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

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

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

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

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

 It’s typical for new business owners to focus primarily on things like marketing, staffing, and sales, but establishing a relationship with a trusted attorney early on helps to head off potential issues before they arise. Most new companies don’t approach a law firm until they’re already being sued, and by then it may be too late!

There are a plethora of vital tasks a firm such as The Orlando Law group tirelessly undertakes for business owners that range from important agreements, to mergers and acquisitions, to succession planning and more. 

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

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

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

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

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

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

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

The companies that we breathe life into through ingenuity and elbow grease can be a legacy we leave behind at the end of our careers. Will you be prepared for retirement? Who takes control of your company when you ride off into the sunset? These questions can be easily answered by a well laid out succession plan.

There is no end-all instruction manual for planning a smooth succession, however, the following steps are widely accepted best practices which should be implemented to ensure this transitional period has every advantage going in.

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

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

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

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

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

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

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When starting a business, it is always best to prepare for every conceivable possibility. When a business has more than one owner, certain eventualities need to be addressed as early as possible; such as the question of what happens to the business if one partner leaves?

This situation and many others are easily spelled out in a buy/sell agreement. Much like a pre-nuptial agreement, which divides assets and sets conditions of a marital divorce, a buy/sell agreement spells out the conditions which transpire when a business partnership dissolves.

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

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

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

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

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

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

Armed with your idea and your
business plan, the next step is answering one important question: How should I legally structure my business? In most instances, you will probably have to choose between a limited liability company (LLC), a partnership, a corporation, or a sole proprietorship.
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The legal and financial ramifications of this decision are significant. Plus, you really can’t move forward and take important steps such as registering your name or getting your tax ID number until you’ve answered this critical question.

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

The most important factors for you to consider will include:

·        the potential risks and liabilities for your business;

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

·        your income tax situation; and

·        your investment needs.

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

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

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

Online Businesses offer an outstanding opportunity in today’s market for entrepreneurs and leisure hobbyist and enthusiasts that want to take it one step further.  If you are considering a new online business, there may be federal, state, and local laws that must be met and standards and procedures to follow in order to comply. There is also a structure to follow if you need financial backing.  Here are some great tips to consider:
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Your Business Plan:  What is a Business Plan and Why Is It Important?

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

Declare the Controlling State Law

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

Best Practices Suggest You Set Up a Separate Business Checking Account

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

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

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

Other Protections You May Need

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

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

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

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

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

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

 In the wake of a workplace injury, many employees are in great need of compensation, as their newfound injury has brought incredible hardship to their finances. It is natural for a responsible employee to want to collect as much compensation as possible, so they can pay their medical bills, mortgage, or rent, and still have money for any accommodations that might need to be made to their homes (i.e. wheelchair modifications).
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Unfortunately, most workers are not eligible to receive unemployment benefits while they are getting temporary disability benefits under workers’ compensation. Florida workers’ compensation law doesn’t allow injured workers to collect unemployment compensation while simultaneously collecting temporary disability or permanent total disability benefits.

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

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

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

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


In April 28, 2016, the Florida Supreme Court rendered its decision in Castellanos v. Next Door Company. Shortly thereafter the Florida Supreme Court rendered its decision in Westphal v. City of St. Petersburg on June 9, 2016. The Castellanos case had been tried on July 3, 2012 and then oral argument took place on November 5, 2014. Westphal was tried on June 22, 2012 with oral argument occurring on June 5, 2014. 

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

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

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

WHAT EFFECT WILL THESE DECISIONS HAVE ON EMPLOYERS

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

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

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

WHAT CAN BE DONE TO MINIMIZE THE IMPACT

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

By Attorney Heather McLeod

If you are hurt on the job, it’s important that you know what options are available to you to alleviate the anxiety of unpaid medical bills. While Workers’ Compensation won’t solve all of your problems, it should at least help with the financial burden the injury has created.

Workers’ Compensation in a Nutshell

Often called “Workers’ Comp,” Workers’ compensation insurance is a type of insurance purchased by employers for the coverage of employment-related injuries and illnesses. It is a state-mandated program consisting of payments that are made to an employee who is injured or disabled in connection with work. It is required and varies slightly by state, as every individual state has its own workers’ compensation insurance program. In Florida, the Division of Workers’ Compensation site attempts to ensure that anyone interested or involved in the Florida workers’ compensation system has the tools and resources they need to participate. The site assists injured workers, employers, health care providers, and insurers in following the Florida Workers’ Compensation Rules and Laws.

In most situations, injured employees receive workers’ compensation insurance, no matter who was at fault for the injury. Because these workers’ comp benefits act as a type of insurance, they keep the employee from suing his or her employer for the injuries covered. It is designed to cover injuries that result from employees or employers carelessness.

Situations That Are Covered

It should be noted that workers’ compensation benefits DO NOT cover pain and suffering. Rather they cover tangible expenses including: medical care from the injury or illness, replacement income, costs for retraining, compensation for any permanent injuries, and benefits to survivors of workers who are killed on the job.

The range of injuries and situations covered is broad, but there are limits. Not ALL problems that occur in the workplace are covered. Coverage may be denied in situations involving: injuries caused by intoxication or drugs, self-inflicted injuries, injuries from a fight started by the employee, injuries resulting from horseplay or violation of company policy, felony-related injuries, injuries an employee suffers off the job, or injuries claimed after an employee is terminated or laid off.

Who Receives Worker’s Comp

Most types of employees are covered by workers’ compensation insurance. However, there are some exceptions. States commonly exclude some workers from coverage, such as: independent contractors, business owners, volunteers, employees of private homes, farmers and farmhands, maritime employees, railroad employees, and casual workers.

Dollars and Cents

As a general rule, an employee who is temporarily unable to work will usually receive temporary disability payments of two-thirds of the employee’s average wage, up to a fixed amount set by law. An employee who becomes permanently unable to do the work he or she was doing prior to the injury, or unable to work at all, may be eligible for long-term or lump-sum benefits for permanent disability. The workers’ compensation system also pays death benefits to surviving dependents of workers who pass away from work-related injuries. The eligibility for wage replacement begins immediately after a few days of work are missed because of a particular injury or illness.

If it is the best fit for your situation, Workers’ Comp can be a huge help during a very difficult circumstance.  You might need help navigating the legal end of it if you don’t understand the insurance company’s approval of the workers’ compensation claim or if you disagree with the doctor’s perception of your injury – for example, if you feel more ill or injured than the doctor thinks you are.

Protecting your business name, key phrases, symbols and products at the State level is affordable and helps prevent other entrepreneurs from monopolizing on your groundbreaking business concepts. At the Federal level, trademarking your logo will protect the image associated with the products and registering the mark and/or domain name with United States Patent and Trademark Office (USPTO) is an extra layer of protection that will identify your mark as a source of the product. While Federal protection is more of an investment, the registration does not expire if all filing requirements are satisfied.

Intellectual Property theft is a growing threat, especially in areas of digital technologies, and is costing U.S. businesses billions of dollars each year. Protecting your ideas, creative expressions and preventing product infringement should be high on the small business owner’s list of priorities. Many small businesses are targeted specifically due to their inability to respond legally.

Trademarking the standard characters of your business entity is fairly simple and the return on the investment is invaluable. As a business owner, you should consider your options to protect, manage and enforce your intellectual property rights in order to get the best possible commercial results from its ownership.

Before you are Sued

Often times, before being sued you will receive a demand letter. A demand letter is a formal notice demanding that the recipient performs an alleged legal obligation such as rectifying some identified problem, paying a sum of money or acting on a contractual commitment. Most demand letters will include a deadline for action. Demand letters are not actually lawsuits. At this stage, you should consult your lawyer in order to decide how to respond. At times, you may be able to show the writer that you did nothing wrong or you may be able to reach a settlement agreement. By taking these necessary measures, you could avoid being sued all together.

Once a Formal Complaint Has Been Filed

If the matter is not resolved through a demand letter or settlement, you will receive a formal complaint. A formal complaint can be delivered by a sheriff, mailed to your company or given to whomever your company indicated as the “agent for service of process.” Accompanied with the complaint is a “summons.” A summons indicates that you have been sued, states the claims being made, tells you how long you have to respond, and identifies the appropriate court.

The following is a list of steps you should consider in response to the summons:

  • Call your lawyer. Speak with your lawyer before you attempt to contact parties or witnesses, solicit advice from any non-lawyers, or respond to the legal action. Be honest with your lawyer and collect all relevant documents.
  • Refrain from discussing the issue with anyone other than your lawyer. Do not speak with the opposing party under any circumstances, and do not provide a recorded statement without your attorney’s consent.
  • Review the Papers Promptly and Act Quickly. In most courts, you are only allotted 20 – 30 days to respond to a complaint. A hearing can sometimes be set within of 3 – 10 days. A lawyer will need the time to learn the facts and prepare a response. Putting it off or ignoring the complaint can be costly. Failure to file an answer to the lawsuit within the time allotted can lead to a default judgment against your business. A default judgment can award the plaintiff full damages sought in the complaint, and force you to make payments to satisfy the judgment promptly.
  • Notify your insurance company. Because defending lawsuit can be very expensive, it is important to verify your business and homeowner’s insurance. Check your current and older policies. Confirm that you are covered by the insurance of a trade association, your landlord, or policies brought by suppliers, vendors or others that may consider your company insured. Converse with your lawyer and insurance agent to find out what kind of insurance you possess so that you can obtain help to resolve your claim.

In our culture, it’s just a reality that every business owner has a high likelihood of being sued at some point. Taking these actions can help ease the tension of being sued and help you obtain the best result.

However, in our increasingly mobile world, hiring isn’t just a matter of finding the right employee. Whether virtual or on-site, sometimes an independent contractor is a better fit for the job at hand.

What’s the difference? According to Bankrate’s site, the difference is based primarily on the degree of control and independence over the work.

“An employee typically performs duties dictated or controlled by others. In many cases, an employee is provided training [and necessary tools] to do the job. And an employee works for only one boss.

“An independent contractor, on the other hand, generally has several clients. A contractor has his or her own tools (and in the modern workforce, this means digital devices, not just hammers and wrenches) and sets his or her own hours. And a contractor invoices for the completed work.”

Hiring an independent contractor can be a good fit if the job at hand requires a specialized skill that the company lacks or the business owner doesn’t plan to specialize in. It can also be a good idea for a short term project or a busy season. If a small business needs to save on labor costs, this option can also be a good way to go. An employer doesn’t need to pay benefits for contractors. Additionally, companies can save on taxes because it’s not necessary to pay the employer portion of Social Security, Medicare or state unemployment.

However, it’s important to understand and abide by the classification difference. It’s never a good idea to hire a contractor just to avoid the tax implications when you actually need/want an employee. If your company improperly hires a contractor when it should hire an employee, it is the business that will bear any compliance burdens and potential punishments. The IRS can come after your company when it discovers the misclassification and collect unpaid employment taxes. If you hire an independent contractor, you will need to file a 1099 if you pay him or her more than $600/year.

When is it time to hire an employee instead of a contractor? According to Raymond Grainger’s article on Entrepreneur, “The decision to hire full-time employees doesn’t have anything to do with the size of the organization as much as its profit margins. If the billable time of current full-time employees is at or above 85 percent and the profit margins are at least 50 percent, those are good indicators that the company is ready to add another full-time employee. A company makes less of a profit margin on contractors, so it’s important to factor in their workload.”

By Grainger’s reasoning, if these numbers aren’t being reached, the company is better off keeping its costs variable (by using contractors) until the firm can reach these margins.

Sourcing quality talent through independent contractors can be a good strategy for business owners. It’s just important to understand the ways they are different from employees and to use each classification well. Whether you’re hiring an employee who is going to be with you as a long-term investment or you’re working with a specialized contractor, there’s great value in knowing where the best talent is and how to manage it.

Benefits of Using Accounting Software

In the accounting world, there are a lot of software choices that can make or break any business. Some software stands out from most choices, however. Good accounting software is highly beneficial to a business, and enables accountants to help the businesses they represent in a number of ways. There are a few programs offered by accounting solutions, each of which is affordable, easy to use, and allow for significant transparency in finances.

Adaptable

One of the most useful parts of some accounting programs is that each one is adaptable to the business using it. Often, accounting software is created with general usage in mind, so that they can be useful in some way to most kinds of business. However, this means that they will include many features that are entirely useless or unnecessary for the company they are bought for. More intuitive software, on the other hand, is built from different parts or modules. The result is an accounting program that is tailor-made for the company it is bought for and it is easily adaptable to changing marketplaces. This also means that companies only pay for what they will use, and they can end up paying less for it.

Efficient and Easy

Top accounting software is put together in a very simple way that is easy to learn and operate; It takes nearly no time to learn how to use this software. This saves businesses time that would otherwise have been spent by accountants needing to learn their new software, and money that would otherwise have been spent covering likely mistakes due to unfamiliarity. Accounting software also allows for very easy data storage, so day-to-day occurrences can be checked easily and quickly. Despite the simplicity of the programs, accountants are able to be highly efficient. The software is able to perform tasks such as predicting spending patterns based on invoices while remaining versatile, fast, and easy to use.

Versatility

Possibly the most important factor of the program is that accounting software helps businesses in more ways than simple accounting. Some accounting software, being as unique as it is, is able to perform tasks that most other software can’t. For example, it is able to examine spending trends, commitments, and project budgets so that it can warn and advise project managers when they are approaching budget limits. It can file business taxes and generate financial reporting and data. This means you can manage financial operations anywhere on the globe. In essence, the software is its own manager, not entirely unlike having an extra accountant who can monitor entire projects with a guaranteed efficiency (and high work ethic).

From www.sme-blog.com to The Small Business Blog

Taxes Bankruptcy

Tax time certainly isn’t the most exciting part of running your own small business. In fact, for most business owners, bookkeeping, in general, is a necessary evil. Keeping receipts, tracking expenses, and knowing tax law is probably NOT the thing that drives you.

But, it needs to be done. And it needs to be done well. If tax season is typically a stressor for you, a little planning and effort might help your tax return go smoothly – even this close to April 15th.  Here are a few tips for you to consider.


Don’t fail to file.
Find out exactly what paperwork you need to file for your specific type of business. Keep your receipts, invoices, bank statements and other documents organized in case you ever get audited. If you need to backtrack to find your documents and get caught up, do it now. Don’t wait another second!
Do keep simple records of earnings and expenditures. Bookkeeping can be a very basic system: money in and money out. You can keep a spreadsheet or even just a ledger book. However, we strongly recommend an online accounting software package such as QuickBooks, FreshBooks, Wave or Zoho.  With little to no investment, such a program can save you hours in time, and make your accountant’s life easier at year end. (Online reviews like this one will help you choose a software that works best for you.) No matter what method you use, you will need to break down how you spent and earned in order to get the information the IRS needs.
Don’t forget to claim for the costs incurred as a result of setting up your business, such as company formation costs or any equipment you may have purchased.
Do make sure you claim all the allowances you and your business are entitled to. These include everything from capital expenditures to claiming help with your business rates. If you are running a business from home, check into claiming expenses for a proportion of your home-related costs.
Don’t blend business and personal. Keep business expenses, income and accounts separate from all personal finances to avoid confusion.

Do consider hiring a good accountant. This might be our best piece of tax advice! A good accountant might become your most important advisor, and could even save you money in the long run. At this late date, you might be in a little bit of a crunch but consider these qualities in an accountant (as taken from the FedEx Small Business Center site):

  • Choose someone who is responsive and timely. A good indication of their responsiveness? How quickly they return your call or email. You want to be on their priority list, not their back burner.
  • Ask around for a personal referral. If a friend or family member endorses an accounting professional, odds are you’ll be in good hands.
  • Look for someone with experience in your industry. Many accountants specialize in a particular field. If you own a business, choose an accounting professional who understands your work.
  • Find one who’s right for you, personally. Like in picking a doctor or dentist, subjective preferences play a role. You’ll be forming a long-term relationship with this person, so if your communication skills clash, keep looking.
If tax time was a bit of a scramble for you this year, we’d encourage you to plan ahead and develop some good recordkeeping habits now in anticipation of next year. Stay up-to-date by reconciling bank accounts, updating your accounting system and maintaining your books so they’re current and accurate when you need them. Just 30 minutes a week can make all the difference when tax times rolls around next year.

 

Is a franchise right for me

More and more people are looking to set up their own business, especially with the economic uncertainty and lack of jobs on a global scale. But setting up a business from scratch is not for the fainthearted. One in three new businesses fail within the first three years, often leaving a trail of financial devastation in their wake – which is why so many who want to reap the benefits of running their own business opt for the tried and tested franchise route. Well-known business models and familiar household names ensure that the franchise option for new business start-ups is a long-established and accepted path. Starting a business under a well-known and proven brand stands a greater chance of succeeding, than starting up from scratch.

The real estate market however is still buoyant – certainly in the estate arena at least. But owning an estate agent franchise is by no means a quick path to riches, and if you choose this franchise option, you will need to be energetic, motivated, a great communicator and possess real commercial tenacity to make it work for you – A successful business in real estate is as much about being good with people as it is about being good at sales – and you have to love both!

These days you don’t even need a high street base. Running your business online is becoming increasingly more viable, and the internet has taken its place in our lives as the oracle of all things real-estate. You can have a virtual shop, you can exchange virtual money, you can talk via email, Skype or text, pay by PayPal, you can take credit card payments with your mobile and conference call prospective tenants and landlords as long as you have a computer, broadband and a web-cam! Paperwork is paperless and the whole way we run and operate business has changed beyond all recognition.

Running a business without doubt requires the same, if not more commitment as you would apply to a job as a simple employee, but the difference is that you can, within reason, choose your own hours to fit around other commitments such as family or other jobs for example.

The private estate industry is growing exponentially, with fewer and fewer people able to buy their own properties turning to the rental market, so if you are willing to get your hands dirty and muck in wherever your business needs it, you’re keen to try new approaches, and to take on new challenges and have a great attention to detail your business will do well.

Source from www.sme-blog.com to The Small Business Blog