Colorado employment law is complicated, and it’s impossible for us to give a complete rundown of all the key laws. An employment law attorney such as Elizabeth Lewis can help keep your business on the right side of the law. Here are a few of the major Colorado employment laws that you need to know, either as an employee or an employer.
Wages
In 2024, the minimum wage in Colorado is $14.42 for untipped employees, and $11.40 for tipped employees. Denver minimum wage is higher than Colorado’s so for any employees providing services in Denver, the minimum wage is $18.29 for untipped employees, and $15.27 for tipped employees.
When employees meet overtime requirements, employers must pay them 1.5 times their regular pay. Overtime triggers when an employee works:
More than 40 hours in a week
More than 12 hours in a workday
More than 12 consecutive hours
Typically, this only applies to hourly employees. Provided that a salaried employee is exempt, then a salaried employee doesn’t earn overtime and may have a more difficult time managing expectations that they work additional hours each day and/or week. Salaried employees who are not exempt are still subject to overtime requirements.
Break Requirements
Employers in certain sectors (including, but not limited to, retail and service, food and beverage, commercial support services, and health and medical) must give employees a duty-free meal period of 30 minutes for every five hours worked. This break can be unpaid, but if employees have to eat while on duty or are otherwise required to be on-call, they should be paid.
A 10-minute rest break should be allowed for every four hours worked in these same industries.
Nursing mothers should be allowed to use their break time to express milk, and they should be provided with a private place (other than a toilet stall) to do so.
Leave Requirements
Colorado requires that employers give employees paid sick leave, which should accrue at a rate of at least one hour for every 30 hours worked. Employees can use this leave for many purposes, including preventive care, helping a family member, or absence due to domestic abuse, sexual assault, or harassment. Employees may also take unpaid leave (up to three days per 12 months) to deal with domestic abuse. This “sick time” is also available for bereavement leave in some instances.
There is no requirement for holiday leave or pay.
In addition, large employers and all employees (regardless of the size of the company they work for) must contribute to Colorado’s Family and Medical Leave Insurance Program (FAMLI).
Colorado Anti-Discrimination Laws
In addition to Federal anti-discrimination laws, Colorado bans discrimination on the basis of lawful activity outside of work, AIDS/HIV status, arrest or sealed convictions, marriage to a co-employee, bad credit, or wage garnishment for debt.
“Chance to Compete” Law
Similar to anti-discrimination laws, Colorado wants to help convicted criminals avoid discrimination in the early parts of the application process.
An employer may not advertise that people cannot apply for a position if they’re not convicted, nor may they ask for a conviction record on an initial application. (This doesn’t apply to specific positions where a person with a criminal history cannot hold the position.)
Record-Keeping Laws
Colorado law requires employers to maintain records of employees and wage payments for one, two, or three years, depending on the specific type of records.
Access to Personnel Files
Personnel files are not just for HR – each employee is entitled to view their own personnel files in Colorado. This includes viewing information about discipline records, and whether an employee is being considered for advancement. This only applies to written records – employers don’t have to tell employees about conversations regarding them where no formal notes are made.
Whistleblower Protection Laws
Employers cannot retaliate against employees for speaking out if they think people at work are committing crimes. This includes the waste or misuse of public funds if a company gets payments from the state.
Wage Discussion Laws
In Colorado, employees are free to talk about their compensation. Employers cannot ban discussion of wages, nor can they retaliate against workers who share their salary information with others.
Workers’ Compensation
In Colorado, most employers are required to maintain workers’ compensation insurance that pays for medical bills and lost wages in the event that an employee is injured on the job. The level of coverage required depends on the size and nature of the workplace.
Final Paycheck Requirements
When an employer fires an employee, they must provide a final paycheck for hours worked within six hours of firing. If the payroll office is closed at the time of the firing, the employer has until six hours into the next workday.
Labor Peace Laws
Colorado’s Labor Peace Act means that employees can’t generally be forced to join a union or pay union dues. However, they will still get benefits, such as higher wages, that the company extends because of union negotiations and settlements.
Don’t Run Afoul of Labor Laws in Colorado
Colorado labor laws are complicated, and it’s easy for an employer to find themselves on the wrong side of the law if they’re not careful. Working with an employment law attorney when starting your business or adding employees can help you avoid legal problems.
Since 2007, small business lawyer Elizabeth Lewis has been helping businesses in Colorado to comply with the complicated web of legal requirements, including federal laws, Colorado laws, and even local employment laws. She can help you write employment agreements that define the employer-employee relationship to avoid legal issues in the future.
Elizabeth also believes it’s important to form long-term relationships with her clients so she can be available to help whenever new problems arise. This can help you deal with changing laws or respond to new situations that come up with your employees.
To learn how a business attorney can help your company navigate the complex rules of employment law, please contact the Law Office of E. C. Lewis today for a free consultation. We serve small and medium sized businesses in Denver and throughout Colorado.
Your business’ contracts are tools for defining what is expected of different parties in a commercial relationship. Common contracts exist between employers and employees, between suppliers and buyers, and with independent contractors.
Disputes about the terms of a contract are almost inevitable. Some people think this is a drawback of contracts, but it’s actually evidence of their strength. If there were never any disagreements about how parties should operate, there would be no need for contracts in the first place. Contracts define what is expected of each party, and there are effective ways to resolve these disputes, often without souring the relationship that existed before the dispute. A contract law attorney can help direct you through some different strategies to resolve contract disputes.
Informal Complaint and Negotiation
A contract dispute starts when one party points out to the other party that the terms of the contract aren’t being fulfilled. For example, a contractor might say to the company that hired them that they haven’t been paid on time or in the amount specified in the contract. Or a company might believe that their landlord isn’t providing the services required under their lease.
The next step is an informal negotiation. For example, the contracting company might tell a contractor that they will pay them immediately, or, perhaps, ask for a little more time to pay. The landlord may agree to provide snow removal in a more timely manner. If these resolutions are satisfactory, the contract dispute is settled.
However, if parties don’t accept these resolutions, parties may seek to escalate the dispute.
Escalation and Formal Negotiation
During this stage, the parties to a dispute will typically put their complaints in writing. The written complaints will typically include the terms in the contract that have supposedly been broken, how the wronged party wants to have these terms made right, and what they will do if they are not made right.
If parties haven’t consulted with their business lawyers before this point, this is the time to get lawyers involved. Talking to your contract law attorney can help you understand what recourses you have under the terms of the contract, and what level of negotiation you can enter into without affecting your ability to get compensation from other dispute resolution tools, such as arbitration and litigation.
Consulting with your lawyer can also help you avoid trouble for yourself by violating other terms of the contract inadvertently. Most importantly, talking to a business attorney can help you understand whether the contract dispute involves a minor breach that you can patch over, or a material breach that may make it impossible to continue under the current terms.
Formal negotiations can involve whoever the parties agree should be present, including the use of experts and mediators to try to resolve the dispute. Sometimes, though, the contract may put explicit limits on this stage of negotiation. Often, formal negotiations are the last chance to save a working relationship between parties in the contract. Other forms of resolution lead to increasing acrimony and may make one party feel slighted to the point that they can’t continue to work with the other.
If parties can’t resolve the dispute with formal negotiations, they will have to move to binding forms of dispute resolution, such as arbitration and litigation. Sometimes a contract will specify that disputes must be resolved with binding arbitration.
Binding Arbitration
If negotiations between parties fail to resolve contract disputes, people often seek resolution through binding arbitration. In this process, parties present evidence to a neutral third-party arbitrator who renders a binding ruling on the evidence and arguments presented. It’s similar to a trial, but it’s faster and less expensive.
Typically, once the arbitrator issues a ruling, the dispute is considered resolved.
Litigation
If parties don’t agree to arbitration, they may seek to settle their dispute through litigation. This is a lawsuit where parties file formal complaints against each other and seek to achieve restitution for wrongs related to violations of the contract.
Litigation involves multiple steps, including discovery, in which parties disclose documents related to the dispute. Before the trial, parties may file different motions to dismiss certain claims or in an attempt to conceal items from discovery.
Negotiations continue throughout the litigation process, and it’s possible for both parties to reach a settlement before going to trial.
At the end of a trial, either party has the option of appealing the decision to a higher court.
Help with Contract Disputes in Denver
If you’re a business owner, contract disputes can determine whether your business succeeds or fails. It’s important to have an experienced contract law attorney on your side to deal with these disputes when they arise.
Small business attorney Elizabeth Lewis has been helping businesses in Colorado since 2007. She focuses on helping small and medium businesses to use the law to their advantage and compete in a challenging marketplace. Alongside the importance of resolving contract disputes, she knows how important it is to maintain your professional relationships and reputation during the dispute process.
Elizabeth can help your company resolve these disputes without burning bridges along the way. Her results-oriented approach helps cut through animosity to reach a balanced resolution that satisfies everyone involved.
In addition to resolving contract disputes, Elizabeth can help you write contracts that prevent or minimize disputes. She can also help you review contracts so you don’t accept any onerous terms that could impair your business.
To learn how a small business lawyer can help your business with contract disputes, please contact the Law Office of E. C. Lewis today for a free initial consultation. We serve small and medium sized businesses in Denver and throughout Colorado.
Almost nobody starts a business in order to have more encounters with the law. Unfortunately, that’s one of the biggest effects of having your own business – you encounter more legal issues than you did before.
You might not think your business is the kind that will run into legal issues, but if you look at the list below, you will see that almost every business is likely to encounter some type of legal issue over time.
Choosing a Business Structure
Choosing a business structure is likely the first legal issue your business will face.
On the one hand, you might think it’s easiest and simplest to just be a sole proprietorship, but doing so might put your personal property at risk. Your car, your home and your other valuable assets all become vulnerable in the event of a business lawsuit or your business’ outstanding debts.
During business formation, you should consider business structures that will protect your personal property. While you’re at it, you should consider what might be most favorable from a tax perspective, and which structure best suits the way you imagine operating your business.
Trademarks and Intellectual Property Protection
Many people decide to start a business because they have a brilliant idea. Perhaps it’s a product design. Maybe it’s a bit of software that does something more effectively than other code that’s out there. It could even be a unique ice cream recipe that you dreamt up one day.
Whatever your intellectual property is, the odds are that it’s the most valuable thing your business will ever own. You know that you wouldn’t leave your store’s doors unlocked and open all night, but not taking steps to protect your IP can cost your business far more than any physical robbery.
Employment Law Issues
Once your business gets too big for you to do all the work yourself, you’re going to need employees. With employees comes employment law issues. You’ll have to be prepared to deal with payment disputes, discrimination claims, workers’ compensation issues and more.
Some people think that they can just sidestep this issue by only working with independent contractors. Unfortunately, that can be a recipe for trouble, too. If you don’t fully understand the laws surrounding contractors, you can find yourself in trouble for misclassifying people who are truly employees as independent contractors.
Regulatory Compliance
Another big legal issue your business is going to face is regulatory compliance. Almost every business is governed by numerous overlapping regulatory agencies, and you must comply with a variety of local, state, and federal laws. Violating any of these regulations can cost your business dearly (and lead to a loss of personal property if you didn’t take steps to protect it).
Deciding When You Need a Contract
You might be a “My word is my bond” kind of person who never needs more than a handshake to compel you to live up to your promises. Unfortunately, many people do not operate that way in the modern economy. If you don’t have a contract to compel someone to live up to their promises, you will find yourself without payment, without supplies, and without a recourse to be made whole from the party that didn’t fulfill their end of the deal.
Keep in mind that contracts aren’t just for enforcing promises. They serve to clarify what exactly each party is agreeing to. A contract can keep you from accidentally overpromising or overdelivering in ways that can cost your business.
Product or Service Liability
Whenever you provide a product or service to someone, you are exposing yourself to potential liability if that person believes that what you delivered is faulty in some way. If they believe that the fault led to injury, property damage, or other costs, they might try to recover those costs from you.
It’s important to consider what potential liability your business is exposed to, then work to protect yourself from it. Using a contract to spell out your liability is one powerful strategy. You also need to understand the regulatory framework your business operates within, because not complying with regulatory requirements can expose you to greater liability.
Obtaining Business Real Estate
After your IP, real estate is likely going to be your business’ most valuable asset. The decision of whether to buy or lease real estate is a big one for your business, and it depends on a variety of factors, not the least of which are the terms you are able to obtain for a lease. Leases can contain many restrictive terms that will affect your business’ operations now and in the future.
A lease is a contract, and it’s important to have this contract reviewed by a lawyer before signing. Having a lawyer review your lease and negotiate terms can save your business a considerable amount of money while giving you flexibility to meet your current and future needs.
Let the Law Office of E.C. Lewis Handle Your Legal Issues
As a business owner, you’ve already got more work than you can handle. You need all the hours in the day to handle the actual running of your business. You don’t have time to devote to dealing with these legal issues. Plus, your business is the work you’re skilled in. You likely know little about the law, which can lead to costly mistakes. Instead of wasting time and money trying to handle legal issues, have a small business lawyer handle those issues for you.
Elizabeth Lewis is an experienced business attorney. Since 2007, she has been helping many small and medium businesses in Denver and across Colorado to deal with these and other common legal issues. She’s dedicated to the success of her clients, and she can help you successfully found your company and navigate it through the difficult early growth stages.
To learn whether Elizabeth is the right lawyer for your business, please contact us today for a consultation.
As a business owner, you are responsible for complying with numerous regulations, have countless expenses, and are juggling several roles in your business structure. You are often rushing through your day, and it can be hard to identify scams that sound like (or are related to) real requirements for your business. Scammers make it seem as if you have to pay them or else you’re breaking the law.
Here are some of the more common scams we see and how to avoid paying the scammers to keep your business in compliance.
Labor Posters
Compliance with employment laws includes posting certain information in areas visible to employees. So when someone calls or sends you an official looking notice by mail and tells you that you have to buy their posters to be in compliance, it can be hard to say no. Plus, the cost isn’t that bad. These posters range from $10 to $50 each, plus shipping, which may be another $10.
However, there are a few problems with this. First, you can download all the required posters for free from either the Colorado Department of Labor or the US Department of Labor. Second, while you might be tempted to delegate the work of getting up-to-date labor posters to someone else, there’s no guarantee that these posters you’re paying for are actually accurate. Finally, sellers of these posters use them as an opportunity to upsell you on near-worthless additional services like compliance insurance. Once you buy their posters, you can expect to be bombarded with numerous additional sales calls, mailings, and emails.
Trademark Registration
Registering your trademark is an essential step in protecting your company’s valuable intellectual property, including software licensing. It’s not surprising that it would also be a tempting target for scammers.
Scammers will often call, email, or mail you, saying there’s a problem with your application that you must resolve immediately to avoid losing your trademark rights. Others might tell you that they can file your application or represent you, even though they’re not a lawyer. These scams can sound convincing because the scammers take information that is publicly available about your application to try to scam you. In some cases, the mail or email you may receive may even be drafted to look like it is coming from an official source.
The United States Patent and Trademark Office (USPTO) wants you to know that its employees will never ask for personal or payment information over the phone, in an email, or in a text. They also don’t want you to send payment via check or money order to third-party addresses.
If you’re getting pressured by someone to act in a way that you think is a scam, don’t engage with them. Contact the attorney handling your application or the USPTO directly or reach out to your business attorney to ensure that what you are receiving is legitimate before you turn over your hard-earned money or personal information.
Paying for EINs
You know you need an employer identification number (EIN) for tax purposes, and if you search online, you will come across numerous websites that offer to help you get an EIN for a fee. However, providing an EIN is a free service from the IRS. Note that if you use a pay service to apply for an EIN, not only will you be out the $300+ that they charge for the service, but any information you provide in the application is potentially compromised, setting you up for identity theft and other more expensive scams later.
Company Seals
Another potential scam is when people tell you that you need a company seal in order to legally do business as a corporation, LLC, or even a sole proprietor. They will likely frame this as a tiered scam: so much to file the paperwork, and wouldn’t you like to have your seal professionally designed, and here is some letterhead with your seal watermark, and don’t you want a fancy desk embosser?
There is currently no legal requirement for companies of any type to obtain a seal during business formation. If you want to have a seal, that is your choice, but you should make sure you work with a reputable company that isn’t trying to improperly charge or upsell you.
Paying for Meeting Minutes
You may get a worrying email or other notice saying that your LLC, nonprofit, or other corporation is required to file meeting minutes with the Secretary of State. The notice might tell you that because you’re delinquent, you have a substantial fee or penalty due. They might also refer you to a service that can prepare your minutes for filing.
Colorado does not require reporting entities to file meeting minutes. There is an annual report required, which you will file through the Colorado Secretary of State’s website, using their form. The cost to file your periodic report is $10.00. Filing late can result in a $50.00 penalty.
Elizabeth Lewis Can Protect You from Scams
All these scams have one thing in common: they are parasites on real legal requirements that your business must adhere to or had to adhere to in the past. Telling the difference between real legal requirements and scammers can be exhausting. This is where your small business lawyer can help. Your lawyer will advise you about how to remain in compliance. Then, if any questions arise, you can refer the potential scammer to your lawyer or call your lawyer for further advice prior to remitting any information or payment to the person requesting it.
Elizabeth Lewis has been serving small and medium sized businesses in Denver and across Colorado since 2007. She’s seen all the scams and knows how to avoid them. She can help your business stay in compliance with all genuine legal requirements from your foundation through all stages of your company’s successful growth, while providing the important legal protections you need throughout the life of your business.
To schedule a free initial call to see if the Law Office of E.C. Lewis, P.C is a good fit for your legal needs, please contact us today.
7 Essential Items Your Business Needs an Attorney For
For many small businesses, it’s normal for the owner to take on a lot of jobs. You’re the accountant, the HR manager, maybe even the janitor.
You might be tempted to operate as the lawyer for your business, but that’s an impulse you should reconsider. The law is very complicated, and making legal mistakes can be very expensive for your business. That’s why you should hire a lawyer, especially in important situations.
Starting Up
There are many complicated aspects of business formation that would benefit from consulting with a lawyer. From protecting your personal assets to structuring your business to filing proper paperwork with the authorities, there are many things an attorney can help with when starting your business. Not handling these things right at the beginning can lead to messy complications later, so it’s essential to talk to a business lawyer before you start.
Neglected this step? It might not be too late: talk to a lawyer now to manage your legal risks.
Writing and Reviewing Contracts
Most of the relationships your business has with other entities – suppliers, clients, landlords, employees, and more – should be governed by contracts. In some cases, it will be your responsibility to supply the contract. In other cases, the other party will give you a contract to sign.
In either case, you’ll want the help of a lawyer. A lawyer can write contracts for your business to protect you from bad actions by the other party, including not following through on promises or trying to change the terms of your relationship later. A lawyer can also review contracts provided by the other party to make sure that all the terms are in your best interest.
Ensuring Compliance
You probably have no idea how many regulations there are governing how your business operates. However, ignorance of the law will not protect you from the consequences of noncompliance. If you aren’t in compliance, you might be forced to stop business immediately and may not be able to reopen until you not only get into compliance, but also go through legal procedures proving compliance. You may also face fines and/or jail time, depending on the infraction.
Instead, it’s essential to consult with a lawyer about what regulations you need to adhere to when operating your business. The best time to do this is before you start your business, but if you haven’t yet, now is better than later.
Dealing with Legal Disputes
Properly written contracts can reduce your business’ involvement in legal disputes. With a contract defining what’s expected of each party – and the consequences of failing to meet expectations – people either live up to the contract or deal with the consequences. But sometimes there are disagreements about what needs to be done. Some of the most common disputes are between employers and employees.
In these cases, it’s necessary to get a lawyer involved. Bringing in a lawyer can help you get what you’re owed by the other party or protect you from their assertions that you didn’t live up to the terms of your contract. A lawyer can often help you resolve the issue without going to court.
Legal disputes also include when authorities allege that you didn’t comply with regulations or broke the law in some way. A lawyer can help you avoid fines, jail time, and other possible consequences.
Restructuring, Merging, Buying, or Selling a Business
Changes to your business often come with legal complications. A business lawyer can ensure that these complications are resolved properly and don’t result in future liabilities for you.
Sometimes you need to change the structure of your business. Perhaps you didn’t set it up properly at the beginning, or maybe conditions have changed so you want a new structure. A lawyer can help you resolve any obligations from the old structure and handle all the proper procedures to transition to the new structure.
Sometimes it makes sense to merge with another business. A lawyer can help you ensure that the merger is fair in terms of what value each business is bringing to the table. They can also help you resolve conflicts in the merger, such as what the new name and logo will be.
On the surface, buying a business might seem like a profitable course of action, but it’s important to get a lawyer involved. They can review the agreements and help ensure that everything you think you’re buying is actually included in the sale.
You might think selling your business automatically removes you from responsibility for anything it does after that, but it doesn’t necessarily. A lawyer can help you draw up a sales contract that maintains only the ties you want with the old business and doesn’t expose you to unnecessary liability.
Real Estate
Whenever your business is involved in a real estate deal, you need a lawyer there to make sure everything is in the best interest of your business. They’ll help you write, review, or negotiate the contracts, make sure everything is properly documented, and help you understand what you’re really getting.
Making a mistake in a real estate deal can cost your business a lot of money, so it’s best to get a lawyer involved to protect your business.
Protecting Intellectual Property
Your intellectual property is probably the most valuable thing your business owns. Unfortunately, it’s also highly vulnerable to infringement and theft. Taking proper steps to protect your intellectual property can save your business.
A Dedicated Small Business Lawyer
Elizabeth Lewis believes in helping businesses thrive in the complex legal environment that is the modern economy. She believes in building relationships with businesses, so if you work with her now, she’s happy to help you later.
Elizabeth has extensive experience addressing the needs of small businesses. She’s been serving small and medium-sized businesses in Denver and throughout Colorado since 2007, and in 2010 became a small business owner herself by opening The Law Office of E. C. Lewis, PC.
Let Elizabeth show you how her results-oriented approach can help resolve your disputes and difficulties efficiently and effectively. To learn how she can help you, please call us or use our online form today to request an appointment at the Law Office of E. C. Lewis, P.C. in Denver.
12 Topics to Discuss with a Lawyer Before Starting a Business
Starting a business is exciting. You’ve got a great idea, and your future success is so certain that you can see it in your mind. You want to get started looking for shopfronts or office space and put up your sign right away.
Not so fast. Before you get started with your business’ physical space, you need to consider the legal space in which your business operates. Talking to a business lawyer should be the first step in creating your business. Elizabeth Lewis is a business lawyer who has helped many people lay the legal groundwork for their successful business. She can help you consider all these issues in detail so you get your business started right and give yourself the best odds of success. Here are some questions you need to ask a lawyer before starting your business.
What Business Structure Is Best for Me?
There are many different ways to structure your business, such as LLCs, S corporations, C corporations, and more. Which one is best for you will depend on many factors. Talking to a lawyer is the easiest way to sort out the issues. They can listen to your goals, concerns, and business plans to determine which is the best choice for creating a business that matches your vision.
They can also help you understand the tax ramifications of each different structure, and what business developments might warrant restructuring.
What Legal Actions Are Necessary for Starting My Business?
After choosing the right business structure, there are still many essential tasks to complete before launching your business. There may be founding documents that you have to file with local authorities, the state, and the federal government.
Do you need to get an Employer Identification Number (EIN)? Are there other steps necessary for handling local, state, and federal tax responsibilities? What licenses and permits are required for your business? Not getting these initial steps right can lead to expensive penalties or fixes later.
How Can I Protect My Personal Assets?
Starting a business is risky. These risks can extend beyond the money, time, and other resources you’ve invested. If you’re not careful, all your personal assets may be at risk if your business fails or gets into legal trouble.
Make sure you take steps to protect your personal assets or else you could lose everything.
How Can I Protect My Intellectual Property?
For many businesses, the most valuable property they own isn’t their inventory, their fixtures, or their equipment – it’s their intellectual property. Software companies especially need to work hard to protect their intellectual property because that is the company’s main asset.
A business lawyer can help you take steps to protect your intellectual property before you accidentally expose it or turn it over to the public domain.
Is This a Good Name for My Business?
Speaking of intellectual property, your trademark is a valuable part of your business. Choosing the right name and protecting it with a trademark can make all the difference in the success of your business.
A business lawyer can help you understand whether the name you’re considering is, first, available, and second, a good choice from a legal standpoint.
How Can I Protect Investors?
If you’re hoping to secure additional investors in your business, they are going to want assurances that they aren’t exposing themselves to unnecessary financial or legal risks. Make sure you have appropriate safeguards in place before you ask for investment capital – it will make you look more professional and help you secure backers.
How Do I Make Sure Owners All Do Their Part?
If you have partners, co-owners, or investors with an ownership stake in the business, you’ll need to clearly lay out the responsibilities of each party. For some owners, their responsibilities might end with their financial contributions, but others might have specific duties and obligations.
A lawyer can help you draw up agreements so it’s clear what everyone is expected to do, and what are the consequences of not fulfilling their obligations.
Do I Need Bylaws for My Business?
It’s not just owners who need clear definitions of their role. The business itself needs rules for how it will operate, such as who has the power to make certain decisions, and what procedures must be followed to vest this power in a different individual or group. This is especially important for corporations, which need clear descriptions of how and when stocks will be issued, how shareholder meetings will be governed, and how to handle ownership changes.
What Regulations Must My Business Comply with?
As important as your business’ internal rules is the regulatory environment surrounding your business. Each business exists at a complex overlapping of different regulatory regimes: state, local, federal, and sometimes international regulations determine how you can run your business. Failure to comply with relevant regulatory standards can doom your business. Particularly egregious offenses can even sidestep the safeguards you put in place to protect your personal property, so make sure you know what regulations your business must adhere to.
What Insurance Do I Need for My Business?
Like driving a car, running a business often has insurance requirements to operate legally. In Colorado, all businesses need workers’ compensation insurance, and you may need professional liability insurance, depending on your business. In addition, there are types of insurance that are just a good idea to protect you and your co-owners.
A lawyer can help you understand what insurance is required.
What Contracts Will My Business Need?
Whenever your business interacts with other entities, including suppliers, employees, and landlords, you may want a contract defining those interactions. Whether a contract is necessary depends on the value of the relationship and the possibility of problems. If you run a store, for example, you don’t need a contract with everyone who buys a $10 item, but contracts become necessary when you’re providing ongoing services, and it’s a good idea to protect your business with a contract when selling complicated and/or expensive equipment.
Can You Be My Lawyer If I Need You Later?
Your business is likely to need a lawyer on many occasions. By talking to a lawyer when forming the business, you’ve eliminated some of them, but others are likely to arise. Having access to a lawyer when they do will make things go more smoothly.
Many business lawyers are prepared to handle legal issues that come up, but you might be expected to pay a retainer to guarantee an immediate response.
Get Solutions to Your Business Formation Problems
The Law Office of E.C. Lewis has extensive experience helping small businesses at all stages of formation and growth. Elizabeth Lewis has helped many businesses navigate the difficult legal requirements of starting up. She’s also seen how complicated it can be when businesses don’t take care during these early stages. Since 2007, Elizabeth has been helping small and medium sized businesses with their legal needs. She knows how important the early legal requirements are, and she can help you navigate this critical phase of your new endeavor.
For help getting your business started, please call us or use our online form to schedule a consultation.
