by eclewis | Jul 24, 2010 | Business News
When a business attorney represents a business, one of the questions that all parties must agree on is who is the client? This is something that every client should be thinking about prior to meeting with a business attorney for the first time and a question that the client should also ask the business attorney. It is especially important for businesses with more than one owner as the needs of the business and the needs of each of its owners may differ.
A business attorney usually only represents one party in a matter. So, if the business is owned by three individuals, the business attorney will usually either represent one of the individuals or will represent the business. The one time that the business attorney may represent more than one party is when the business only has one owner (but even in this instance, the business attorney may have to either decline representation or only represent one party if the business and the owner have different interest which does not happen often but can occasionally occur).
This may become expensive for parties who each need representation for various reasons. Therefore, it is always best to speak with any prospective business attorney about these issues prior to hiring him or her.
If you or your business are in need of legal help, please contact me, your Denver business attorney, today at 720-258-6647 or Elizabeth.Lewis@eclewis.com.
by eclewis | Jul 23, 2010 | Business News
Business Entity Differences
The following is provided for informational purposes only. The information below may not apply to your specific situation so always consult an attorney. Use of this information does not create an attorney-client relationship between you and the Law Office of E.C. Lewis, P.C., home of your Denver small business lawyer.
What is the difference between all the different business entities?
Business entities typically used by small businesses include:
- Sole proprietorships
- Partnerships (general or limited liability)
- Corporations
- S-corporations
- Limited Liability Companies
Sole Proprietorships
Starting a sole proprietorship is the easiest way for a single individual to start a business. An individual does not have to file any incorporation paperwork to form a sole proprietorship with Colorado; however, the individual may be required to get specific permits from the city, county, or state. The individual may need an Employee Identification Number (EIN) if he is going to have employees or independent contractors. In addition, in some cases, the individual may also want to apply for intellectual property rights such as trademarks, trade names, and copyrights.
Sole proprietors are required to keep records for all business expenses. Sole proprietors need to keep personal and business expenses separate. In most cases, this means keeping separate checking accounts, credit cards, and making sure that when purchasing business and personal items at the same time, requesting separate transactions (and receipts). In addition, if a sole proprietor has employees, he will need to keep documentation on each employee as required by the United States Department of Labor, the IRS, Colorado Department of Labor and Employment, and other governmental agencies.
The advantages to forming a sole proprietorship are:
- They are easy to form.
- They are inexpensive to form.
- There is less paperwork involved than other entities in most cases.
- The tax preparation is easier as, in most cases, the sole proprietor files a schedule C for the business as opposed separate individual and business returns.
- There is no double taxation (i.e. the business and the owner are not taxed separately because the two are the same).
- The business losses can offset all of the owner’s income from all sources and the spouse’s income.
The disadvantages to forming a sole proprietorship are:
- There is personal liability for the sole proprietor.
- A sole proprietor’s tax rate may increase.
- A sole proprietorship can only have one owner.
For the full article on the different business entities, and information about the Law Office of E.C. Lewis, P.C.’s services, please contact your Denver business lawyer Elizabeth Lewis today.
by eclewis | Jul 22, 2010 | Business News
The following is provided for informational purposes only. The information below may not apply to your specific situation so always consult an attorney. Use of this information does not create an attorney-client relationship between you and the Law Office of E.C. Lewis, P.C., your Denver business attorney.
What do I need to do to start a business?
The first thing someone needs to start a business is an idea. This idea can be something new (i.e. selling a new product, opening up a new restaurant), an improvement on a current idea (i.e. selling existing products in a new way or a better way), or starting a franchise company (i.e. something like Quiznos, McDonald’s, etc).
After the idea, there are many things for a new business owner to do. Although you should do the following first, you can do them the tasks in any order you like as long as you finish this list before starting the next:
- Determine who will be part of starting and owning the business
- Find funding
- Create a business plan
- Incorporate or file the correct papers with the Colorado Secretary of State (i.e. partnership agreement)
- Find professionals to help you out such as a lawyer, an accountant, an insurance broker, and a realtor
- Get intellectual property rights if necessary
You should do the following next:
- Find a place to start your business
- Get all necessary licenses and tax information
- Hire employees or independent contractors
- Get through the first few days
Ownership
As a new businessperson, you need to figure out whether you want to pursue the idea on your own or whether you want to have business partners. When deciding whether to have business partners, you will need to examine things such as how the business relationship will affect the existing relationship, whether the potential partners are supportive of opening a new business, and what qualities the potential partners will bring to the table. For instance, if you are considering a partner to bring money to form the company and you have the idea, you need to decide how much control over the business the other person will get. If you are related to the potential partners, you need to carefully consider whether going into business together may create a family riff.
The rest of this article goes over the following:
- Funding
- Business Plan
- Paperwork with SOS
- Professional Team
- Intellectual Property Rights
- Determine Location
- License and Taxes
- Hire Employees
- First Day Woos
For the full article on starting a business, and information about the Law Office of E.C. Lewis, P.C.’s services, please contact your Denver small business attorney Elizabeth Lewis today.
by eclewis | Jul 21, 2010 | Business News
The following is provided for informational purposes only. The information below may not apply to your specific situation so always consult an attorney. Use of this information does not create an attorney-client relationship between you and the Law Office of E.C. Lewis, P.C., your Denver business lawyer.
What is intellectual property protection and does my business need it?
Intellectual Property Rights Overview
There are four types of intellectual property rights:
- Patent protection
- Copyright protection
- Trademark protection
- Trade secret protection
The first type of intellectual property protection is a patent. Patents protect any new process, machine, manufactured article, or composition of matter. Patent protection lasts for approximately 20 years. After approximately 20 years, the patent expires and other companies can manufacture the item. For example, generic drugs typically flood the market right after the patent on the brand name drug expires. Federal law protects patents.
The second type of intellectual property protection is a copyright. Copyrights protect “original works of authorship,” including literary, dramatic, musical, artistic, and certain other intellectual works. In addition, it also includes software developed through creative activity. Presently, the law protects copyrighted works for the author’s life plus 70 years; however, the amount of time seems to increase every time the copyright for Mickey Mouse is about to expire. Federal law protects copyrights.
The third type of intellectual property protection is a trademark. Trademarks protect “a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs, that identifies and distinguishes the source of the goods of one party from those of others.” Trade names, the name that a business advertises under, also fall under trademark protection. Trademarks last as long as the owner keeps using the trademark and files documentation with the Patent and Trademark Office stating this. Federal law protects trademarks. In addition, in some cases, state law may protect trademarks and trade names.
The fourth type of type of intellectual property protection is a trade secret. A trade secret protects a formula, practice, process, design, or pattern that not generally known to the public. Businesses use trade secrets because in order to get patent or copyright protection, you must disclose the item to the public and patents and copyrights only lasts for a limited time (although this time may be 70 years or more with a copyright). Usually, agreements with employees, contractors, or others that need to know about the trade secret protect the trade secret. The best-known trade secret is the formula for Coca-Cola. State law protects trade secrets either explicitly or through general contract law.
For more information on Intellectual Property law and the Law Office of E.C. Lewis, P.C.’s services, please contact your Denver small business lawyer Elizabeth Lewis today.
by eclewis | Jul 20, 2010 | Business News
The following is provided for informational purposes only. The information below may not apply to your specific situation so always consult an attorney. Use of this information does not create an attorney-client relationship between you and the Law Office of E.C. Lewis, P.C., home of your Denver Business Lawyer.
What type of insurance does my business need?
Depending on your business, you may need some or all of the following insurances:
- Real property insurance
- Business property insurance
- Business continuation insurance
- Disability income insurance
- Auto insurance
- Commercial liability
- Product liability
- Employee benefits liability
All businesses with employees need to pay for the following insurances:
- Worker’s compensation insurance
- Unemployment insurance
As insurance is a specialty in itself, the best idea is to consult an insurance agent. Many insurance companies offer additional types of insurance depending on your specific business (i.e. rental unit insurance).
For more information on forming a business and the Law Office of E.C. Lewis, P.C.’s services, please contact your Denver small business lawyer Elizabeth Lewis today.
by eclewis | Jul 19, 2010 | Business News
The following is provided for informational purposes only. The information below may not apply to your specific situation so always consult an attorney. Use of this information does not create an attorney-client relationship between you and the Law Office of E.C. Lewis, P.C., home of your Denver business attorney.
Should I use independent contractors or employees?
Recently, there has been a trend to use independent contractors over employees – and for good reasons. Employers usually do not pay employment taxes, unemployment insurance, or worker’s compensation insurance on independent contractors. Independent contractors work without many of the protections afforded to employees such as the rights to minimum wage and overtime. However, it is difficult to classify workers as independent contractors and the trend is for government agencies to find that most workers are employees. Therefore, if your company is going to use independent contractors, it is important to make sure that your independent contractors meet all tests necessary to be classified as such.
Unfortunately, there is not one test used by all parties that may have an interest in determining whether your workers are independent contractors or employees. For example, the IRS, the United States Department of Labor, and Colorado statutes each have a different test. Your specific situation will determine which test, or tests, you will use. The following is the basics of the IRS and Colorado tests. More intricacies can be found both in statutes and case law.
For the full article on the IRS, Colorado, and United States Department of Labor tests for employee verses independent contractor, and information about the Law Office of E.C. Lewis, P.C.’s services, please contact your Denver small business attorney Elizabeth Lewis today.
