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Posts Tagged ‘corporation’

Choose the right legal structure for your business

June 13th, 2011

By Mark Schecter | Comments Off

Choose the right business structureChoosing a legal structure for your business can be intimidating.

There are many factors you have to take into consideration as the structure you choose can have a lasting effect on your success.

Before you make a decision, let’s review business forms that are common in Florida:

Sole Proprietorship

Are you a lone wolf in your business? If so, sole proprietorship may appeal to you. It is the most common structure used; fairly simple and inexpensive to set-up, and just as easy to dissolve.

However, sole proprietorship does not provide much protection for entrepreneurs. You can be held personally liable for business-related debts and taxes; and you cannot take advantage of the tax breaks LLC’s and corporations receive.

Partnership

A partnership is commonly used when more than one individual has ownership in a business. While it is fairly simple to set-up, it is not always as simple to dissolve.

Like a sole proprietorship, the partners can be personally liable for debts incurred by the business, taxes and other financial obligations.

Corporation

A corporation is a legal entity and unlike a partnership, it must be registered with the state of Florida.

There are two types of corporations: c-corp and s-corp.

In a c-corp, the corporation is responsible for its business debts and there is no personal liability.

In contrast, shareholders can split business debts and tax liabilities in an s-corp, and report the corporation’s income on their personal taxes.

Limited Liability Company (LLC)

An LLC is often referred to as a “hybrid” because it has elements of both partnership and corporation structures. It must be registered with the state of Florida and there can be several shareholders involved.

As for tax liability, an LLC can decide whether it wants to be taxed as a corporation or as a partnership.

Which structure is best for you?

Choosing a legal structure for your new venture is not a decision to take lightly.

How you organize the business will affect what you pay in taxes and your personal liability for the company’s financial obligations.

Consult our attorneys for help deciding which structure is best for you. Call 954-779-7009 to schedule a consultation.

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Posted in business, business organization | Comments Off

When to Hire a Lawyer for your Small Business

March 17th, 2010

By Mark Schecter | 2 Comments »

A business lawyer can play an integral role in the success of your small business.

While this is true, you do not have a lawyer on retainer and you don’t plan to hire until you are served with a lawsuit or face a legal issue.

Waiting until you have been sued to get legal help can be risky for your small business.

When you hire a business lawyer early, he/she is available to resolve many disputes before actual lawsuits are filed. He understands the in’s and out’s of your business and knows how to protect it.

This proactive approach leads to less costly dispute resolutions for all parties involved, especially for you.

To read more business related articles, subscribe to our litigation blog.

To speak with a business lawyer directly, give us a call at 954-779-7009.

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Posted in business lawyer, small business | 2 Comments »

Outsource to Contract Lawyer to Deal with Layoffs

February 11th, 2010

By Mark Schecter | No Comments »

If you follow the local and national news, you are aware of the US economy and rising unemployment rate. It’s difficult to ignore the dismal news as the topic is frequently covered in all areas of the media, from morning and afternoon talk shows, to radio and newspaper ads.

As a business owner, you constantly struggle with the thought of cutting back your costs and budget, and the possibility of having to lay off employees and add to the rising unemployment rate. But the fact remains, you are responsible for finding ways to keep your company viable while you deal with the current crisis. That means in many companies, layoffs are inevitable.

While you work hard to cut your budget and control your costs to deal with the business losses you’ve experienced, you may find you’re forced to downsize the number of employees in your company.

With that said, it’s not always simple to determine who will be laid off. While you may be able to fade out certain positions, you’ll find there are others you cannot afford to dissolve.

For instance, it may not be a good idea to completely fade out the legal services your in-house attorney provides to protect your company. In fact, it may be an absolute wrong decision as claims of wrongful termination and other employment disputes tend to increase when layoffs occur.

So, what can you do?

You can outsource to a local contract attorney many of the same legal services an in-house attorney offers. Does this mean you must completely dissolve your company’s legal department? No. But it does mean a contract lawyer can prevent you from having to hire more salaried in-house attorneys and support staff.

Although much of the news we hear focus on the loss of jobs once held by middle Americans, there are other industries that are often overlooked. The legal industry has been hard hit by the economy. It was already heavily saturated and very competitive, and the economy has only exacerbated that reality.

Now, instead of hiring more in-house salaried lawyers, many corporations hire contract attorneys to provide legal services they need. In many instances, a lawyer working on a contract basis has the same (and sometimes more) education and work experience as the typical in-house attorney.

Has your company considered outsourcing to fill in-house attorney positions following layoffs?

http://www.schecterlaw.com/litigationblog/legal-services-local-corporate-attorneys-offer

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Posted in Corporate Outsourcing, Outsourcing Trends, South Florida | No Comments »

Are We Witnessing the Demise of the Billable Hour?

November 13th, 2009

By Mark Schecter | No Comments »

For a while now, the fate of the billable hour has been in question. Corporate clients have long been expressing their concerns that the billable hour fee structure could possibly encourage corporate counsel to prolong legal matters.

With the ailing US economy, these corporate clients are finding it more imperative to set budgets for operating their companies. As they are forced to tighten their belts, small and large corporations are putting more pressure on their legal counsel and law departments to do two things – get rid of the billable hour and control their legal costs.

What would the demise of the billable hour mean for corporate counsel and their clients?

Read more to find out…

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Posted in Alternate Fee Arrangement, business, Corporation Law | No Comments »

Four Reasons Every Corporation Needs a Business Lawyer

September 21st, 2009

By Mark Schecter | 1 Comment »

business-lawyer-FloridaEvery corporation, despite its nature, size or location, can benefit from having an effective lawyer that specializes in business affairs on retainer. An experienced business lawyer can provide legal assistance at every stage of your business, from the conception and organization phase, to advising you of potential issues of liability, and defending you from frivolous claims and lawsuits that could threaten your corporation’s success.

If you do not have a business lawyer on retainer, you are not alone. Most business owners do not consider hiring a lawyer until they are faced with a specific legal problem or after they’ve been sued by another party.

An experienced and knowledgeable business lawyer can play an integral role in your corporation’s success. Here are four good reasons every corporation needs a business lawyer:

1. To assist with the start-up and organization of the corporation…

One of the best times to enlist the services of a lawyer is at or before the start-up of your business. A lawyer can help you evaluate the viability of your business idea before you invest any capital. He/she can also help you choose the best structure for your company, whether a limited liability company or corporation, and help you identify any potential liability or other legal issues you may face.

2. To keep your corporation in compliance with applicable local and federal laws…

There are laws that govern practically any and every action your corporation wishes to carry out. However, because most entrepreneurs that decide to start a corporation does so with little or no legal expertise, many corporations fail to comply with laws that are applicable to them and as a result, they face fines, lawsuits and other legal actions. A business lawyer can make sure you’re aware of the laws and regulations that are relevant to your corporation, and prevent you from taking action that will jeopardize your corporation’s success.

3. To properly advise and structure partnership agreements…

As with most business partnerships, there will be times when all parties will not agree on the operations of the business, management decisions, employees, or salaries. If you are considering starting a business with another person or entity, or entering into some type of partnership, protecting your interests should be one of your top priorities. With the help of a business lawyer, you can have a partnership agreement drafted that will layout and define each partner’s expectations. By clearly defining the roles, responsibilities and expectations of each partner, you can limit the presence of disagreements and potential conflicts.

4. To prepare ironclad business contracts…business-contract-md

An essential component of any business relationship is a written, legally-binding contract. In Florida, there are three components that must be present in a valid Florida contract. If your contract lacks any one of the three components, it may not be considered valid and enforceable. Thus, the terms of the agreement that were in place to protect you and your company, can be considered null and void, denying you the very protection you sought during preparation of the contract. A business contracts lawyer can protect you from this potential pitfall by preparing an ironclad business contract that outlines the terms of the contract and possesses each of the three elements required in the state of Florida.

As with any business endeavor, it is imperative that you put forth every effort to protect your business and non-business related interests. Waiting to hire a business lawyer can be dangerous for you and your corporation. In the event a problem arises, you can better benefit from the assistance of a lawyer that you have an existing relationship with; a lawyer that thoroughly understands the ins and outs of your corporation.

Why risk your Florida corporation’s success by foregoing a business lawyer? By hiring a Florida lawyer that specializes in business law, you are one step closer to building the successful empire you’ve dreamt of. While you focus on what you do best, your business lawyer can focus on helping you protect, defend and build your corporation.

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Posted in business, contract law | 1 Comment »