Know the Legal Difference Between an Employee and an Independent Contractor

Over the past few years, the IRS has increased enforcement against employers that misclassify employees as independent contractors, leading to fines and penalties for companies that fail to make the important distinction between the two. There are three characteristics the IRS uses to distinguish between an employee and an independent contractor: Behavioral control – the […]

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Key Terms That Should be Included in an Independent Contractor Agreement

One of the most common issues facing small businesses is how to govern relationships with independent contractors.   Which is not really surprising, since many small businesses use independent contractors to perform critical work functions like website development, marketing, bookkeeping and other important functions that keep your business functioning and growing. To protect your company’s future, […]

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How to Avoid a Legal Hangover from a Holiday Office Party

Holiday parties that had fallen victim to the economic recession are now back at many offices across the country, and are a wonderful way to show your appreciation for your employees and their hard work during the year. However, business owners are also wary of hosting parties that could leave them with a legal hangover. […]

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Conducting Business Negotiations Via Email: Good Idea or Bad?

Only the most seasoned veterans remember the days when business correspondence involved paper and ink. Today, almost all business is conducted via email, including negotiating for goods and services. Over the past decade, courts have typically held that emails can be enforceable contracts, even if the purpose for the communication was merely casual negotiation.   Therefore, […]

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Family Business Succession Planning Issues

If you have a family business that you wish to leave to heirs after you retire or die, then it is imperative that you tackle the task of business succession planning — especially if you have a blended family or if there will be multiple generations involved. Some of the key planning issues you will […]

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Factors in Choosing an LLC Over a Sole Proprietorship

As a business owner, choosing the entity structure for your new venture is one of the most important decisions you will ever make. There are both tax and legal consequences to each different entity type, and examining the pros and cons of each before making a final decision is a smart move. If you are […]

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Are Verbal Agreements Legally Enforceable Contracts?

Many people mistakenly believe that verbal agreements are unenforceable in a court of law, and have found to their dismay that this is not always the case. Under the statute of frauds, there are certain agreements that must be in writing, including those involving marriage, real property transactions, and the sale of goods with a […]

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The Corporate Decisions That Must be Documented

Corporation owners are required to maintain corporate records, including documenting major corporate decisions, as well as hold meetings of shareholders and Board of Directors. If these formalities are neglected and the company has legal problems, shareholders could be held personally liable for corporate liabilities if a court finds the proper formalities were not followed and […]

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Top 5 Misconceptions About Business Incorporation

If you are in the process of starting a new business, deciding on whether or not to incorporate that business can have long-term consequences when it comes to taxation and personal liability protection. This is why it is important to separate myth from fact about business incorporation; here are five common misconceptions: Incorporation allows businesses […]

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Factors in Choosing a C Corporation Over an LLC

The decision on how to incorporate a new business is one of the most crucial any business owner will ever make. To make the right choice, a business owner needs to consider his or her goals — business, personal, and financial — as well as future interests. Generally, business owners who choose an LLC structure […]

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