexibility Act. Our recommendations on moving forward include meticulously documenting every financial transaction in your business and making sure you pay close attention to the expenditures that qualify for loan forgiveness.

June 10, 2020/by The Orlando Law Group

What to do now if there’s a chance of future bankruptcy

All posts, Bankruptcy, Business Law, Coronavirus, COVID-19

Filing for bankruptcy is on the minds of many people right now. For some, it’s clear that the only solution available to free them from financial hardship is bankruptcy. For others, it might not be a consideration, but should it be?

If you have recently lost your job or the current economic conditions are making it difficult or impossible to pay your debt, it might be advantageous to file for bankruptcy.

In either case, whether you know that bankruptcy is your only option or it is just entering your thinking, it is time to planning strategically. You might need to forget about conventional advice on money management and begin thinking differently.

We’ll explain.

It should be no surprise that we are having this discussion as a result of the coronavirus pandemic. The virus and COVID-19 have caused staggering numbers of people to lose their jobs, businesses to shutter operations, and economies around the world to topple.

Some suggest that it could be a year before we see signs of recovery. Maybe longer by some estimations.

So what does this mean for you or your business? If you or your business are struggling to stay afloat, is a bankruptcy on your list of options?

If bankruptcy is in your plan, and it probably should be, here are the things you should be doing right now.

Talk to a bankruptcy lawyer as soon as possible

If you currently cannot pay your debts or you believe that you will soon face insurmountable financial hardship, now is the time to seek out a bankruptcy attorney. A reputable and ethical bankruptcy attorney will offer a free consultation. You will need to understand the types of bankruptcy available to you, the attorney can help with that.

The move that most people make when money gets tight is to get the advice of a financial planning expert. But if bankruptcy is a real possibility, your best move is to speak with a bankruptcy lawyer as soon as possible.

The people who do best after bankruptcy are typically those who worked with a legal expert well in advance of filing.

The strategies you need to employ before filing for bankruptcy are unique to your situation. With the help of a bankruptcy attorney, you’ll be more prepared for what will happen before, during, and after the bankruptcy.

Need to speak to a bankruptcy lawyer? Start here.

Clearly evaluate your situation and don’t rush to file bankruptcy

One of the biggest benefits to working with a bankruptcy lawyer well before filing is the knowledge about the process that professional counsel can share.

Because there are time restrictions on how often you can file for bankruptcy, you’ll want to make sure you are in a position to get rid of the maximum amount of debt.

Also, it is essential to consider what might happen if your financial position changes between now and filing for bankruptcy. If your situation improves, should you back out of filing? If it worsens, should you file more quickly?

Working with an experienced attorney will help clarify the answers to those questions and give you peace of mind as you move forward.

If you have a large amount of cash, it’s time to protect it from creditors

Many people do not realize that if you have stockpiled cash in a checking or savings account, that money can be seized to pay your financial obligations to creditors.

Protecting the money you have is critical.

A bankruptcy attorney might advise that you move that money into something like an individual retirement account. In broad terms, if you were to put the money into a Roth IRA, you could still get access to the money if needed and it would be protected from creditors.

Resist the temptation to sell things to pay your debt

If there is even a chance that you are going to be declaring bankruptcy, selling unused or underused possessions to pay credit card or other debt should be taken off your to-do list.

Why? When you complete a bankruptcy, you will have erased your debt. Paying that debt before filing might feel like you are doing the right thing. But the money you could get from selling things might be better used after the bankruptcy.

Leave your retirement plan alone

It might be tempting to consider taking money out of your retirement accounts to pay debts, student loans, or other secured and unsecured debts. But this is generally something you want to avoid.

Even before coronavirus, bankruptcy lawyers would advise leaving your retirement funds intact because they are generally protected from creditors.

Also, there are new retirement fund coronavirus hardships withdrawals which let people acquire up to $100,000 from their 401(k)s or IRAs without penalty. And while these withdrawals are taxable, if they are paid back within three years there are provisions to reverse that tax.

The problem is, if you are facing bankruptcy, it’s likely that you will not be able to pay back the withdrawal. So, using that money to pay down debt could create further financial hardship in the future. It’s a good idea to avoid that.

Tirelessly explore your forbearance options

If your financial future is cloudy and you are unsure if you will quickly get a job or be re-hired by your employer, exploring forbearance options is important.

In forbearance, a lender will allow you to skip some payments on your loan. Skip does not mean that those payments are erased, but instead means that those payments will need to be made in the future.

If you are a consumer filing Chapter 7 bankruptcy, your unsecured debt like credit card debt will be eliminated. Secured debt like your car loan or mortgage generally will not be erased. Forbearance on secured loans like these can offer a bit of financial breathing room and allow you to use the money you have to pay for the absolute necessities like food and utilities. You might also need the money to pay your bankruptcy lawyer’s fees and filing fees.

A bankruptcy lawyer can explaing your forbearance options? Start here.

Do this right now

It should be clear that if bankruptcy is even a remote possibility for you, there are many steps you need to take. Being strategic and moving away from the advice you might get in credit counseling will often make things better for you during your bankruptcy proceedings.

Debt relief is on the minds of just about everyone right now. If this is you, talking with a bankruptcy lawyer is something you should do right now.

May 21, 2020/by The Orlando Law Group

Opening Up Phase One: A Guide to Re-opening Associations

All posts, Business Law, Community, Consumer Law, Coronavirus, COVID-19

As we enter Phase One of re-opening Florida, a question in all of our minds is, how does this affect re-opening associations and our communities? As managers and board members, we are sure you are getting a lot of pressure from both ends of the spectrum. On one end, protect the residents, and on the other, open everything up! While managers and board members certainly have no legal obligation to guarantee the health and safety of their residents, there is a degree of care that is expected given that the Association is responsible for the maintenance and the running of the Association amenities. The Association can be held liable for negligence for failure to take precautionary steps in light of foreseeable harm.

It is accepted that we are amid an international healthcare crisis that has been acknowledged and addressed by our National and State Government officials. With guidelines from the Center for Decease Control (CDC) and State officials, it is reasonable to expect that residents would have a right to hold a Manager and their Association board to a Duty of Care comparable to those standards.

While the board does have the authority to shut the Association amenities down, per the DBPR issued Emergency Order 2020-04 (Florida Statute 718, 719, 720 Board Emergency Powers have the same application under this order as they do under the Statute), we are not saying this is always in the best interest of the Association.

It is a case by case situation and will depend on the amenity, the resources of the Association, the Association documents, the location of the Association, and the particular circumstances affecting that Association. Below are some general guidelines to assist you with beginning your “reopen” discussion. However, we strongly recommend you speak with your attorney before implementing any plan.

Phase One: A Guide to Re-opening Associations Step 1:

Are you insured? It is crucial that the Association contact your insurance agent and determine what exposure the Association, the board members, and managers have by reopening the amenities. Some policies do have bacterial exclusions, but most policies do not have viral or infectious disease exclusions.

Phase One: A Guide to Re-opening Associations Step 2:

Create specific guidelines for each amenity within the Association. Generalized instructions and waivers are easy, but also create more of a gray area, opening the door for potential claims against the Association. Having specific guidelines and exemptions for each amenity shows that the Association took the extra steps to ensure that the residents were aware of the particular restrictions for that amenity and accepted and agreed to abide by the rules for that specific amenity.

Tennis Courts/ Racketball Courts

Require residents to sign a waiver/ disclaimer before use
Post guidelines/rules next to court
Remove observation seating
Limit playtime to allow usage by maximum residents and consider a signup sheet with time slots to avoid gatherings
Provide disinfectant wipes and hand sanitizer or require residents to bring their own and wipe down all equipment after use
Require proper social distancing of 6’ at all times

Swimming Pools

Require residents to sign a waiver/ disclaimer before use
Post guidelines/rules next to the pool and within the pool area
Remove all pool furniture and suggest residents bring their own if desired
Close off all areas except the pool and direct access to the pool
Limit the number of residents allowed at a time to adhere to the social distancing guidelines and consider a maximum time limit to allow all residents an opportunity to enjoy the facilities.
Consider a signup sheet with time slots to avoid gatherings and disappointments.
Provide disinfectant wipes and hand sanitizer or require residents to bring their own and wipe down all equipment after use
Require proper social distancing of 6’ at all times
Consider having an Association attendant at all times the pool is open to ensure the rules are being followed.

Community Workout Room

Require residents to sign a waiver/ disclaimer before use
Post guidelines/rules next to the workout room and within workout room
Require face mask to be worn when not working out
Require personal gloves to be worn at all times
Limit the number of residents allowed at a time to adhere to the social distancing guidelines and consider a maximum time limit to allow all residents an opportunity to enjoy the facilities.
Consider a signup sheet with time slots to avoid gatherings and disappointments.
Provide disinfectant wipes and hand sanitizer or require residents to bring their own and wipe down all equipment after use
Require proper social distancing of 6’ at all times
Consider having an Association attendant at all times the workout room is open to ensure the rules are being followed and equipment is wiped down after each use.

Basketball Courts

Because basketball is a contact sport, we are recommending at this time that basketball courts remain closed.
You can consider removing the rims to ensure that no play will be permitted.
Post clear signs that the court is closed until further notice

Playgrounds

We are recommending at this time that playgrounds and child play areas remain closed.
Post clear signs that the playground/play area is closed until further notice

Spa/Jacuzzi

We are recommending at this time that spas and jacuzzies should remain closed at this time.
Post clear signs that these facilities are closed until further notice

Restaurants

We are recommending at this time that these should remain closed at this time.
Post clear signs that these facilities are closed until further notice

Clubhouse Meeting Rooms

Require residents to sign a waiver/ disclaimer before use
Post guidelines/rules next to the facility and within the facility
Require face masks and gloves to be worn when appropriate
Limit the number of residents/guests allowed at a time to adhere to the social distancing guidelines and consider a maximum time limit to allow all residents an opportunity to enjoy the facilities.
Consider a signup sheet with time slots to avoid gatherings and disappointments
Provide disinfectant wipes and hand sanitizer or require residents to bring their own and wipe down all equipment after use
Require proper social distancing of 6’ at all times
No gatherings of over ten individuals at this time per State requirements
Consider having an Association attendant at all times that the facilities are open to ensure the rules are being followed and facilities are properly cleaned after each use.

Dock

Require residents to sign a waiver/ disclaimer prior to use
Post guidelines/rules next to the dock and along the dock
Require residents to wear face masks
Limit the number of residents/guests allowed at a time to adhere to the social distancing guidelines and consider a maximum time limit to allow all residents an opportunity to enjoy the facilities.
Provide disinfectant wipes and hand sanitizer or require residents to bring their own and wipe down all equipment after use
Require proper social distancing of 6’ at all times

Your primary objective as managers and board members is to ensure the wellbeing of the residents of your Association. Our objective is dual-focused, the safety of the residents, and also the protection against liability of the Association. Please apply best practices and proper risk management. Speak with your attorney and get an action plan together prior to opening up your amenities to your residents. It will be in the best interest of you and the residents of your Association.

We hope you all stay safe and healthy.

May 11, 2020/by The Orlando Law Group

Opening Up Phase One: The Rules That You Need to Know

All posts, Business Law, Coronavirus, COVID-19

Today, we have officially entered Phase One of reopening, and as one would expect, there is much anticipation for things to “go back to normal.” We want to stress that this is going to be a very gradual move back into normalcy, and we want to ensure that you understand what this phase entails.

There are still severe measures being taken to help flatten the curve, so we want to encourage you to maintain these regulations. If you are a business, it is a good idea to print this blog off and go over it with your employees. It is only natural that there is still some degree of difficulty with a new normal, and to create a habit, one must consistently remind themselves of the ruleset.

One way we stay strong and focused on these regulations is reminding ourselves about the bravery of the first responders and medical staff that are working so hard to keep patients healthy and safe. It is a simple way to stay motivated as well as embolden the significance of the points below. As always, if you have questions or concerns, our lawyers remain at the ready to help.

Effective today, May 4, 2020, Governor DeSantis’ Executive Order 20-112, shall entail the following:

Restaurants and Food Establishments. Restaurants and food establishments may allow customers to eat and drink on the premises, as long as they adhere to social distancing guidelines and limit their occupancy to 25%. This 25% calculation does not include employees. Outdoor seating in a restaurant is permitted only if customers are 6 feet apart, and there are ten people or fewer in one area. Bar counters must remain closed.

Bars, pubs, and nightclubs. Bars, pubs, and nightclubs that derive 50% of their gross revenue from the sale of alcoholic beverages shall continue to suspend the sale of such beverages for on-premises consumption.

Congregation limitation. No more than ten people shall congregate in any public space that does not allow for social distancing.

Travel and Isolation. If you have traveled on a cruise, traveled to any international destination, or have been in any area with a significant presence of COVID-19, you must isolate yourself for 14 days upon return.

Gyms and Fitness Centers. Gyms and fitness centers shall remain closed.

Retail Stores. Retail stores may open as long as they operate at 25% capacity and abide by the safety guidelines established.

Museums and Libraries. Museums and libraries can open as long as they operate at 25% capacity, but all interactive functions or exhibits, including child play areas, must remain closed.

Medical Procedures. Elective medical procedures may resume. Ambulatory surgical centers, office surgery centers, dental offices, orthodontic offices, endodontic offices or other health care practitioner offices can perform procedures if

the facility can be converted to assist with the treatment of COVID-19 patients in a surge capacity situation;
the facility has adequate personal protective equipment;
the facility has not sought additional federal, state, or local government assistance regarding personal protective equipment supplies; and
the facility has not refused to provide support to or engage with assisted living facilities or long-term care residential providers.

Recommendations during this Phase One:

Act Reasonably. Courts will look to the reasonable person standard when evaluating the actions of business owners and their compliance with the administrative orders, so do your absolute best to adhere to the safety guidelines set out.
Administrative Orders. Owners should print out a copy of the most recent order and go over it with their employees.
Be Consistent. Business owners must be consistent with their actions and the procedures they implement from this moment forward.
Consider releases. There are releases you can create for both clients and customers (hair salons, doctors’ offices, gyms, and medical spas). This will not eliminate all liability, but it will show that you have made both employees and customers aware of any possible dangers.
Establish Policies. Every business should have a policy in place for not only their employees but for their clients and customers as well. (ex. when and how you allow your employees to work)
Medical Information. Medical information collected from your employees must remain private. HIPAA law must still be adhered to, even if an employer is only taking temperatures of its employees.
Stay Safe. Business owners must continue to adhere to the administrative orders so that you can remain open. (Keep masks on and remain 6 feet apart)
Insurance Agent. We recommend giving your insurance agent a call to discuss what you must do to remain covered under your policy.
Workers’ Compensation. Workers’ compensation claims are “no-fault”, so we recommend that you ask your insurance agency whether there is some type of coverage preclusion for your specific policy or whether you can get a rider (an insurance policy provision that adds benefits or amends the terms of your insurance policy).
Keep Records. Keep a record of all the safety measures you have implemented in your business and all that you require of your employees. This may come in handy if any issue should arise in the future.

It is important to remember that the safety of the public is essential at this time, so make sure you are adhering to the social distancing guidelines, as well as any current or future Administrative Orders executed. Should you have any questions or want to discuss a matter you are currently dealing with, we encourage you to give The Orlando Law Group, PL a call at 407-512-4394 today, to schedule a consultation.

We hope you all stay safe and healthy.

May 4, 2020/by The Orlando Law Group

Gig-Workers And COVID-19 Unemployment – What You Need To Know

All posts, Business Law, Coronavirus, COVID-19, Personal

COVID-19 Unemployment Assistance for Gig Workers and Freelancers

Ambiguous statutory language is consistently being clarified to help those affected by the coronavirus pandemic on both the Federal and local levels. So many individuals are asking themselves if they can collect unemployment, and recently it has come to light that app-based drivers, as well as gig workers, are eligible for unemployment benefits.

According to the federal government, if you are an independent contractor and you have experienced a “significant diminution of work as a direct result of COVID-19,” then you could potentially collect unemployment. These provisions fall under the Pandemic Unemployment Assistance program.

The Department of Labor has been informed that clarity will be necessary when it comes to broad and ambiguous language that could lead to states not offering benefits to contractors that the law was intended to protect.

COVID-19 Unemployment Insurance Benefits Confusion

However, there is a lot of confusion around who is eligible to collect. One common questions are: do you have to test positive to potentially drawn unemployment? Not necessarily.

The difficulty is due to language in the section states that a nonemployee ride-hailing driver may not be able to gain unemployment unless “He or she has been forced to suspend operations” due to the COVID-19 outbreak.

There have indeed been “Additional criteria to cover gig workers.” For so many individuals, clarity is going to become power in this situation. If you are a driver and your business has been affected by COVID-19, do you have a chance at qualifying for unemployment?

There are some companies providing benefits for those affected by COVID-19. If diagnosed with COVID-19, companies like Uber, Instacart, and Door Dash are offering two weeks of financial assistance. Under the criteria used by the ADP Research Institute, one in six workers count as gig workers in the United States.

That equates to more than 25 million Americans. That is a massive percentage of the workforce. And programs are being put into place to alleviate the hardships they are going to experience or have already gone through.

Florida and COVID-19 Unemployment Benefits for Gig-Workers and the Self-Employed

In terms of Florida, studies have suggested that gig workers and the self-employed make up a fifth of the state’s workforce. Drivers for Lyft and Uber have had some confusion, only because although they do not qualify for typical unemployment benefits given by the state, they do qualify for assistance that is being provided during the pandemic. Getting that assistance has been another story altogether.

As one would expect, online portals are having trouble shouldering the number of individuals filing for this assistance.

With confusing processes and ambiguous language, there has been a rise in panic for people reaching out for help. One of the essential actions you will take is that of utilizing and having resources that you trust who are dealing with these changes every single day. That is why we are here to help you.

One of the most significant hardships that individuals are facing is how much time it takes to go through the process to get the assistance that they need. One individual, who is using the name Ted and keeping his last name private to preserve potential job prospects in the future, charted his process.

Ted was attempting to apply for unemployment benefits during coronavirus COVID-19. He has been forced to stay home and could not work due to the quarantine.

Ted was hoping to collect a few weeks of unemployment at the reported rate of $600 per week.

He made over 900 calls in 6 days and was only able to get through when he entered his social security number on the phone. After that, he was told that he would get half the assistance, but another portion would have to be registered for later because the program was not instituted yet.

Receiving benefits in Florida for Gig-Workers and Freelancers

The truth is that time is not going to be on our side when it comes to the inundation these programs are facing. It is true that, for many families, they need assistance immediately, and the ambiguity does not help them understand if they qualify or not.

As always, we are staying close to every situation, and we want to know the questions that you have. Utilize your allied resources at this time and give us a call if you begin to run into complications or feel that legally you need advice. We are here to help, and we take great pride in the fact that one conversation with us can change your future.

There are no dumb questions during this time, and if you are struggling to understand what to do next, we are here to help you. Call our office right now at (407) 512-4394 and ask to speak with an employment lawyer.

Child Support Reduction and Suspension During COVID-19

April 29, 2020/by The Orlando Law Group

Breaching Contracts: How the FORCE MAJEURE CLAUSE can help you!

All posts, Business Law, Coronavirus, COVID-19

Right now, Coronavirus has forced businesses to reevaluate the contracts that legally bind them to making regular payments. They are looking at the fine print in order to try and see what options they have, and that’s where clauses that allow them to breach their contract have become instantaneously interpretable. COVID-19 has caused extensive economic strife, and we’re going to be seeing the residual effects ripple throughout our world for quite some time. We’re arming each other with the most powerful arsenal: knowledge.

From production to distribution, wholesale to retail, all around the world businesses are shutting down and ceasing work. Without an income source, these businesses may not be able to pay their bills. With COVID-19 seemingly becoming a bigger threat, there is not a guaranteed return date and no end in sight for their financial struggles. It’s time to use all that we can to ease the hardships that are impeding immediate relief. Many businesses are now turning to the fine print of their contract or leases to determine if they have a “force majeure clause,” and whether that clause would apply to their situation under COVID-19.

Force majeure translates from French as “superior force.” A force majeure clause is a provision in a contract that excuses a party’s performance of contractual obligations when unforeseen circumstances arise that are not at the control of either side of the contract. These circumstances, often termed “acts of god” create situations that make performance under the contract commercially impracticable, illegal, or impossible. These clauses are very common in many types of contracts, but often these clauses are removed or modified to a version that would not apply to the COVID-19 virus. Force majeure clauses are typically applied to contracts for goods and services rather than a contract to pay money. These clauses are often overlooked in contracts because it relates to “unforeseen circumstances,” which, believe it or not, are regularly unnoticed as a necessary clause in the lease or contract. As many people are now finding out, these clauses play a vital role in governing a contract during the unforeseeable. You never think that the unthinkable will happen until it does. That’s where great lawyers take a closer look to decipher the intent behind the language within the contract. The time is now to seek clarification, and the fine print is more relevant than it ever had been.

Depending on the wording of the clause in the contract, a force majeure clause can have a variety of outcomes including excusing a party from performing under a contract, suspension of performance, giving one or both of the parties an option to terminate the contract, or a substitution of performance under a contract. Courts will often construe force majeure clauses narrowly based on their writing, and most contracts do not adequately anticipate pandemics. If the clause in your writing is narrowly written, the courts are likely to enforce it narrowly; however, if your clause is too general, it may not have the sufficient wording to encompass your specific force majeure need. The perfect force majeure clause is somewhere in the middle, between narrow and generally written. We are in an unprecedented circumstance with COVID-19, so having someone utilize their experience to look at how your clause might be interpreted would be a good idea.

Force majeure clauses are not limited to commercial contracts. These clauses can be found attached to contracts in virtually every industry. If you are a tenant that is out of work due to COVID-19, are you required to pay rent? If you are a buyer under a purchase and sale agreement for a house but can no longer qualify for the mortgage, are you required to perform under the contract? Questions such as these could be easily answered if you resort to a properly written force majeure clause. If your lease or contract is missing the clause entirely or if the clause is written in a way that you are unsure whether it fits the COVID-19 crisis, it will take a deeper look into the fine print and meaning of the clause in your particular contract.

When this virus is over, we are likely going to see a flood of evictions, foreclosures, and breach of contract actions using force majeure as a defense. COVID-19 related damages will likely be upheld in many of these actions with a properly written force majeure clause; however, the majority of contracts will be rejected due to their inadequate wording. It would be wise to have your contract reviewed by an attorney as early as possible to determine exactly how to proceed under the language within the contract. It’s all about how you interpret the wording, and that’s what lawyers do best. We specialize in helping you get ahead of the situation, no matter how complicated. Many times, it’s all about keeping an open mind and taking advantage of our experience. If you are questioning whether your force majeure clause is enforceable, make sure to give The Orlando Law Group a call today. We’re staying apprised to the needs of the people and making sure that we help wherever we can.

April 23, 2020/by The Orlando Law Group

Don’t Spend That SBA $10,000 Disaster Loan Just Yet

All posts, Business Law, Coronavirus, COVID-19, Employment Law

What is the SBA $10,000 DIsaster Loan?

The U.S. Small Business Administration (SBA) has responded to the Coronavirus (COVID-19) pandemic by offering small business owners in all U.S. states, Washington D.C., and U.S. territories and Economic Injury Disaster Loans.

An important aspect of the loan has received an enormous amount of attention. That component is an advance on the loan of “up to $10,000.” The advance is supposed to be available following a successful application for the SBA loan.

The advance is intended to provide financial relief to businesses. Especially to those that are experiencing lost revenue during the Coronavirus pandemic.

No need to be a master of the English language to note the words “up to” in that statement. That escape hatch phrase goes a long way in allowing the SBA to do some pretty crafty things with the loan and the advance. As you’ll see later in this article, the SBA’s recent clarifications of the wording of the advance heavily leverage the phrase “up to.”

The reason this part of the Disaster Loan is important is that the SBA has suggested the advance will not have to be paid back.

Where’s my $10,000 Disaster Loan advance?

If you are asking this quesion, you are not alone. As far as we can tell, no one has received their advance or Disaster Loan yet. Loan applicants across the country are scratching their heads because the SBA initially suggested that the $10,000 grant wuld be available three days after the application.

You read that correctly, three days. A lofty goal by anyone’s standards. The SBA quickly, and with much public criticism, realized their gaff and removed the “three days” language from their website and application.

The website now reads: “The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid.”

While no one really knows where your Disaster Loan advance is, we do know this, it’s probably not in your bank account. Yet.

It’s worthwhile to note that the $10,000 grant might be more of a wish list than a dream come true.

The SBA clarifies what “up to” means.

Earlier I noted that the SBA included the phrase “up to” in the description of the $10,000 advance. This week, in a statement from the SBA’s Massachusetts District Office, it was clarified that the SBA plans to limit the scope of the economic injury disaster loans. Even though these loans, advances, and grants are meant to provide businesses with immediate, emergency cash, that cash might be a lot less than many are expecting.

The Massachusetts Office of the SBA clarified that a business will receive $1000 for each employee, up to $10,000. The language of the statement suggested that this clarification affects businesses nation-wide.

So, if you are a business with, one employee, you can expect (at this time) a $1000 check. If your business has 4 employees, your check will be for $4000.

Remember, this is capped at $10,000, so if you have 15 employees, you will still only get a $10,000 advance or grant.

The relationship to other loan programs.

Adding complexity into the mix is how the SBA’s Disaster Loan relates to other programs, like the paycheck protection program (PPP).

Things seem to get more clear day by day and the current landscape suggests that the SBA Disaster Loan can be rolled into a PPP loan. The grant will be subtracted from the amount that gets forgiven.

What should you do right now?

First of all, if you have not applied for the SBA Disaster Loan with up to $10,000 in grant/advance funds, you should do so. Click through to our COVID-19 portal of legal information to find the link.

Next, it’s time to be patient. We are in an ever-changing set of conditions and things change hour-by-hour. Once you’ve applied, all you can do is wait and see.

What will be interesting to many is how much of an advance will be given out. Will it really be only $1000 per employee? Patience and time will tell us.

April 10, 2020/by The Orlando Law Group

Bankruptcy Might Not Be as Difficult as You Think

All posts, Bankruptcy, Business Law

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

What is Trademarking?

A Tale of Two Businesses

Trademark Infringement Factors

What about Dilution?

Where is the Line?

How to Register Your Trademark

Our Advice

The Time Frame

An Uptick in Users

Predictive Precedence

Buyers Coming to the Rescue

The Potential Victor

Personal funds used for business and real estate expenses are nondeductible

Overpaying (Tipping) the IRS will make me “Audit Proof”

You are allowed more deductions by being incorporated

Utilizing the Home Office Deduction Incorrectly

Claiming Deductions That Are Out of the Scope of Your Business

Filing an extension gives you an extension to pay any taxes owed

You Cannot Deduct General Expenses

Considering How Shopping Center Commercial Leases are Unique

What Exactly Is Co-tenancy and How Could It Apply?

What Options do Landlords Have?

A Wave of Litigation on The Horizon

Changes in the required spend on payroll

Increase in the timeframe to spend the loan proceeds

Important notes on the PPP loan compensation

Extension on repayment

Breathing room for business working to operate at 2019 levels

In the hands of the SBA

Talk to a bankruptcy lawyer as soon as possible

Clearly evaluate your situation and don’t rush to file bankruptcy

If you have a large amount of cash, it’s time to protect it from creditors

Resist the temptation to sell things to pay your debt

Leave your retirement plan alone

Tirelessly explore your forbearance options

Do this right now

Phase One: A Guide to Re-opening Associations Step 1:

Phase One: A Guide to Re-opening Associations Step 2:

Recommendations during this Phase One:

COVID-19 Unemployment Assistance for Gig Workers and Freelancers

COVID-19 Unemployment Insurance Benefits Confusion

Florida and COVID-19 Unemployment Benefits for Gig-Workers and the Self-Employed

Receiving benefits in Florida for Gig-Workers and Freelancers

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What is the SBA $10,000 DIsaster Loan?

Where’s my $10,000 Disaster Loan advance?

The SBA clarifies what “up to” means.

The relationship to other loan programs.

What should you do right now?

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?

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

How to make your board meeting more productive

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?

Distribute Financial Information Prior to the Meeting

A Call Before the Meeting

They Talk the Talk, Are They Walking the Walk?

Meet in Person When Possible

No Cell Phones Please

Be Realistic With the Time Needed for a Meeting

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

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