The Longa Law Firm, providing high quality and personal legal service to individuals and businesses.

Business Basics

Hire an Attorney, Avoid Litigation, and Gain Peace of Mind

The best practice to avoid disputes and litigation is to put every agreement in writing, whether it is with another business or an individual. Some contracts are required by law to be in writing under the Statute of Frauds. While it may be legal to have an oral “handshake” contract, the problem lies in trying to enforce that contract in a court of law against a breaching party. Such a case turns into a he said/she said debate without any proof of what the terms are. If you put the agreement in writing, either side will be able to prove the existence of the contract and its terms.

If you hire an attorney to draft your business contracts, the attorney can help you negotiate the best terms for your agreement and ensure that your agreement is enforceable. I have experience helping clients with the following types of business contacts: Independent Contractor Agreements, Employment Agreements, Event Planning Agreements, Wedding Planner Agreements, Service Agreements, Operating Agreements, Confidentiality Agreements, Non-compete Agreements, Sales Agreements, and Lease Agreements. I use my education and skills to draft and/or negotiate the best terms for your contract and explain important concepts, helping my clients to avoid litigation and gain peace of mind.

Feel free to send me your questions with the mail link to the right or schedule an initial consultation.

Choose the Best Business Structure

It is important to carefully consider which business structure will be best for your business. There are advantages and disadvantages to each form of ownership. Here is a brief description of each structure:

· Sole Proprietorship: Sole proprietors do not have to file formation documents with the state. They own all of the assets of the business and all of the profits, which they report on their own personal tax return. They have unlimited personal liability for the debts or obligations that the business incurs (but note that there is a Homestead exemption in Florida).

· Partnership: A partnership consists of two or more people who share ownership and profits. The profits flow directly to the partners’ personal tax returns. Partners are jointly and individually liable for the actions of their partners or the partnership. The partners should enter into a legal agreement to establish management, dispute, and dissolution or withdrawal procedures. Limited Partnerships must file with the Department of State.

· Corporation: A corporation is its own separate entity that can sue and be sued, borrow money, or incur debt. It offers a limitation of liability for shareholders, easy transfer of ownership, and access to capital through sales of shares. To create a corporation, you must file articles of incorporation with the state’s division of corporations. Corporations are also monitored by federal, state and some local agencies, so there may also be additional taxes or licenses that are required from these agencies. While corporate taxation deters many people from establishing a corporation, small businesses that meet the requirements can elect Subchapter S corporate status, which allows shareholders to report corporate income on their personal returns in proportion to their ownership.

· Limited Liability Company: A LLC is a business structure that allows limited liability like a corporation, but federal taxation like a partnership. The owners are members and articles of organization must be filed with the state to create a LLC. On the federal level, LLCs with only one member are considered sole proprietors unless they elect to be classified as a corporation.

For a detailed consultation to determine which business structure is best for you, please contact me or call 866-225-4214. You may also want to speak with an accountant or get additional information from the IRS regarding the tax implications of various structures.

CONTACT

To schedule a consultation, please click here or call (866) 225-4214. I provide a free initial telephone consultation.

Disclaimer: This page contains general information and should not substitute the advice of qualified legal counsel. The information provided here should neither be construed as legal advice nor the formation of an attorney-client relationship. An attorney-client relationship does not exist unless a retainer agreement has been signed by the client and attorney.

Longa Law Firm, P.A.

Toll Free: 866-225-4214