When opening a business, most owners are excited to get the business off the ground and running. However, as most have become aware, how the company is setup legally will be important in protecting the business owners. With this being said, many have considered using a fictitious name or DBA (doing business as) to start a business. Some consider using a fictitious name or DBA as a fast and cheap approach to get the business going with a more formal setup of the company occurring later. The thought process behind using a fictitious name or DBA over a formally structured…Read More
One should obtain professional legal assistance for either drafting or reviewing every contract they enter, but commercial leases are particularly important. Commercial leases will benefit or burden a tenant for the length of lease term depending on what is included in the lease and how it is drafted. Here are a few special legal features SG Law Group points out to its clients that you should consider when discussing commercial leases. First, commercial leases do not contain the various protections that are included residential lease because commercial landlords are not required to include them (i.e., there is no duty to…Read More
Residential leases can be complicated. Residential leases contain conditions such as what the renter can do with the home as well as who can be in the home. Other examples of clauses within a residential lease include renters requiring prior written consent before altering the home, either verbally or in writing. The reason for these conditions is because of the additional burden on the property. Landlords want to limit damage and liability on themselves. Therefore, many of these clauses are set forth to protect the landlord. However, some clauses may not be necessary and may be overly burdensome to the…Read More
Why Reviewing Your Lease? A Lease Review is something to really think about. Entering into lease agreement can be both exciting and nerve-racking for both sides. Are you getting a good deal? What should I do to make sure the tenants are good? Is the property safe? These are just some of the questions that may be going through your mind. Well, there is a solution to this issue. However, it is important to at least follow these steps before signing a lease. As a tenant, you want to inspect the home before signing. During the inspection, make sure to…Read More
What Is A Security Deposit? Many of us have heard the term security deposit and know it has to do with renting. However, there are some rules regarding security deposits that you should be aware of. First, the purpose of security deposits is to repair the property for damage caused to the property after the tenant leaves. Now, wear and tear on a property is not to be repaired using the security deposit. This is generally the sole financial responsibility of the landlord. Second, security deposits are not advance rent and should not be used as rent. Rent is for…Read More
So, you have a valid contract with all the essential terms in it. You expect everything to work out fine but the other party is not living up to your expectations and, most importantly, their part of the deal. What options do you have? Well, being in this situation can be stressful as most individuals would just want the deal to go through and not have to fight. However, sometimes you may have to do the very thing you are not interested in doing. In this case… assert your rights in the contract. So, How should I Enforce a Contract?…Read More
Contractors vs. Employees Contractors can be a better option because it saves the employer in costs. An independent contractor typically operates under his/her own business name and supplies their own materials, therefore, saving the employer in labor and material costs. Employers also don’t withhold taxes from payments to independent contractors. Hiring an independent contractor vs. an employee also means less liability for the employer. If anything happens, the liability is on the business that the contractor works for. Full-time employees are a better option if the employer wants someone to work for them long-term, or wants the employee’s sole focus…Read More
What Protections Do LLC’s Offer? The most effective way for business owners to protect their personal assets is for them to file as a corporation or LLC. By filing as a corporation, there is no personal liability for any debts, breaches of contract, or personal injuries that may be caused by the corporation, its employees, or agents. In a limited partnership, there is no personal liability for the debts and obligations of the partnership beyond what that partner has personally contributed to the business.In contrast, in a general partnership, both partners are liable for whatever debts the business, or the…Read More
Avoid is hiring people that you know and assuming nothing can go wrong. In order to be successful, you should hire people who are best suited and have expertise in their designated role. Avoid taking your family members or friends and try to fit them into a role that they may not be suited for. By hiring people you trust, you may think that having them sign contracts such as a non-compete or confidentiality agreements are unnecessary. However, just because you are on good terms now does not mean that things will not change in the future. If a family…Read More
Crowdfunding Is A New Way. Crowdfunding is a new way for small businesses to raise funding in a fairly quick manner. The business must post their idea on an approved crowdfunding portal, such as kickstarter.com. Some advantages of crowdfunding are that anyone can donate almost any amount, large or small, to any business or project that they believe is a good idea. The company has to disclose their idea on the crowdfunding website, and set a goal. However, there are several disadvantages to crowdfunding. By law, businesses are limited to raising a total amount of $1 million through crowdfunding. Individuals…Read More
