TNNWC Publications And Informational Products Division publishes The National Networker (TNNWC) Weekly Newsletter and The BLUE TUESDAY Report especially for entrepreneurs and early-stage venturers; free weekly subscriptions to these informative publications are available online to all entrepreneurial Members of TNNWC.

Membership in TNNWC is free (it's automatic for any subscriber to any TNNWC Publication) and available at our website. When you arrive there, just click on any of the JOIN US or BECOME a MEMBER buttons or links.

Friday, August 05, 2011

Top Ten Legal Concerns Business Owners Should Know | CEO SPACE

You're a busy business owner wearing many hats - you're always marketing your business, constantly trying to secure clients and collect your fee for services rendered or products delivered. You know the importance of having your legal affairs in order, but there aren't enough hours in the day to do it all, or perhaps there isn't enough money to pay a professional to handle those matters.

Many entrepreneurs and business owners face this challenge. But it is crucial to address certain legal concerns so that you can remain in business and do so successfully. Here are top concerns you need to know and address... right now! This is not a comprehensive list, and all may not apply to you, but they are general concerns to be considered.

1. Choosing the Right Business Structure. There are four (4) basic structures - the sole proprietorship, general partnership, corporation and limited liability company (LLC). The riskier your business, the more you need to shield yourself from personal liability for any debts or wrongdoings of the business. Operating your business as a sole proprietorship or general partnership means that you may be personally responsible for claims brought against your business or for paying its debts. One lawsuit could destroy your business. Carefully consider the pros and cons of each structure and determine which one works best for your business.

2. The importance of good legal record keeping. Maintaining good records is a must, particularly with a corporation which is legally required to keep strict records of meetings and other actions required to be taken by its Board of Directors or shareholders. The failure of a corporation to keep adequate records could mean that its "corporate veil" is "pierced" and essentially the corporate status is negated. A third party bringing an action against the corporation may be successful in attacking the personal assets of the shareholders, and in some cases, those of the directors or officers.

3. Entering into Formal Agreements with Co-Owners. So many people are in business with others - family members, close friends or business associates and without a formal agreement. This is a MUST, regardless of the relationship. The reality is that business relationships don't always go as planned and owners may need to 'divorce.'. Without an agreement which makes it clear as to the ownership interest each person has, how and if interests may be transferred, the duties of each owner and terms of any non-compete clause, the departure of an owner or dissolution of the business can be difficult and costly.

4. Entering into Formal Agreement with Third Parties. Failing to document business arrangements in writing has been the downfall of many businesses. Common agreements include (i) consulting agreements with agents acting on behalf of the business; (ii) employment agreements for key officers; and (iii) non-disclosure agreements to preclude third parties from disclosing confidential information about your company. Also consider agreements that prohibit consultants or employees from competing against the business and/or soliciting agents or employees of the business (or include such provisions in an existing consulting or employment agreement). Without a non-compete or non-solicitation agreement or provision, a business could lose a significant of business to someone who has gained knowledge of your business and the specific industry and then snatched your clients and trusted employees/agents.

5. Labor and employment. In order to avoid issues with the Internal Revenue Service (IRS), be clear as to whether someone working for you needs to be classified as an employee, or whether they are a consultant. The general test is whether the person is instructed by the company as to when, where and how to work. In some cases, the IRS has fined a company for not properly classifying a worker as an employee and back employment taxes are imposed, resulting in a great financial burden for the business. The possibility also exists that a claim may be brought by consultants who then maintain that they are employees and are legally entitled to certain benefits such as workmen's compensation or unemployment insurance.

6. Entering into a Commercial lease. If you operate your business outside of your home, it is best to have a written agreement to ensure business continuity. Negotiate the right lease term, rent amount, etc. Without a written agreement you run the risk of the landlord asking you to leave even if you are a good tenant, and generally with just thirty (30) days notice. This could result in a significant loss of business income - having to move could mean the loss of good clients and a serious business interruption until a new space is secured.

7. The impact of taxes on your business and its owners. The four basic business structures all have different tax consequences and could therefore affect your bottom line differently. Discuss the tax reporting of each, and how each relates to your personal financial situation, with your tax advisor.

8. Raising Capital to Grow Your Business. Many business owners seek to grow their business through equity offerings to investors. Ascertain the types of documents required to be provided to potential investors to ensure compliance with federal and state securities laws, and to ensure that proper manner of soliciting investors.

9. Buying or Selling a Business or Assets. Conduct due diligence if you decide to sell your business or a significant amount of its assets or intend to buy another business. Evaluate all problems you may inherit if you are buying a business, such as pending lawsuits or outstanding debt.

10. Protecting Intellectual Property. If your business uses a trademark or service mark, protect it against all others by filing an application with the U.S. Patent and Trademark Office. Similarly, confirm that you are not using a name that legally belongs to someone else, which could mean infringement, and a successful lawsuit brought against your company. This could be catastrophic to your business.

Article Source:

This article is not intended to provide legal advice. Always consult an attorney for legal advice for your particular situation.


Founded by Berny Dohrmann over 20 years ago, CEO Space is a private entrepreneurial business club with an environment that we created for people to be able to get quick results with their business through networking, education, and resources. Berny Dohrmann recently won the 2011 Inpex Ambassador Award for tireless contribution to inventors worldwide. For a one-time tuition payment Entrepreneurs receive a Lifetime membership and one free class, as well as a lifetime of mentoring, contacts; resources, and most of all a lifetime of support for you and your business as you grow. CEO Space is certified for Continuing Education credits. You can learn about Contracts, Government Contracts, I.T., Business Planning, Licensing, Marketing, Transformational Leadership and other topics at CEO Space.

Jacqueline J. Warner, Esq. is a seasoned attorney at the national law firm of Hinman, Howard & Kattell, LLP, in White Plains, New York with over 19 years of experience with corporate, securities, real estate, and estate planning and administration matters. Attorney Warner regularly advises clients on starting and growing their business, raising capital via private offerings and negotiating a wide array of contracts. She is the author and publisher of a book entitled The Mini Legal Toolbox for Entrepreneurs and Small Business Owners and a soon to be released second book in the The Mini Legal Toolbox series entitled Raising Capital for Your Business; Understanding Private Offerings.

The Mini Legal Toolbox Website -
Jackie The Legal Diva -

Article Source:,_Esq
Article Source:

For more information on CEO Space please visit or call CEO Space at 256.850.4700.

~ CEO Space Mall –
~ Blog – and
~ CEO Space Twitter page –!/ceospace
~ CEO Space Sovereign Nations –
~ CEO Space Super Teaching –

For complete tactical and strategic business planning, marketing, media, lead-generation, technological and capital resources, scalable solutions and tools to support every entrepreneurial start-up, young enterprise, small- to medium-sized business and emerging high-growth company, talk to the Advisors and Experts at TNNWC Group, LLC.

We are a collaborative entrepreneurial, creative organization offering you hands-on, personalized assistance in every aspect of achieving your monetization, profitability and financial sustainability objectives, domestically and globally.

We don’t just “coach” you or offer you pre-packaged, push-button solutions – we listen to you, analyze your exact needs, and work within your scale of operations and your budget to: (1) create your optimal tool kit , and (2) work as your partner (with our sleeves rolled up) to implement your plan by supporting you in the most efficient and productive use of every tool.

Visit our website, which is located at

To receive your Free Subscription to our critically- acclaimed business newsletters, publications, information bulletins and alerts, simply join us as a Member. Two of our most widely-read publications include The National Networker (TNNWC) Weekly Newsletter, and The BLUE TUESDAY Report. Every Subscriber automatically receives Free Membership.

Membership will grant you access to our unique suite of business planning, business-building, business promotion, business cost-reduction, business capitalization and strategic planning services, as well as entry to our expert management consulting services. These benefits are unequalled anywhere.

Just go to our home page, and click on the “JOIN US” button. Find out about what WE can do for YOUR growing enterprise -- we are recognized advocates, champions, thought-leaders, writers and keynote speakers on such timely subjects as social networking and relationship-building, traffic -building, social media buzz, branding, developing international trading and joint venture relationships -- and structuring and obtaining alternative forms of capitalization. We are on top of every significant business, regulatory, technological, social and consumer trend worldwide.

At TNNWC, we have a specific orientation: We Solve Problems. We Help Our Clients To Achieve Their Goals And Objectives. Prosperity. Peace. Collaboration. Sustainable Solutions For Continuous Growth™.

Subscribe. Join Us. Visit Us.

You can access our free supplemental RSS FEED by clicking *HERE*

This blog post format is Copyright © Douglas E. Castle, with all rights reserved.

About Douglas E. Castle
Forward/Share This Article With Colleagues And Social Media:

No comments:

Blog Archive

BNI News Feed

The Emergence of The Relationship Economy

The Emergence of The Relationship Economy
The Emergence of the Relationship Economy features TNNWC Founder, Adam J. Kovitz as a contributing author and contains some of his early work on The Laws of Relationship Capital. The book is available in hardcopy and e-book formats. With a forward written by Doc Searls (of Cluetrain Manifesto fame), it is considered a "must read" for anyone responsible for the strategic direction of their business. If you would like to purchase your own copy, please click the image above.


Site Credits:

Featured in Alltop
ALLTOP Business
News Wire. HOT.
Cool Javascript codes for websites  Fabulous Free Calendars

Create FREE graphics at