by eclewis | Apr 11, 2011 | Business News, Online/Social Media Law
In recent news, Arkansas is yet another state that has passed the so-called “Amazon Tax”. In addition, Connecticut and Hawaii are both looking at similar laws. As many of my readers know, this tax makes companies that use affiliate marketers liable for collecting sales tax in the state. As it stands now, most online retailers who do not have a place of business in the state (other than affiliate marketers) do not collect sales tax. Last year, a similar bill killed the affiliate marketing business in Colorado.
What is now also being reported is that one of the bigger sponsors for the so-called Amazon Tax is another large company – Walmart. As Walmart has retail stores in almost every state, it collects sales tax from those who purchase online. This puts it, and stores such as Target, K-Mart, and Best Buy, at a disadvantage over Amazon and Overstock.com as the latter do not collect sales tax.
Although Amazon, Overstock, and other online-only companies have attempted to stop such measures, it appears that the number of states looking to tax online is growing and growing. Eventually, it appears that even online companies will have to collect taxes.
As always, if you are a small business with questions about whether you are doing business correctly, you can reach me at 720-258-6647 or elizabeth.lewis@eclewis.com.
by eclewis | Apr 4, 2011 | Business News
The Secretary of State has issued an alert that Colorado businesses are being sent a deceptive letter from a company called “Corporate Controllers Unit.” The letter begins by citing the Colorado Revised Statutes regarding the filing of a periodic report. It then states that you need to remit a fee of $225.00 and the company will file the periodic report for your business. You can view a copy of the letter here. DO NOT SEND THIS COMPANY MONEY.
Yes, a business needs to file a periodic report annually with the Secretary of State. If I am your registered agent, I typically file this report for you. If I am not your registered agent, you can file this report with the SOS office for only $10.00. You do not need a company such as Corporate Controllers Unit to do it for you.
If you have any questions about your periodic report, please call me, your Denver Business Attorney, at 720-258-6647 today!
by eclewis | Mar 30, 2011 | Business News
Businesses quickly become overwhelmed with the amount of papers flowing around. Credit card receipts, bank statements, contracts, leases, employment papers – all of these can become overwhelming without a good filing system, even if the filing system is digital.
So how long do you need to keep records? The default rule is that you should keep all records for at least three years. This includes any tax information, receipts, and expired leases. However, you should keep many documents longer. For example, you should keep most contracts for at least three years AFTER the contract is complete. For any court cases that have resulted in judgments, you should keep the records for at least six year (and probably until the debt is paid). For retirement accounts, including contributions by owners to their own retirement accounts, you should keep the information until after the retirement funds are used. You should keep credit card records, including payment records, for at least seven years after the credit card is closed. Property records for property owned by the business (including receipts for any improvements to such property) should be kept for at least three years after the property is sold.
In addition to these time frames, there may be additional time frames for records depending on your business. For instance, attorneys in Colorado are suppose to keep client files for ten years. Financial advisers, medical professionals, and real estate professionals have their own time frames.
When in doubt about how long to keep records, you should contact your Denver business attorney. If you do not have a business attorney in Colorado, you can contact me by phone at 720-258-6647 or by email.
by eclewis | Mar 28, 2011 | Business News, Online/Social Media Law
As many people remember, especially those that use to be Amazon affiliate marketers, last year Colorado passed a tax that in essence stated that is a company had affiliate marketers in Colorado, it had nexus to Colorado and had to collect sales tax on behalf of Colorado. While we were not the only ones to do so (Ohio and Rhode Island have similar provisions), we did suffer the consequences. Within a day of passage, Amazon pulled all its contracts with affiliate marketers and the state failed to collect any additional taxes but did lose the taxes that those affiliate marketers paid.
However, in recent news, Illinois is now looking to pass similar legislation. While obviously they won’t be the first to do so, because of the size of the state it may have a greater impact than the law did in someplace like Rhode Island or even Colorado. We will have to wait and see if this is the beginning of a landslide to try to tax online sales throughout the county.
In other news, the Associated Press has an article that Washington D.C. is suing sites such as Expedia and Orbitz for not remitting enough in hotel taxes for hotel rooms purchased online. This appears to have more weight to it than the online sales of goods as both Expedia and Orbitz appear to be accepting the tax from the Enduser but not paying it to the state. Again, this is something to watch to see what happens!
by eclewis | Mar 22, 2011 | Business News, Misc. Legal Tidbits
Many businesses have confidential information – whether it is credit card receipts with business credit card information on them, contracts with client names and addresses on them, or bank statements with financial information on them. Businesses need to keep this information secure for multiple reasons – rarely does a business owner think about consequences such as business identity theft, lawsuits from clients, or denial of trade secret status if confidential information isn’t confidential.
By allowing confidential information to be stored on desks that are available to everyone’s eyes, thrown away without being shredded, or stored insecurely on laptops, a businesses faces threats like the above. If your business has any confidential information it collects, it is important to have a confidential documents policy for both soft and hard copies of documents. For financial information, you should speak with both your Denver small business accountant and Denver small business lawyer to see what you should store and how. For all other documents, you should speak to your Colorado small business lawyer and Colorado insurance agent to make sure you are protected. As always, you can call me, your Denver Business Lawyer, at 720-258-6647, email me, or click on the right to Book an Appointment now!
by eclewis | Mar 17, 2011 | Business News, IP Law
When filing a trademark, clients ask me, their Denver Small Business Lawyer, whether they should file a state or a federal trademark. To answer this question requires a two-prong test. First, I ask clients whether they plan to only use the trademark in Colorado or whether they are going to use it in other states also. Second, I ask clients if they plan on doing any online sales as this can easily cross state lines even if they don’t plan to physically open stores or offices in other states. If a client answers yes to wanting to use the trademark in another state or plans to sell online, then I lean towards a federal trademark; although, there are many other factors that may change this on a case-by-case basis so talk to your attorney to see if this is the right for you.
Second, I ask clients if they have the funds to secure a federal trademark. Federal trademarks are both more expensive and time consuming than state trademarks. If the chances are slim that they are going to use the trademark in other states and their funds are limited, this may be the deciding factor; although, again, talk to your attorney.
State trademarks are great if you are only going to use the mark in Colorado. However, federal trademarks protect you throughout the US. State trademarks are cheap and quick. However, federal trademarks are easier to enforce and allow for multiple claims if infringement occurs. Therefore, it is always best to talk to a professional prior to filing to see what you should do! As always, you can call me, your Denver Business Lawyer, at 720-258-6647, email me, or click on the right to Book an Appointment now!
