Business Law Archives - Page 2 of 4 - The Orlando Law Group

What the lease? A guide to renting space for your business.

All posts, Blog, Business Law, Real Estate

Every business owner remembers the pride they felt when the ribbon was cut on their new office or new location. All their friends and family, along with the local mayor and the chamber of commerce, came by to congratulate the owner on their accomplishment.

Getting to that point was not always easy and getting that space was often complicated, filled with terms that are very well known to realtors and institutional investors but are not common to most people.

After all, the closest thing most people have had with leasing property is the apartment they rented or the short-term rental agreement they signed when moving.

Most residential leases are straightforward. You agree to a rent payment and to maintain the property inside the home, and pay for renters insurance and utilities. The rest is up to the landlord.

That is not the case with commercial real estate, where you can sign a “triple net” lease, an “absolute” lease, a “step-up” lease, a “gross” lease or a number of other types of leases.

It is important you work with an attorney at The Orlando Law Group to ensure you fully understand the ramifications of the lease you want to sign. Any type of lease has risk and reward and the attorneys at The Orlando Law Group can help you make the best decision for your business.

What are the different types of leases?

There are a multitude of types of leases, but it is important to understand the difference between the common types of commercial leases: single net, double net, triple net and absolute net leases.

In each of these types of leases, the difference is who pays what during the lease to operate and maintain the property. The most common of these leases is the triple net lease, where you will pay less on your lease payment, but more in the operations of your business.

In the triple net lease, your business will be responsible for utilities, taxes, janitorial, insurance, maintenance and much more. The payments will be bill separately and based on the percentage of space you lease in the building.

Sure, it sounds like a lot, but remember, the property owner took the risk in developing the property from leasing. As a user of the building, the thought is you will have responsibility in maintaining the property you are using.

If that sounds like too much to be responsible for, you can always look at a double net lease or a single net lease. These are not as common as they shift some of the responsibility to the property owner, but the owner may be amenable to those types of leases.

In a double net lease, you will pay for just about all the same items as a triple net lease, but the overall property maintenance will be the responsibility of the property owner. Things like landscaping and small facility repairs will not be part of your lease, but you will still need to cover taxes, utilities and other aspects.

In a single net lease, you are pretty much responsible for only your space. You pay rent and taxes and the landlord pays virtually everything else.

The reality of each of these types of leases is the more you pay for, the lower your lease payment. The fewer items you pay for, the higher your lease payment.

What are other varieties of leases?

Of course, as with any legal arrangement, there are dozens of different variations of the three types of leases.

Start out with the “absolute triple net lease.” This variation includes everything that a triple net lease includes, plus a contribution to major repairs on the building. For instance, if your shopping center needs a new roof or your office building needs a new HVAC, your business will be responsible for helping pay for those repairs based on the percentage of square feet you lease.

What if the next hurricane destroys the building? In most leases, the property owner would be responsible. But in a “bond” lease, you are on the hook to help rebuild the property. And if the building is condemned, you still have to make lease payments.

You could also try to negotiate a “gross” lease. It is like the triple net lease as to what it covers, but in this arrangement, everything is included in the singular lease payment, as opposed to being billed separately for taxes, insurance, property maintenance and more.

There are also “percentage” leases, which provide the property owner with a cut of the business profits. These are particularly common with restaurants, which take a bit of time to build a customer base. There are step-up leases, which automatically increase the lease payments over time.

If you want a custom building, you can also look at a ground lease, where you are responsible for building your location and everything that needs to be part of the facility. Of course, you need to make sure it is very clear what happens to your investment when or if the ground lease ends.

What type of lease is best?

There really is no “best” type of lease. All the established types of leases have their pros and cons and are dependent on your business. The goal of the property owner is to keep their investment filled with tenants and produce revenue. They are usually willing to work to find a lease arrangement that works for everyone.

That is why it is critical to work with an attorney on your commercial lease. Your attorney will understand what your long-term goals are for your business and will be able to negotiate to get you the best possible lease for your specific business.

The attorneys at The Orlando Law Group represent clients in commercial real estate and more in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

September 24, 2023/by Alan Byrd

New Divorce Laws in Florida

All posts, Business Law, Employment Law

At The Orlando Law Group, we certainly understand the stress, confusion and emotions that come with a divorce, particularly one that has alimony payments and child custody arrangements.

Unfortunately, many of the laws guiding Florida courts for decades have been upended this month. For more than a decade, there has been an effort to substantially overhaul these laws. Both Governors Ron DeSantis and Rick Scott have vetoed similar legislation in the past.

This year, however, the laws passed and this month, a slew of new laws took effect in Florida dealing with alimony and child custody.

While not retroactive, any new petitions for divorce will have these new laws apply.

If you are already divorced, these new laws could affect you too as there are new standards to petition the courts for a modification of your divorce agreement.

The big one that could see substantial changes in your agreement is the end of permanent alimony for any new divorces. For those receiving or paying permanent alimony, that could change in the future with new restrictions on retirement, outside support and other aspects.

If you are filing for divorce soon, alimony will be based on the length of your marriage and other factors, but it will now be required to end at some point.

As to custody arrangements, the court now takes the stance that co-parenting – a 50/50 split – is best for the child unless either side proves that not to be the case.

Keep in mind as with any new law, there will be court challenges and other actions to fix any issues with the law, so this could change.

But if you have a divorce agreement from a Florida court, it is imperative you reach out to The Orlando Law Group soon to review and see what your options are and how this new law might affect you.

The Orlando Law Group can help you with any family law issue that might arise, including ones dealing with alimony and child custody. Our full-service firm helps businesses and individuals in Orlando, Winter Garden, Altamonte Springs, St. Cloud, Kissimmee, Sanford and throughout Central Florida.

What is alimony?

In any divorce proceeding, the courts look at how to ensure individuals are not immediately put into financial stress through a divorce. This can come in a variety of forms, from a lump sum payment, a “bridge-the-gap,” rehabilitative and durational.

In each of those cases, there is a wide range of factors that determine the amount and the length of the alimony payments. Usually, without an agreement, the courts would set the length and cost of alimony, including sometimes making it permanent – only ending with death or remarriage.

No more permanent alimony

As of July 1, the new law completely eliminates all permanent alimony, now requiring an end date to the payments.

According to the previous statutes, “Permanent alimony may be awarded to provide for the needs and necessities of life as they were established during the marriage of the parties for a party who lacks the financial ability to meet his or her needs and necessities of life following a dissolution of marriage.”

It was meant for couples separating from long marriages in most cases and it was viewed by statute as the last choice.

The alimony ended when the payee remarried or died, or if there was evidence of new outside financial support – generally living with someone – with a modification filing.

All of that is gone now. In Florida, there are now limits as to how long alimony can last. If you were married for three to 10 years, alimony can not exceed 50 percent of the length of the marriage; for 10-20 years, 60 percent of the length of the marriage; and over 20 years, 75 percent of the length of a marriage.

In addition, there is now a cap on the amount of alimony in durational alimony. It cannot “exceed 35 percent of the difference between the parties’ net incomes, whichever amount is less.”

Wait, there’s more…

One of the things that may have huge implications was the change in the definition of the length of a marriage. That can have large ramifications on your settlement.

In the past, a short-term marriage was defined as up to seven years. It is now 10 years. A moderate-term marriage was from seven to 17 years. It is now 11-20 years. And a long-term marriage is now over 20 years!

This could result in a significant reduction in your anticipated alimony payments.

If you already have permanent alimony, it is also easier to get a modification based on the circumstances of the payee. Before July 1, you could ask for a modification only if your ex-spouse was living with another person. (It automatically ended with remarriage). Now, alimony could end based on another person – other than family or a spouse – supporting your ex for a year or more.

Finally, Florida statute now clearly states how an alimony agreement can be altered in the case of the payor retiring. While this has been somewhat of a precedent based on earlier court cases with modifications, the definition of retirement is clearly stated in the statute and if those definitions are met, alimony ends or is reduced.

Child custody changed too!

A separate piece of legislation may influence divorce agreements with children.

In the past, each case of custody was looked at individually, meaning there was no basis for who had prime custody at the beginning of the case.

Now, the court starts all cases that involved children with the presumption the best interest of the child is to have 50/50 shared custody of minor children. If that is not the case, you must prove “preponderance of the evidence” that a different parenting situation is best for the child.

It is still to be determined how this will be utilized and change how child custody is currently determined.

That is why we believe it is essential to reach out to The Orlando Law Group if you have an existing divorce settlement or are thinking about divorce to ensure you are protected under these new statutes.

The attorneys at The Orlando Law Group represent clients in family law issues and more in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

July 5, 2023/by Alan Byrd

Independent Contractor Rules Change Again

All posts, Business Law, Employment Law

As business owners at The Orlando Law Group, we certainly use independent contractors as do many businesses throughout Florida. After all, independent contractors can often provide significant experience in a given field for a fraction of the cost of an employee.

Plus, many of the issues and costs surrounding employees – benefits, overtime, scheduling, time-off and more – are eliminated by working with independent contractors when possible.

Over the past few years, the “gig economy” has had courts, the IRS and the National Labor Relations Board looking closer at how workers should be categorized. And during the Trump administration in 2019, there was an expansion on who could be a contractor.

This June, however, the National Labor Relations Board issued a new ruling to basically reverse that decision. The issue comes down to entrepreneurial opportunity and if the contractor is working for multiple clients.

At The Orlando Law Group, we anticipate these types of criteria will fluctuate for a while as regulators work out how the gig economy will work.

The Orlando Law Group can help your business with any legal issue that might arise, including ones dealing with independent contractors. Our full-service firm helps businesses and individuals in Orlando, Winter Garden, Altamonte Springs, St. Cloud, Kissimmee, Sanford and throughout Central Florida.

What is an Independent Contractor?

Over the years, the independent contractor has been an important part of many business plans. They have been called consultants, 1099s, contractors and more.

But businesses that use them cannot simply substitute an employee for an independent contractor. There are specific rules, but for the most part, it comes down to control. Unlike an employee, a business does not provide any tools to the independent contractor – and cannot control how the contracted work is performed.

For instance, if you hire independent contractors as salespeople, you cannot provide them with sales leads. You cannot say they have to work every Friday or set their hours in any shape or form. You cannot require them to go to the office. You cannot provide them with a laptop or a computer. You shouldn’t even give them a business card with the company’s name on it.

Benefits are off the table. You are not responsible for overtime and certainly not responsible for taxes.

And you most certainly cannot prevent them from contracting to sell for another company at the same time, although you could make industry exclusivity a part of the contract.

The same applies if you are using a delivery driver as an independent contractor, or hiring a beautician, or a pilot, or myriad of other jobs.

Here’s how the IRS determines independent contractors, using three “Common Law Rules.”

Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
Financial: Are the business aspects of the worker’s job controlled by the payer?
Type of Relationship: Are there written contracts or employee type benefits? Will the relationship continue and is the work performed a key aspect of the business?

Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.

These Common Law Rules have governed the independent contractor relationship for quite a while.

Entrepreneurial opportunity

So, what changed?

While the Common Law Rules have been part of the discussion on independent contractors for decades, what changed repeatedly in the last decade is how “entrepreneurial opportunity” is defined.

At the center of that term is how the independent contractor can grow their own business with other clients and other contracts.

In 2014, the NLRB said entrepreneurial opportunity was based on real entrepreneurial opportunity –the independent contractor acquired multiple clients. This ruling limited the number of independent contractors and classified many individuals as employees.

In 2019, that determination was expanded. It wasn’t specific to whether the independent contractor had acquired other clients, it became hypothetical. Could the independent contractor grow their business with other clients, even if they hadn’t? And that became the overriding element of classification.

Of course, applying potential instead of actual actions expanded who could be an independent contractor and the newest ruling from the NLRB returns to the 2014 meaning.

What does this mean for businesses?

The classification of workers as employees or independent contractors is critically important. If you misclassify employees as independent contractors, you could be liable for back taxes and pay, and depending on the extent and negligence on your part, there could be major fines.

These fines can be significant. For instance, Nike is facing a $500 million fine for misclassifying employees. A small construction staffing company with 200 employees in Virginia has a $270,000 fine to pay for misclassifying employees.

At this point, it is important to be as conservative as possible with independent contractors.

We also believe to protect yourself; you should have an attorney at The Orlando Law Group review your independent contractor agreements. We understand your needs as a business owner and want to make sure your business thrives.

The attorneys at The Orlando Law Group represent clients in business law, labor issues and more in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

June 26, 2023/by Alan Byrd

LLCs: Is It Better to Tax as a Partnership or S-Corporation?

All posts, Blog, Business Law

All businesses, even some of the biggest corporations you can think of, started as a small business. They are a major part of the American dream and they allow people to use their creativity to support their local community or build a life for themselves. This concept draws in people from all over the world who do not have the same opportunities as those born in the United States.

There are millions of small businesses in the United States, and they are the bones of the American economy. They create tens of thousands of jobs each year, make up almost all businesses in the United States, and are accountable for a large portion of the country’s economic activity.

That being said, starting a small business is not always easy. It takes a lot of time, money, and personal investment to start a small business and make it successful. It also comes with a lot of decisions on how the company should be structured and taxed.

One of the most common structures for small businesses are Limited Liability Companies, commonly referred to as LLCs.

What is an LLC?

An LLC protects owners from being personally responsible for a company’s debts and liabilities and was created by law.

When there is an LLC with a single owner, it is treated like a sole proprietorship, and when there are multiple owners, they can be taxed as either partnerships or corporations. It is important to talk to your accountant about what is best.

Some of the benefits of an LLC taxed as a partnership include:

Flexibility: firms that have complex structures of ownership and investment strategies that vary, find that the flexibility in profit distribution, governance arrangements, and structuring ownership interests is very important.
Pass-through Taxation: Pass-through taxation is when the profits and losses of the firm flow through to the partners or individual member’s personal tax returns. This avoids something called “double taxation,” being taxed twice on the same income, and allows the tax treatment to be aligned with situations of the individual investors.
Limited Liability Protection: This structure provides limited liability protection, which means that the personal assets of the members or partners and the liabilities of the firm are separate. This is extremely important for private equity firms that engage in investments that are high-risk.
Operational Flexibility: LLCs also offer operational flexibility. This allows private equity firms to make their own decisions and manage their investments efficiently, to their liking. It allows for the adoption of operating agreements that can be made to meet any specific requirements or needs the firm has.
Alignment with Investor Preferences: Many investors, including high-net-worth individuals and entities that make investments for other people, actually prefer investing in private equity funds structured as LLCs taxed as partnerships. The pass-through taxation allows the tax treatment to align with the investors’ individual needs and desires, which makes it a lot easier to incorporate the investment into the rest of their tax planning.
Section 754 Basis Adjustment: By taxing an LLC as a partnership, private equity firms might be able to take advantage of a Section 754 election. This gives the firms the ability to adjust the tax basis of the partnership’s assets when ownership interest goes under transformation, which can be a valuable tool. When private equity firms engage in buying and selling investments, to allocate the stepped-up basis to the acquiring partner and potentially increase amortization deductions or future depreciation. This can be helpful in the private equity industry where there are varying tax bases and holding periods for investments. It provides additional flexibility when managing investments, especially when frequent transfers of partnership interests are anticipated or if there is a diverse portfolio with assets held at varying tax bases. This can possibly result in tax savings and enhanced tax planning opportunities. The benefits are not uniform, and they depend on the unique circumstances of the firm and its investors. It is especially important for private equity firms to examine this carefully and consult with legal and tax professionals to determine what the best option for them is.

Another option for taxing LLCs is by taxing them as an S corporation. This is a selection you have to actively make that has a similar pass-through taxing structure. Therefore, taxing an LLC as an S corporation has some of the same benefits as taxing it as a partnership, but there are differences also.

Restrictions on Ownership: There are specific eligibility requirements for shareholders. It is limited to one hundred or fewer individuals, select trusts, and estates as shareholders. This can, effectively, limit the flexibility when it comes to raising capital or having certain types of investors.
Limited Flexibility in Allocations: S corporations are subject to more strict allocation rules than LLCs taxed as partnerships. They have to distribute their profits and losses to their shareholders according to percentage of ownership. This can become a problem if an owner wishes to allocate the profits or losses in a disproportionate way, because of different shareholder agreements.
Restrictions on Entity Structure: S corporations also have restrictions on what kinds of entities can own their shares. For example, C corporations, partnerships, and most kinds of LLCs cannot be shareholders. This limits the options for structuring more complex business relationships or even pursuing certain investment strategies.
Limited Fringe Benefits: There may be restrictions on tax treatment of fringe benefits if the S corporation owners own more than 2% of the company’s shares. The owners may also be subjected to additional tax consequences for benefits such as health insurance premiums, medical expense reimbursements, etc.
Potential Self-Employment Tax: While shareholders of an S corporation might be able to save on self-employment taxes by paying themselves a lower salary and taking the extra profits as distributions, the IRS may scrutinize the salary amount. If it is deemed unreasonably low, they could reclassify a portion of the distributions as wages, making them subject to employment taxes, which can result in additional tax liabilities and potential penalties.
Termination of S Corporation Status: The requirements of an S corporation must constantly be adhered to, in order to maintain their status. If they are not, for instance by exceeding the limit on the number or having an improper type of shareholder. This can, unfortunately, lead to unintended tax consequences and higher taxes if the corporation ends up being treated as a C corporation.

If you are looking for an attorney who understands business, look no further than The Orlando Law Group. Our firm is led by a serial entrepreneur, Jennifer Englert, who has not only grown the firm from its inception but is also a founder or owner in more than a dozen companies in and around Orlando, Altamonte Springs, Winter Garden and St. Cloud. That experience is critical in giving you legal advice. The Orlando Law Group is not just looking at the law pertaining to your unique circumstance, but it is also looking at your business and what makes your business special.

If you would like to schedule a consultation for any business issue, please reach out to our office at 407-512-4394, fill out our online contact form or save this information in case you ever find yourself or a loved one needing to use it for any of our services, not just business law.

June 6, 2023/by The Orlando Law Group

Terminating a Foreign Worker

All posts, Business Law, Immigration

We’ve all been there.

You hire what you think will be a great employee, and it turns out you missed the mark during the interview. Or your great employee is found to be harassing other employees. Or you just need to cut certain staff because of a downturn in the economy.

In nearly any circumstance, ending the employment of someone who works for you is not an easy task.

But what if that employee came to you through an immigration program, like an H-1 visa or an E visa? If that’s the case, there are very specific steps you must take to follow state and federal laws for both immigration and labor laws.

The Orlando Law Group can help your business on both accounts. As a full-service firm with attorneys helping businesses and individuals, we can certainly help employers looking to terminate foreign workers in Orlando, Winter Garden, Altamonte Springs, St. Cloud, Kissimmee, Sanford and throughout Central Florida.

Notification of Termination

In nearly all cases of employment immigration, if you are terminating the employment of someone who is working with you under an employment visa, you will need to ensure multiple entities are notified.

This could include the employee, the United States Customs and Immigration Services, and possibly the consulate of the employee’s country of origin. Like so many legal concepts in immigration law, the actual process is dependent on the visa that is being used.

There are two possible exceptions to the above. If the employee is under a TN visa for employees from Mexico and Canada, and if a visa is designated for employees who transferred from one location within the company to a location in the United States.

Extra Expenses

When employing foreign workers, there may be expenses you have incurred when bringing those workers to your company.

Likewise, if you terminate a foreign employee, you may need to reimburse the employee to aid them in returning to their home country for “At least equal to the costs charged by the most economical and reasonable common carrier for the distances involved,” according to the Department of Labor.

This stipulation does not apply equally to all employment visas, and the case law on this issue evolves regularly. There is no hard definition of what is the “most economical and reasonable” cost that an employer must pay.

The attorneys at The Orlando Law Group are here to help you navigate this critical step.

Grace Period

When you terminate an employee, that employee is not necessarily required to go straight to the airport and back to their home country. In most cases, workers are provided a grace period of up to 60 days to put their affairs in order and return to their home country.

To be clear, however, this is not an excuse for workers to overstay their visa. If the visa expires 30 days after termination, the employee can only stay for 30 days.

There may be other options available for the employee in this situation. While this blog is focused on employers, The Orlando Law Group can help individuals who were terminated while working in the United States through an immigration program as well. There also may be some opportunities for an individual to stay in the United States after termination.

Your attorney at The Orlando Law Group can help to see if there are options available in your unique circumstance.

I-140 Withdrawal

One of the central parts of terminating an employee is the I-140 petition, which is key to the immigration process for certain employees.

Remember, this does not apply to all foreign employees but can have significant effects on some foreign employees. The attorneys at The Orlando Law Group can help you determine what may happen to an employee’s I-140 petition.

For employers, keep in mind the I-140 petition is extremely important to your employees, and a commitment to not withdraw the petition within the first 180 days of employment can be a very useful employee benefit to attract higher-level employees.

Attorneys for Both Employee and Employer

The Orlando Law Group is a full-service law firm that helps businesses, organizations, and individuals with a wide range of legal services. As such, there may be cases where The Orlando Law Group can represent both the employer and the employee in an immigration case when their interests are totally aligned.

Of course, when that happens, The Orlando Law Group will be open and transparent and will only provide legal assistance to both parties with the express permission of both parties as information must be shared between everyone.

Conclusion

While terminating an employee can be complicated, The Orlando Law Group can help guide you to operate within the complex immigration system and its associated labor laws.

The complexity of terminating foreign employees should not prevent any business from hiring foreign employees. The benefits of foreign labor can be substantial, especially during times like these when good employees are hard to come by.

If you are looking to terminate a foreign employee in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, or Kissimmee, we’re here to help you with a full team of attorneys who care about you and your circumstance and treat you with compassion while seeking the best possible outcome for you and your loved ones.

The attorneys at The Orlando Law Group represent businesses in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.

February 8, 2023/by The Orlando Law Group

Can I use Steamboat Willie in my Marketing?

All posts, Blog, Business Law

Right before the New Year, the New York Times wrote an extensive article about Mickey Mouse and how the copyright for the historic Steamboat Willie will most likely expire at the end of 2023.

When that happens, the Steamboat Willie version of Mickey Mouse will become public domain, meaning anyone can use that version of the cartoon character and the film without paying any licensing fees.

Of course, nothing is settled in stone. The last time this issue came up, the Walt Disney Company worked with Congress to extend copyright protections by 20 years.

Most businesses cannot just convince Congress to change the rules on copyrights. So, this is a great case to watch as this issue unfolds. It is a good way to understand how people can and cannot use your logo, your graphics, your mascot, your company name.

And it is a great reminder to check with The Orlando Law Group for a review of all your intellectual property has the right protections to keep your brand pure.

The Orlando Law Group can help entrepreneurs and business owners in in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Sanford, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida with all their intellectual property issues, along with any other general business issues.

Let us give a quick overview of intellectual property protections.

First, it is critical to understand the differences between the different types of intellectual property protections. They are often confused with each other, even though all of them can be critical for your long-term success.

For a more detailed look at the difference between trademark and copyright, please review this article we shared a few years ago.

A copyright protects first use of art

Maybe you wrote a jingle for your business or commissioned a painting of your restaurant. Maybe you created a cartoon character mascot. Those are all covered by copyright laws. They are original art and cannot be used by a third-party for profit.

When it is produced, there is a copyright applied, but you must register the copyright with the federal government for The Orlando Law Group to fight to receive any protection from the courts.

A patent protects an invention

If your company has developed the next big thing, you will need to file for a patent. This protects your product, your chemical reaction, your advancement on the widget and much more. To receive a patent, you will need to show that your invention is “new, unique and usable.”

A trademark protects your brand

Here is where you protect your name and your logo, your company colors and more. The goal with this type of protection is to avoid confusion by consumers and eliminate companies basically calling themselves the same name.

One of the difficulties with trademarks is there are two types of trademarks: word marks and design marks. The word mark protects your name. The design mark protects your logo. Both can be essential.

What do I need to do to protect my brand?

There are a couple of things you can do to protect your brand, especially when you are first starting your business. One of the things we do for any new business is do a search for trademarks, especially when naming restaurants.

The United States Patent and Trademark Office makes a basic search relatively simple through the TESS database. Performing an individual search can give you basic information, but it is still critical to have an attorney review the results. After all, there are 35-word marks for “Mickey Mouse.” Not all will apply to you and there may be an opportunity for you to use your dream name, even if it appears in TESS.

Of course, if your name is already trademarked in your industry, do not use it. Chances are, you will have to rename your business down the road.

Once you have applied, it is important to aggressively defend your protection. Often times, a simple demand letter can stop the possible infringement. Sometimes you will need to file a lawsuit for protection.

The key here is that you are showing others – especially future courts – this is your brand and you will protect it. The longer you allow others to use your brand, the easier it is for that person to claim it is in the public interest.

You do not want that to happen!

That is why you see so many companies being very active in protecting their trademarks. Just look up “trademark lawsuit” by just about any company and you will find multiple news reports of lawsuits.

Of course, this also means that if you want to get close to an established trademark, you are going to be prepared for a fight. Here is an example of where Apple sued just about anyone who tried to file a trademark using an apple. In fact, they filed objections to 215 trademark filings that were close to the logo of the iPhone.

They are counting on people not fighting back.

But that is what The Orlando Law Group is here for. We will fight to protect your company’s intellectual property, from filing for protection and to protect your brand.

And if you want to use Steamboat Willie in your 2024 marketing campaign within the legal format, we will fight for your right to do just that!

If you are looking to protect your intellectual property in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Sanford, Lake Nona, St. Cloud, or Kissimmee, we are here to help you with a full team of attorneys who care about you and your business and will work for the best possible outcome.

If you would like to schedule a consultation for a business issue like the ones described earlier, this information is in case you ever find yourself or a loved one needing to use it.

January 15, 2023/by The Orlando Law Group

Miya’s Law, Decreased Workers’ Comp Rates and Minimum Wage Increase – Florida Legal Changes for Business Owners to Look Out For in 2023

All posts, Blog, Business Law, Legal Commentary, News

Happy new year to all of our wonderful clients, team members and more! The coming of a new year brings with it excitement, new beginnings, and perhaps most importantly, many changes. With the dawning of the year 2023, there are many key changes to Florida state law which took effect on January 1.

Several of these changes are likely to affect business owners in a variety of ways.

As a business owner, it is important for you to have knowledge about these changes and understand how these changes may affect you and your business in the new year. Read on to learn more about what specific changes will be taking effect, and how these changes may affect your business.

Disaster Assistance:

In response to the devastating 2021 collapse of the Champlain Towers South building in Surfside, Florida, state lawmakers authorized the refund of ad valorem taxes, more commonly known as property tax rebates, when residential properties are rendered uninhabitable for a minimum of 30 days by disasters.

During the December special session, state lawmakers also passed SB 4-A to make similar property tax rebates available to property owners who sustained damage in Hurricane Ian and Hurricane Nicole this past Fall.

Read the full text of SB 4-A here: https://www.flsenate.gov/Session/Bill/2022A/4A.

How does this change affect my business?

If your business suffered damage during Hurricane Ian or Hurricane Nicole this past Fall, you may be able to receive a tax refund. Property owners will be able to apply to county property appraisers between January 1 and April 1, 2023.

Property Insurance:

During the December special session, Florida lawmakers approved the end of the assignment of benefits for property insurance, which has long been considered controversial. The practice of the assignment of benefits has homeowners signing over claims to contractors, who then pursue payments from insurers.

Essentially, part of a policyholder’s insurance benefits is transferred to a third-party. Insurers have long argued that this practice leads to unnecessary repairs being performed along with increased repair costs, as well as increased litigation costs, which, all together, then lead to higher insurance premiums.

Read the full text of SB 2-A here: https://www.flsenate.gov/Session/Bill/2022A/2A

How does this change affect my business?

Business owners will no longer be able to utilize the practice of the assignment of benefits, which could lead to lower insurance premiums. This change could particularly impact those in the business of commercial real estate or landlords. The prohibition on assignment of benefits (SB 2-A) will apply to policies issued on or after January 1, 2023.

Workers’ Compensation Rates:

An average 8.4 percent decrease in workers’ compensation insurance rates is taking effect this January, making this the sixth consecutive year that average workers’ compensation rates have decreased.

How does this change affect my business?

This change is a positive one for business owners, as it means lower insurance costs for employers. The decrease applies to both new and renewal workers’ compensation insurance policies effective in Florida as of January 1, 2023.

Miya’s Law:

Earlier this past year, Florida lawmakers passed a law (SB 898) that requires apartment landlords to conduct thorough background checks on all employees. Employees must also maintain a system for handling and logging the issuing of keys.

The bill is referred to “Miya’s Law” in honor of 19-year-old Miya Marcano, a student who went missing from her Orlando apartment in September of 2021 and was found dead a week later. The killer worked as a maintenance worker at Marcano’s apartment complex.

Read the full text of SB 898 here: https://www.flsenate.gov/Session/Bill/2022/898

How does this change affect my business?

This change will affect commercial real estate business owners and landlords in general. Landlords will need to conduct thorough background checks on all employees and ensure there is a system in place for the handling and issuing of keys, to secure the safety of their tenants.

Minimum Wage Increase:

In November of 2020, Florida voters approved increases to the state’s minimum wage, which will gradually increase from the current $8.65 an hour to $15 an hour by September of 2026. To comply with the law, employers must follow the below hourly wage schedule for non-tipped employees:

Effective Date

January 1, 2021

September 30, 2021

September 30, 2022

September 30, 2023

September 30, 2024

September 30, 2025

September 30, 2026

Florida Minimum Wage

$8.65

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

How does this change affect my business?

While this change will not directly affect your business until September 30, 2023, it is important for business owners to plan for increasing their wages for non-tipped employees to $12.00 an hour on that date.

Uniform Commercial Code:

Bill SB 336 updates portions of the Uniform Commercial Code, or UCC. The UCC is “a set of laws, adopted by all fifty states, governing and providing uniformity in commercial transactions in the United States.” This bill protects the free transfer of certain business interests, exempting ownership and parts of ownership interest.

Read the full text of SB 336 here: https://www.flsenate.gov/Session/Bill/2022/336

How does this change affect my business?

This change should be a good one for business owners as it hopes to remove potential conflicts with Article 9 of the UCC, which “governs secured transactions, meaning transactions involving the granting of credit secured by personal property (‘collateral’), where the creditor may take possession of the collateral if the debtor defaults on the loan.” Essentially, this change protects the transfer of business interests.

Electronic Filing of Taxes:

Lawmakers have approved a bill which would lower Florida’s tax filing and payment threshold in 2023, in the hopes of creating more cost savings and cutting down the number of papers returned and checks received. Currently, taxpayers must “file returns and remit payments electronically when the amount of taxes paid in the prior state fiscal year was $20,000 or more.” With the new law, the payment threshold will be lower to $5,000 or more.

Read the full text of SB 2514 here: https://www.flsenate.gov/Session/Bill/2022/2514

How does this change affect my business?

This should be another good change for business owners, as it will make it easier for business owners to file their taxes electronically.

The attorneys at The Orlando Law Group represent both experienced and new business owners throughout Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout central Florida. Whatever your level of business experience, the lawyers at The Orlando Law Group are here for you.

If you are dealing with a business issue or looking for some preventative business legal services, please reach out to our office at 407-512-4394, fill out our online contact form.

If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola, and West Orange counties to assist you.

January 13, 2023/by The Orlando Law Group

Independent Contractor Laws Changing this Year (2023)

All posts, Blog, Business Law, Legal Commentary, News

During the pandemic, our country saw a shift from the traditional 9 -5 employees to the gig economy, with companies looking at hiring independent contractors instead of employees.

We have seen entire companies, like Uber and Lyft, where the business model is structured with independent contractors. But we also see businesses utilize independent contractors for CFO positions, for marketing, public relations and for sales.

For both parties, the independent contractor relationship can be beneficial. For individuals, it provides freedom for work. An independent contractor can work when they want and for who they want. There is very little control the company can exert over the independent contractor.

From a business perspective, the tax burden is significantly lower as you do not withhold any taxes or pay any employment taxes, and the independent contractor is responsible for equipment, such as computers and phones.

While there are advantages, a miscalculation can be serious. If you treat an independent contractor like an employee, you could be responsible for a significant payout for wages and taxes if the contractor decides to take the case to court. The state can also pursue your business for other fees.

It is always better to take preemptive steps to ensure the people working for your business are properly classified. We urge you to have The Orlando Law Group review your contractors and their duties to make sure they are within the current law. We will create contracts that outline the responsibilities of each party and the goals of the contract. We will create an employee manual that covers the difference between the employee statuses and will provide rules to the extent that you can for contractors.

Unfortunately, however, what determines who is an independent contractor has changed significantly over the past couple of years by the United States Department of Labor.

The Orlando Law Group is carefully watching these developments to make sure our clients are protected. If you need help with independent contractors in Orlando, Winter Garden, Altamonte Springs, St. Cloud, Kissimmee, Sanford or throughout Central Florida, we are here to help you with a full team of attorneys who are business owners themselves.

In March 2021, the federal government issued new rulings detailing a set of factors that come into play when determining whether a worker is an employee or an independent contract. However, case law in this issue has been set over decades of cases that the federal government needs to look at the totality of the case and that all factors are equal.

The current orders give precedence to some factors over others. Shortly after issuing the new regulations, they realized it would be confusing for businesses and would take years to get new case law that allows for some factors to have more importance than others.

The result? New regulations will be enacted in some format during 2023.

One thing that has not changed is the overriding theme of what constitutes an employee or an independent contractor: economic dependence is the ultimate inquiry for determining whether a worker is an independent contractor or an employee.

This year, the Department of Labor has proposed six factors, all being held equally in an “Economic Reality Test.” The factors are:

Opportunity for profit or loss. If the individual can control its profit or loss based solely on the skills, management and initiative of the individual. For instance, an independent contractor can hire others to do the work in the contractor. An employee cannot.
Investments by the Worker and the Employer. This is straightforward. If the company is providing the equipment and other items needed to complete a job, like design software for a graphic artist, the individual is an employee. An independent contractor provides their own tools for their work.
Degree of Permanence of the Work Relationship. Is the relationship temporary or indefinite? For employees, there usually is no end date and can be terminated at any time by either party. Usually, an independent contractor is only engaged for a specific period.
Nature and Degree of Control. The new rule could be very specific for this one. Do you have substantial control over things like “setting schedules, selecting projects, controlling workloads, and affecting the worker’s ability to work for others?” If so, the person is an employee, not an independent contractor.
The Extent to Which the Work Performed is an Integral Part of the Employer’s Business. It’s difficult to say what is truly integral to the company business, but you could think of it as if you removed the employee from the company, how detrimental it would be to your bottom line and the ability to produce.
Skills and Initiative. Does the work performed by the individual require specific skills and training? If so, do you provide that training to the individual? If you do, chances are that person is an employee, not an independent contractor.

While the federal government has ended public comment, these are not the final rules and they could change when the Department of Labor issues the final rulings. It is important for you to know the regulations on this subject are changing and you should be prepared to make any adjustments.

You can read significantly more details about the proposed rule change in the Federal Registry here. But, that is what The Orlando Law Group does for its clients.

The attorneys at The Orlando Law Group represent business clients in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, Sanford, St. Cloud, Kissimmee, and throughout Central Florida.

If you have a question about your employees and whether they are independent contractors, please reach out to our office at 407-512-4394, fill out our online contact form or save this information in case you ever find yourself or a loved one needing to use it. We provide representation and legal services for both businesses and individuals alike.

January 13, 2023/by The Orlando Law Group

Why You Need an Employee Manual + a Special Summer Deal

All posts, Blog, Business Law, Legal Commentary

Overview

Despite significant job losses during the height of the pandemic, the start of Spring appears to have rejuvenated the growth of businesses, with 431,000 jobs added in March alone. With the excitement of gaining new team members also comes the stress of ensuring that new employees are aware of company policy, environment, expectations, and more. This is when an employee manual steps in to save the day. An employee handbook is a compilation of your business’ procedures, policies, expectations and working conditions and acts as the foundation for your company’s operation. Employee handbooks provide essential guidance to new employees regarding benefits, conflict resolution, anti-discrimination policies, conduct standards, work schedules, workplace safety and security, and much more. These manuals are key documents for any business to have because they set the standard for your company’s culture, environment and essential policies. Not only do employee handbooks help your employees to thrive in their new roles; they also protect your business against potential lawsuits, liabilities and claims. These guides, when crafted by a skilled legal professional, will surely help your company blossom this summer as your business continues to grow and expand!

Key Aspects of an Employee Manual

Employee handbooks will vary in length and complexity depending on your business needs, industry, and size. Important provisions in an employee manual include:

Benefits and compensation;
Communication policy;
Nondiscrimination policy;
Harassment policy;
Employee dress code;
Separation/termination policy;
Workplace safety guidelines;
Policies for sick days and vacation requests;
Company code of ethics; and
Disciplinary procedures.

These provisions ensure employees have a clear understanding of their obligations and rights while also protecting them from potential harm. Employee manuals foster a positive workplace culture founded in clear communication and standardized policies, improving your company’s efficiency and work environment.

Employee handbooks not only protect your employees from harm and serve as an important reference for employees. They can also help to protect your business from claims, such as wrongful termination, retaliation, and discrimination, and work to mitigate the risks of costly legal action by supporting compliance with Human Resources (HR). Seeing as employee turnover is expected to rise by nearly 20% this year, employee handbooks can be important tools to support retention by creating an environment of mutual respect and keeping employees motivated. Additionally, employee handbooks are crucial during the onboarding process, by providing new employees with both clear expectations and a connection with the company’s mission. This is critical in maintaining positive retention rates, as 69% of employees are more likely to stay with a company for three years if they experienced wonderful onboarding.

Benefits of Employee Handbooks

Employee handbooks provide your company with a multitude of benefits no matter the size. A well-written employee manual creates a clear foundation for management to ensure the entire business is on the same page with consistent enforcement of policy. This ensures that employees are treated equally and policies are fairly enforced. The main purpose of an employee handbook is to bridge the gap between the employer and the employees regarding expectations and requirements, and encourage accountability on both sides of the working relationship, helping your business thrive by preventing misunderstanding and dissatisfaction due to unclear policies. A “toxic” workplace culture has been driving a large amount of resignations in recent years, but a clear employee handbook can work to mitigate this. Handbooks allow for open discussions about company policy, making team members feel included and heard in the company, which limits dissatisfaction in the workplace.

Handbooks are also great at minimizing conflict within your company. A lack of clarity on policy and procedures often leads to conflict, as employees feel confused and frustrated. Employee handbooks also save your business essential time, as employees will have the manual as a point of reference whenever there are disputes, avoiding solvable HR issues getting out of hand and dragging out over a lengthy period of time.

In the technological age of remote working and digital communication, having direct, coherent company policies and expectations readily available for employees is essential. Additionally, clear expectations for how work-provided cell phones and laptops should be used ensure that company equipment is well taken care of. From the very first day on the job, employees will be immediately introduced to and immersed in the values and culture of your company, setting the standards for employment and creating a healthy workplace that addresses conflicts before they arise.

Importance of Attorney Guidance

It is important to have an attorney specialized in business law draft your handbook because they know the most important sections to be included, how to tailor the manual to suit the specific needs of your business, how to best protect your company’s rights, and how to avoid liability issues in the future. Clear communication is absolutely key to a successful business, which is why an attorney will work hard to ensure your company policies and expectations are explained in plain terms. The guidance of an experienced business law attorney can help to protect you from potentially costly legal battles in the future, as poorly written handbooks or boilerplate manuals downloaded from the internet may subject you to liability. A knowledgeable attorney will make certain that all necessary provisions are included in your handbook and that federal, state, and local labor laws are followed, and will determine the appropriate policies for your business to protect both you and your employees without sacrificing your company’s valuable mission, values, and vision.

A Can’t-Miss Summer Deal!

In order to help your business bloom in this summer heat, we are excited to offer an incredible deal on employee manuals! No matter how large or small your business is or whether it is 10 days or 10 years old, employee manuals are absolutely essential for clear communication of company expectations, policies, and aspirations. For only $500, you will receive the draft of one employee manual by an experienced business law attorney, with one set of edits requested by you included in the flat fee! In order to take advantage of this amazing deal, please call our office at 407-512-4394.

June 22, 2022/by The Orlando Law Group

Why Waiting to File for Bankruptcy Could Cost You

All posts, Bankruptcy, Business Law

Bankruptcy is a bad word, but it doesn’t have to be, and it shouldn’t scare us. We at The Orlando Law Group believe in breaking the bad connotations these words grow into by giving you an informed outlook, as well as the information that no one talks about. Sophia Dean has a vast wealth of experience when it comes to bankruptcy, and we wanted to ask her some of the questions we commonly receive regarding the matter.

Why do you think that people wait to file bankruptcy?

There’s a couple of reasons that might be causing someone to wait. I think people tend to avoid their problems. It is a lot of paperwork so some people might be dreading that aspect of filing. Usually, I imagine it is a multitude of things, such as having money coming in that the client does not want to lose. One example I can give is that of the stimulus checks. People keep putting off filing because they keep receiving their stimulus checks. It creates an environment where one might be thinking, “There will be a stimulus check or tax refund around the corner that I don’t want to forfeit.” Through bankruptcy, you can only protect certain amounts of money. This includes $1,000 personal property as well as your home, if you own it. If you do not own a home you get a wild card, which protects $4,000 of personal property. Waiting for any reason could potentially mean that you fall outside of the financial bracket needed to file bankruptcy, and that’s why you need to file at the time when you talk to the attorney, if the time is right.

What are some factors that quality for the time being right?

The first thing we will figure out is if you do qualify for bankruptcy. For example, let us say you have a job where you are making under the threshold, and you qualify for a Chapter 7 Bankruptcy. Step two is, you have debts you cannot pay. You may not be in default yet, but you are struggling to pay your debt, and you are living paycheck to paycheck. The main two factors are your income and your debt. Let us say suddenly you get a raise, and that affects your income. That could potentially put you out of the range for qualifying for bankruptcy. There is a very small window for you to file, and that is why it is so important to commit to the decision if both factors indicate so. When considering criteria, there is a window of six months where we will look back to see what has happened to your income. If you wait to file and something happens to affect that income, you could potentially be exempt from declaring bankruptcy and clearing your debt.

Then on the debt side, your case could go to a debt collector quickly. You can file bankruptcy, but they will still be garnishing your wages. For example, let us say you meet with us to file for bankruptcy, but for whichever reason you do not follow through and times goes by. One day, you could potentially wake up, and all your money could be withdrawn from your bank account because the courts had filed a judgement and garnished your bank account entirely. These are the repercussions of waiting to file for bankruptcy. What we try to help our clients understand is that, at some point, if you do not pay your debts it will result in bank account garnishment. We have no way of knowing when that time will be, but we cannot depend on it happening eventually. We need to act like it is going to happen right now because it could.

How Does Bankruptcy Protect Me?

A lot of people try to continue to pay their debts, and then they come back later and try to file. This does not help because, many times, they do not qualify at that point for bankruptcy, whereas they could have before. Bankruptcy acts as a forcefield, and it is not only a way to wipe clean your debt, but it’s also a way to protect your assets. Filing could be the singular act that stops you from losing money and possessions in the long run.

Why Researching Online Can Mislead You

We spoke to a client who had been doing their own research on google. They moved here from another state and were under the impression that they could not file bankruptcy in Florida for two years. That is wrong, but that is the answer they found on the internet. If you have just moved here, you must be here for 91 days to file in the state. The exemptions, which can all be sorted out with an attorney, is where that client was seeing information about waiting for two years. That has nothing to do with you being able to file for bankruptcy, and because of a misinterpretation of information, they did not qualify for a Chapter 7 because they got a raise in the interim. If they he called me two months earlier, they would have qualified. Therefore, acting immediately can be in your best interest, and why doing your own google research can be misleading.

When I File for Bankruptcy, Are All My Debts Wiped Clean?

Not all debts, but most of them. Exceptions include student loans as well as certain types of tax debt, and certain types of criminal debt. Credit card debt, medical debt, loan debts are all wiped clean. Even mortgage debt is wiped clean, and if you do not want to pay that debt, you do not have to. You will not be able to keep the house, of course, but it will allow you to hit a reset button on your bills. Bankruptcy is a tool that is used to help people who have fallen victim to a circumstantial debt through no fault of their own, and it’s there to help you get back above water.

Should You File Bankruptcy Before You Get A New Job?

Yes. If you are considering bankruptcy, an increase in wages could potentially push you outside of the qualification for filing. We see this many times because there is not enough information educating individuals. Not only that, but you do not want to have to try and stall you getting hired because you are trying to qualify. The best practice would be to go ahead and file, and then begin your job search. Your income level will determine which type of bankruptcy you qualify for, so it is very important that you talk with one of our attorneys before any major changes happen that could affect your income/debt ratio.

Can I File For Bankruptcy If I Am On Unemployment?

One of the questions we get a lot is if you can file bankruptcy if you are on unemployment, and the answer to that is yes, you can. Unemployment does not affect anything regarding filing for bankruptcy. If you are receiving unemployment and you expect to start a job soon, now is the time to give us a call.

Another life change that can alter your ability to file is a change in marital status. Let us say you are getting married, but both of you have debt and want to file for bankruptcy. If you wait and try to file after you are married, then you are counted as having a joint income. This could prohibit your ability to file for bankruptcy and stand in the way of your wiping clean your debt. It may seem obvious, but we have seen situations like this, and because there is not enough education on bankruptcy as a tool, facts like these get overlooked or perhaps are not even considered in the first place.

Can I File Twice?

Whether you can file for bankruptcy does depend on if you have filed before and when that took place. There is an eight-year filing period between two Chapter 7 Bankruptcies. The best practice you can have is to treat this like a one-time situation, even though we have known clients that were looking to file twice. In that situation, unfortunately they would have to wait, but the good news is that, by having the discussion, we can plan in the coming years and work hard to prepare.

In Conclusion

The cost of waiting to file is so much higher than the cost of filing for bankruptcy. Attorney’s fees are small in comparison to the fact that your debts, which you are struggling to pay at the time and may never conquer, could potentially be wiped away. My initial consultation is free, so make sure you have your questions prepared and information ready to discuss in that first consultation, and I would be happy to help anyone erase their debt and start fresh. That is what bankruptcy truly is, not a bad word, but instead a tool to help you reset your ability to live your life free of debt and full of possibility. If you are considering it, let me help you make the journey just like I have for so many others. You are not alone in your struggles, and bankruptcy may just be the solution you are seeking.

March 1, 2021/by The Orlando Law Group

Florida’s CBD and Marijuana Laws are Evolving

All posts, Business Law

We have a saying here at OLG. “Some laws stay the same, and others are always changing.” For Businesses and Consumers alike the world of CBD and Marijuana Laws are evolving within States and Federally. As of March 2019, a bill was passed that allowed smokable medical marijuana to be sold in state-certified medical marijuana treatment centers to patients with a medical marijuana card. Additionally, as of January 2020, the sale of CBD and Hemp products for consumption or application containing less than 0.3% delta-9-tetrahydrocannabinol (THC) concentration became legal for anyone over the age of 18 and to be sold without a medical marijuana dispensary license.

Marijuana at the Federal Level

Early in December of 2020, the House of Representatives passed the MORE (Marijuana Reinvestment and Expungement) Act. While this act is unlikely to pass in the Senate, the movement towards federal acceptance of marijuana use and sales continues to trend upwards; however, ultimately it should be noted that on a Federal Level, marijuana remains illegal as a schedule 1 drug for high potential for abuse and little to no medical benefit. In 2018, under the Trump Administration, the Department of Justice announced that Federal Prosecutors can pursue criminal cases wherever state and federal marijuana laws conflict. However, this policy has largely been symbolic thus far. Law enforcement officers make a majority of their marijuana arrests under state, not federal law.

Marijuana in Florida

As previously stated, in March of 2019, Florida passed a bill that allowed medical marijuana to be sold in state certified medical marijuana treatment centers to patients with a medical marijuana card. Additionally, Florida legislators are working on drafting regulations to allow edible marijuana to be consumed with a medical marijuana card, but at this time only smokable marijuana is legal. To be a qualified patient, you must be a resident of Florida and receive a diagnosis from a qualifying physician for a qualified medical condition (for example; cancer, epilepsy, HIV/AIDS, PTSD, Crohn’s disease, Parkinson’s disease, etc.). Patients and their caregivers will then be entered into the Medical Marijuana Use Registry by their physician. After this, patients and their caregivers must apply for a Registry Identification Card. Once all these steps are completed, your order for medical marijuana may be filled at a state-approved medical marijuana treatment center upon prescription by your doctor.

CBD and Hemp in Florida

In 2018 the Farm Bill was signed into law bringing sweeping changes to how we grow and consume CBD and Hemp products. The Farm Bill created a process that helped state and tribal governments establish Hemp Programs in which individuals could legally cultivate hemp. CBD and Hemp are legal to both cultivate and consume in the state of Florida for anyone over the age of 18 so long as the product contains less than 0.3% THC content. While no licensing is required to consume hemp products in Florida, licensing is required for those who wish to be grow and/or sell hemp products.

To sell CBD/Hemp in an ingestible manner, whether prepackaged or not you must have a food establishment permit. Additionally, there is further licensing requirements if your products have dairy or frozen components. Topical CBD application is considered a cosmetic and so long as you are selling the topical in or into Florida in its original packaging no license is required to sell. To grow and cultivate Hemp plants, you must not only apply for a license, you must also include fingerprints, environmental containment plans, transportation plans, and follow specific hemp cultivation site statutes, among many other requirements.

What Does Having a Medical Marijuana License Prevent?

If you’re looking to get a CWFL (Concealed Weapons and Firearms License), there may be some conflicting elements. Florida’s Agricultural Commissioner, Nikki Fried recently addressed the subject on the podcast The Marijuana Solution. Her logic is that, due to many alcoholics and those addicted to prescription drugs owning guns, medical marijuana license holders should be able to as well, but from a legal perspective, this may not be as solid as one might assume. On top of stating that the Department of Agriculture would, “not be taking anyone’s concealed weapons permit, or refusing to issue a CWFL,” Nikki also publicly announced that she herself has both licenses. The incongruency lies in the fact that marijuana is still considered an illegal substance according to Federal Law, and that conflicts with those in possession being able to legally own a gun. Fried did mention that she plans to lobby congress about the issue, but truly only time will tell how the Federal Government plans to treat marijuana as a substance.

We recommend trepidation at every stride, and an innate understanding of your rights. Due to the fact that these laws are changing over time, it’s important that you speak with a lawyer immediately when you have questions. We’re here to help, and will make sure to keep you updated with the laws as they evolve, which we guarantee they will. If you’re ever seeking answers, make sure to contact an experienced attorney for your needs today.

January 30, 2025/by The Orlando Law Group

The Current State of Foreclosures, Evictions, and Real Estate

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

With the changes brought about by the COVID-19 pandemic, families have struggled more than ever – and this is evidenced in the strain put onto the housing industry. We live in a state where many maintain surmountable income through investment properties, taking advantage of a thriving rental market bolstered by tourism. It all works very well on a good day but consider the sudden halt many businesses and staple jobs have come to, and you have a market that for many cannot make ends meet.

Luckily on March 18^th, measures were taken to begin to try and help the situation. A moratorium was placed that could legally protect effected renters from being evicted. This moratorium, and its consequent extensions have created a murky environment where many do not understand what applies to them, what the end-goal is, and what they will be responsible for when the moratorium is over. In this article, we want to take a deep and current dive into the state of foreclosures, evictions, and the extended moratorium so that you have a better understanding of how we are moving forward together.

The Extensions Continue

As of the writing of this article, the current extension to the moratorium on foreclosures and eviction processes will run until the end of the year, December 31st. Its purpose is to assist homeowners and renters that have undergone financial hardship because of job loss due to COVID-19. From a legal perspective, whenever we see language like this, we are always thinking of the word proof. Pay stubs and any written evidence that can back and prove that you lost your job due specifically to the pandemic will help strengthen your argument. As one would expect, there will be those looking to game the system, so hiring a lawyer to help you through the process is absolutely be a good idea.

In the lending world The Department of Housing and Urban Development (HUD), the Department of Veterans’ Affairs, and the Department of Agriculture have all extended their foreclosure moratoriums on guaranteed or insured loans covered under the CARES Act until December 31^st. Fannie Mac and Freddie Mac also have extended their moratorium on foreclosures for enterprise-backed, single-family mortgages. All of this has one main goal, to help stave off sudden, major deterioration of the housing market. Protecting those who are paying rent alongside those who are paying loans off will hopefully allow for time to adjust, catch up, and recalibrate.

Payments Will Be Due

It is vital to understand the implications of these laws. Payments are not being waived. As a matter of fact, the true definition of moratorium is a temporary prohibition of any activity. It, essentially, is a legal pause button, extending but not absolving the money that you owe. If your finances have been impacted by the pandemic, then pivoting will be essential. For those who are impacted in a way that substantially cripples their finances, bankruptcy will have to be a consideration, and that is where hiring a lawyer could work to your benefit. Sophia Dean, legal attorney with The Orlando Law Group, notices a degree of similarity between now and when she helped individuals through the housing crash of 2008.

“When I would consult individuals who were facing immense financial strife, I would encourage them by helping them understand that they were beginning a journey, and that it would take time to get back to where they needed to be. Honestly, many nights I would lay awake with the weight of their situations on my heart, thinking of creative ways for us to build back a foundation.

My advice is do not wait. People make the mistake of thinking that a lawyer will charge you for every second you spend on the phone or in a zoom when the truth is quite the contrary. My consultations are free. A conversation with me is free, and I encourage those struggling to have that conversation and call me immediately. The most important action we will do during this time is make informed decisions.”
Sophia Dean, Attorney at The Orlando Law Group

The Impact On The Real Estate Market

It is a different time for those working in the field of Real Estate, given the changes brought to what was a market with a steady flow of inventory. With less families and individuals putting their property up for sale, prices have gone up. When inventory is low, the power goes to the seller. Lower interest rates have encouraged buyers to enter the market, and we anticipate buyer competition to be fierce, even throughout the pandemic. For an analysis of how COVID-19 has affected the market, we asked Michael Curtin, Commercial Broker of HIVE Commercial Realty his interpretation of the Real Estate Market.

“We’ve seen inventory go down on the residential side, but many commercial opportunities are still growing. With hardship always comes a shift in the market, and this will be no different. I anticipate that we will see many find difficulty making ends meet, and therefore are forced to turn over their real estate portfolios or alter their plans to accommodate the changes brought about by the pandemic.

My biggest recommendation right now – stay flexible with your goals and expectations. If you can grow your business in a creative way to accommodate social distancing, now’s the time to do it. Elevate your marketing and work hard to innovate. Learn the market so that when it begins to change, you can change with it.”
Michael Curtin, Commercial Broker at Hive Commercial Realty

Our Key Takeaways

We are beginning to circle back around to one year since protections were enacted for individuals impacted by the pandemic. With the extensions stretching to December 31^st, owners experiencing financial hardship due to COVID-19 may pause, suspend, or reduce mortgage payments for 180 days. If that owner receives forbearance and decides to apply for a second delay, the maximum number of days they can receive forbearance is 360 days total.

This all hints at an unavoidable, eventual elephant in the room. When the eventual resumption occurs, there will be hardship. Many will struggle to make up the money owed, and there will be situations without easy answers. That is why hiring a lawyer and working with a law firm that has experience will be vital. We are poised and ready to help, to lay away at night coming up with options because we care for our clients. We see ourselves in them. We know they live in a complicated world that seldom takes into consideration their concerns. That is why you have us to help you navigate, no matter how murky the waters may seem.

August 2, 2023/by The Orlando Law Group

Why Copyrights Could Be The Biggest Area Of Law In 2021

All posts, Business Law

Why the Resurgence of Relevancy?

Digital content is being shared ALL the time. This transience of information has led to an influx of content being created and shared across all mediums. Once placed into the public domain, as easy as it may seem for us to disseminate an original work, it is even easier for someone to imitate it. This has sparked a new and revitalized relevance for copyright law and understanding how digital mediums have made it more difficult for us to determine who owns what. All of this leads us to believe that, in 2021 and moving forward, copyright could potentially be one of the biggest areas of law for a generation born on the internet.

The Stakes

For many companies, copyright suits can easily involve millions of dollars, simply because the stakes are tied to the company’s branding or the product created.

Additionally, because we are in a new digital era, future copyright cases can set brand new precedence, which may alter the protections that copyright owners have enjoyed for so long. The ability to transform original works, either through parody or criticism, has created an influx of cases that require a factorial evaluation to be conducted by the courts. Was the work transformative enough to make it unique?

Such factors include i) the purpose and character of the use, which includes whether the use is of a commercial nature or is for nonprofit educational purposes; ii) the nature of the copyrighted work, iii) the amount and quality of the work that has been copied; and iv) the harm brought by the transformed work.

For the small-time influencer, this could mean the difference between a few paychecks, but for companies, this can be a determining factor in their ultimate success. To explore how copyright law is being used today, we wanted to break down three cases that could be influential in 2021.

Three Examples of Cases on the Block

Google v. Oracle

This is a case involving the application of copyright protection to software owned by Oracle and resolves the question regarding whether Google’s use in creating an android operating system that is comprised of Java coding constitutes fair use. In January of 2019, Oracle initiated a case against Google, alleging improper use of 11,000 lines of Code from JAVA SE, which was found not to be covered under fair use by The U.S. Court of Appeals for the Federal Circuit. This case has made it all the way up to the United States Supreme Court, who heard oral arguments on the issue Wednesday Oct 7, 2020, and has yet to reach a decision on the matter.

The main challenge that lies ahead is in determining whether the specific code used by Google within the Android interface is considered to be an algorithm, formatting, functions, logic or system design, which then would not be covered under copyright law, as they are not considered a means of creative expression. Digital coding, although used widely, can become the subject of stringent copyright criticism. As we move into a more digital frontier, it becomes important to understand if the coding you are using can be fairly used.

National Music Publishers Association v. Peloton

Music has generated a multitude of copyright cases as different platforms have been developed and used for streaming purposes. To place this into context, take the case National Music Publishers Association v. Peloton. In this matter, a $370 million lawsuit, which more than doubled the original $150 million lawsuit, was filed by the National Music Publishers Association last March, when it was alleged that Peloton used over 1,000 musical composition without obtaining the proper licenses to use them. A settlement was reached where the creators for the songs were properly compensated for the use of their music included in the Peloton experience. Peloton took the initiative to remove the NMPA protected songs for all workout videos provided to the public.

Suess Enterprises LP v. Comic Mix LLC et al

This third case involves our beloved Dr. Suess and a claim brought by his estate against the publisher for a work that mashed up “Oh, the Places You’ll Go!,” and other Dr. Suess works, alongside Star Trek imagery as well as characters from the original fictional franchise. The United States District Court for the Southern District of California found that the comic book’s use of the material was fair use and was treated as parody rather than a complete infringement on the original. This “highly transformative work” allowed for well-known characters to interact in a way that was not so different from their original works.

This being said, it doesn’t always happen that way. The opposite actually occurred in Dr. Seuss Enterprises, L.P. v. Penguin Books USA, Inc., 109 F.3d 1394 (9th Cir. 1997), whereby an author used the characters created by Dr. Seuss to retell the story of the O.J. Simpson murder trial. The appellate court determined that the author’s use of such characters in this work created a satirical piece, not a parody. As such, it was not transformative enough to be protected from a copyright claim.

Our Take on the Matter

These cases bring to light how important certain words are when reflected in new, legal light. Gaining clarity on terms like parody and fair use is vital for navigating in a way that avoids legal pitfalls.

What is parody?

Miriam-Webster defines parody as “a literary or musical work in which the style of an author or work is closely imitated for comic effect or in ridicule.” Parody is important to establish, so that some measurable line of difference exists between your work and the work you have utilized.

What is fair use?

Fair use is a doctrine allowing for the use of copyrighted work for transformative purposes, such as for criticism, parody, comment, news reporting, teaching, scholarship and research. Fair use is becoming a common practice, especially given the rise in reaction content – videos and posts that are offering their opinion on a certain song, movie, or work of art.

Copyrighting is crucial to the protection of your works, no matter the medium. If you’re creating digital content online, having an understanding of copyrights will help you be confident in your creations. You can rest easy knowing that your work remains original. Not only this, when establishing a business, you need to take into consideration how unique your endeavor is.

What This Means for the Future

With technological changes, come changes to the law. Copyright laws will have to alter and grow to accommodate a market that has become highly digitized, paving the way for possible fair use claims in years to come. As a company or brand’s content gets used by the public, they will have to determine if it is worth litigation or not, especially if it grants them popularity and added visibility. One thing we can be certain of: copyrights have never mattered more than they do right now. That is why hiring a lawyer can offer you armor. It can be the difference in how protected your content, business, or brand remains.

Want to know the difference between trademarks and copyrights?

We’ve got a blog that talks about exactly that.

November 4, 2020/by The Orlando Law Group

Home Away from Home – the Truth About Airbnb

All posts, Business Law

Vacation Rental sites such as Airbnb have exploded in popularity recently, as they provide the experience of a home away from home with prices that often rival hotels. The United States alone has 660,000 listings, making it the Nation with the highest number of Airbnbs. While it may seem like a dream experience, how much do both vacationers, and hosts really know about what they are liable for and what they are protected from? What happens if you are the host, and something happens to the property because of the clients that decided to rent? Conversely, what happens if you are the vacationer, and part of the property becomes damaged based on prior conditions, but you are now being blamed? Airbnb readily makes promises of protection for both parties, but what true, legal armor do you receive when you agree to work with this company?

Who is AirBnb

The vacation rental market has exploded in popularity recently as renters seek unique experiences in worldwide locations, all at the touch of their fingertips. Airbnb prides themselves on providing just that, and their process is streamlined to make it quick and easy to book. Their origins just so happen to be steeped in speedy resolutions. In 2008, Airbnb (Air Bed and Breakfast) was formed when a conference ran out of hotel space and the founders opened their home to renters in need. The company has come a very long way since then. Today, Airbnb boasts 750 Million all time arrivals, 7 Million Airbnb listings, and 220 countries with listings available. However, it is what Airbnb decides not to tell you that can be even more interesting and applicable to their services.

How Frequently Does Litigation Occur?

One might be thinking, “Does Airbnb ever undergo complex litigation?” According to an article published by Bloomberg in February of this year, Airbnb has filed 11 lawsuits against an American city or state government since it was founded. It has appealed an adverse decision at least three times. The article states that half of those legal hurdles have occurred in the past two years. Not only this, but litigation against Airbnb has also risen, with the company being involved in 230 cases through the end of 2019. These ranged from video cameras in bedrooms to severe bedbug infestations and even a situation where a guest tossed a lit cigarette into the trash and burned the property down. As one would expect, Airbnb advertises themselves as being expeditious and user-friendly, but complications beg the question, “What protection does Airbnb truly offer?”

Host Protection

Airbnb readily advertises two different programs to assist Hosts: Host Guarantee and Host Protection Insurance. The Host Guarantee provides protection for property damage to possession, units, or home, against a guest. It is important to note that this does not replace homeowners or renter’s insurance. The Host Protection Insurance program may cover hosts in the event of third-party claims of personal injury or property damage. Airbnb, however, has an extensive list of exclusions to these programs that are important to note.

anything related to mobile, aircraft, or auto equipment
assault and battery
Chinese drywall
communicable diseases
contractual liability
cross-suits
employment related practices
electronic data
distribution of material in violation of statutes
expected or intended injury
fungi or bacteria; exterior insulation
liquor liability
nuclear risks
pollution
product recall
sexual assault
watercraft
war intelligent

That list is not indicative of all the exceptions included and any host should read into what they are not being covered for before hosting guests.

Renter Protection

Traveling can be a stressful time for vacationers, so you should always know what will occur if the worst happens. One might assume that traveler’s insurance and Airbnb’s renter protection policies might contain similarities. Ultimately, Airbnb offers no protections that even come close to replicating traveler’s insurance. Airbnb does offer a 24/7 customer support line for reporting instances such as a wrong location listing, an incorrect number of rooms, unknown animals, and more. This comes nowhere close to offering comprehensive protection to a vulnerable individual on vacation.

Should an incident occur where a guest could even begin to think about considering legal action, they may not be able to. In a recent case in Florida’s Second District Court of Appeals, Doe V. Natt, Airbnb argued that “the Does’ claims were subject to arbitration under Airbnb’s Terms of Service, which the Does agreed to be bound to pursuant to a “clickwrap” agreement they had entered when they first created their respective Airbnb accounts online.” The Court ultimately remanded the case for further decision, however, until that decision is made renters should be aware that any case they wish to bring, may be subject to Arbitration.

Go or No Go?

You may be asking yourself if Airbnb is worth the risk from either perspective now. As Airbnb says, the best remedy is always to do your own thorough research first. This is very pertinent advice with any company you decide to work with, large or small. Understanding your legal protections from the beginning will set your mind at ease, and if something does go wrong, you will have a familiarity with where to begin. Check out reviews, photos, and guest experiences before booking. If you have specific questions, do not hesitate to ask them. More knowledge allows you to make the best possible decision for your property as well as your family and friends.

Hosts should make sure to remove objects they are concerned about, as well as vet their homes for potentially dangerous areas. Ultimately, it is important to know that some protections are in place, but the best safeguard for your property and vacation is some good old-fashioned research. Having a law firm on your side, like The Orlando Law Group, for both property projection and personal injury, while also exercising caution as both a renter and host will put you in the best position.

February 18, 2025/by The Orlando Law Group

Bankruptcy Could Offer You A Way Out

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

There is no question that the U.S. has a financial problem. The statistics are indisputable. Americans carry an average personal debt of over $90,000. Many times, it’s through no real fault of their own. There are so many factors to consider. The cost of living continues to rise, and as it does so it is becoming easier for people to get credit when they may not have the means to cover their bills.

Additionally, with the unemployment rate skyrocketing due to the COVID-19 pandemic, times are difficult for many people, and that includes the struggle with finances. We’ve all seen the headlines about looming eviction rates and bankruptcy surges, but what those headlines won’t tell you is that for many, these issues are not on the horizon, but rather on their doorstep.

While some people tend to shy away from bankruptcy or think it is a negative thing, that isn’t the case at all – when it’s processed the correct way.

What is Personal Bankruptcy?

Personal bankruptcy is a legal process in which a debtor files with their local court system. As a result, the debtor’s personal assets are evaluated, and some may be sold in order to offer creditors a portion of what they are owed.

The process of filing for bankruptcy also creates something called an “automatic stay,” which means creditors are blocked from collecting your debts until the court proceedings are over. This can give you a bit of breathing room while your case is being reviewed.

Bankruptcy works differently depending on an individual’s financial situation and how the court sees it. In some cases, a financial plan may be worked out that better fits with your income and needs, so you can pay back your creditors at a different rate. Other times, your debt will be completely eliminated.

In the case of Chapter 13 bankruptcy, the debtor will develop a plan based on their personal finances to repay their creditors over a fixed period of time.

Chapter 7 or Chapter 13?

Consumers generally file either a Chapter 7 or a Chapter 13 bankruptcy. Some people believe that a Chapter 7 bankruptcy is the best way to go, but that is not always the case. Everyone has their own unique situation which should be analyzed by a professional to determine whether a Chapter 7 or a Chapter 13 bankruptcy is more appropriate. For example, if you do not have a lot of unsecured debt such as credit card debt or medical bills, but you have a home worth $200,000, a first mortgage of $210,000 and $75,000 on your second mortgage, and you want to keep your house, filing a Chapter 13 bankruptcy may be appropriate for you because you may be able to “lien strip” the second mortgage.

On the other hand, if you have a lot of unsecured debt such as medical bills and/or credit card debt, then Chapter 7 may be more appropriate for you. However, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made changes to the Bankruptcy Code, which makes filing a Chapter 7 bankruptcy more complicated. To be eligible for a Chapter 7 bankruptcy there is a 2-part test. First, there is the “means test”. This subjects debtors to an income-based test. But if the debtor’s income is below the state’s median income, then the debtor is not subject to the means test. Additionally, debtors with primarily (more than 51%) business debts (including investment properties used as rental properties) may file a Chapter 7 bankruptcy regardless.

However, even if you pass the means test, you still have to pass a second test known as the “abusive test”. The United States Trustee or any creditor can move to have your case dismissed. The bankruptcy Court could dismiss your case if the Court finds that you have the ability to pay back a significant portion of your unsecured debts.

If you are eligible to file a Chapter 7 you are looking to liquidate your debt. You are able to keep some property and may have to let other property go. You can keep exempt property.

A Chapter 13 bankruptcy is a form of reorganization. The debtor proposes a plan to pay his creditors over a 3 to 5-year period. Generally, the debtor keeps property and the creditors get less money than they are owed. However, the unsecured creditors must receive at least as much through the Chapter 13 plan as they would have received in a Chapter 7 liquidation.

The Benefits of Filing for 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.

Is Bankruptcy Right for You?

Unfortunately, bankruptcy has been stereotyped in a negative light over the last several years. While it certainly is something that should be used as a last resort to get out of debt, it doesn’t mean your credit will be ruined forever, and it isn’t something you should be embarrassed about. Bankruptcy exists for a reason – to help you get back on your feet.

If you are buried in debt, no matter the reason, and you’re not sure what else to do, bankruptcy could be your best option to get a fresh start with your finances.

Feel free to contact the Orlando Law Group for more information on our bankruptcy services and how we can go to work for you to start the process. Our years of expertise with bankruptcy law will make the entire experience as easy on you as possible, so you can focus on eliminating the debt from your life and starting over with your finances in a healthy and responsible way.

September 30, 2020/by The Orlando Law Group

Trademarks – What You Need To Know

All posts, Business Law

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.

January 6, 2021/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.

May 13, 2021/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.

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 5, 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

January 27, 2022/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.

January 12, 2022/by The Orlando Law Group

senior couple meeting real estate attorney

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.

January 23, 2018/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.

January 27, 2018/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.

January 27, 2018/by The Orlando Law Group

Medical insurance is a large expense for employers who provide that benefit. However, if you have older employees then employers can save money on their medical insurance, which seems counterintuitive.

Employers can save $5,000-$11,000 per employee (65 or older) on health insurance just by making a few simple changes.

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.

May 2, 2017/by The Orlando Law Group

A company’s employee handbook is a vital document that helps welcome new employees into the fold, while explaining the key expectations of their new employer. But when constructing such a significant tool that serves as the backbone of the onboarding process, it is important to watch your wording, so as not to unintentionally create a binding legal employment contract.

Overview

Key Aspects of an Employee Manual

Benefits of Employee Handbooks

Why do you think that people wait to file bankruptcy?

What are some factors that quality for the time being right?

How Does Bankruptcy Protect Me?

Why Researching Online Can Mislead You

When I File for Bankruptcy, Are All My Debts Wiped Clean?

Should You File Bankruptcy Before You Get A New Job?

Can I File For Bankruptcy If I Am On Unemployment?

Can I File Twice?

In Conclusion

Marijuana at the Federal Level

Marijuana in Florida

CBD and Hemp in Florida

What Does Having a Medical Marijuana License Prevent?

The Extensions Continue

Payments Will Be Due

The Impact On The Real Estate Market

Our Key Takeaways

Why the Resurgence of Relevancy?

The Stakes

Three Examples of Cases on the Block

Our Take on the Matter

What This Means for the Future

Who is AirBnb

How Frequently Does Litigation Occur?

Host Protection

Renter Protection

Go or No Go?

What is Personal Bankruptcy?

Chapter 7 or Chapter 13?

The Benefits of Filing for Bankruptcy

Is Bankruptcy Right for You?

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

Related article

What is the SBA $10,000 DIsaster Loan?

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