Receipts under $75.00

by eclewis | Jul 18, 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.

Do I need to keep receipts under $75?

In the 1990s, under the guise of helping business owners, the IRS stated it would no longer require receipts for meal and entertainment purchases under $75. However, if a business owner decides not to keep the receipt, he or she must have a log that includes the date, time, place, amount, who was involved, and the business purpose of the expense. If audited, the IRS may also request substantiating documents verifying the expense, including bank or credit card statements.

If a business owner keeps receipts, he or she should write who was involved and the business purpose on the receipts (and the date, time, place and amount if that is not already on the receipt). Although it is nice to have a log of the expenses and bank and credit card statements, with the receipts it is not absolutely necessary.

So the obvious question is, if I am audited and I am going to need to produce a log of all the expenses and statements to verify I actually spent the money, why not just keep the actual receipts? Well, the answer is quite simple. Keep your receipts. The IRS stated you do not have to keep the receipts, but that does not mean that if you are audited and do not have them, that they will allow the deductions.

For the full article on Receipts Under $75 Dollars and information about the Law Office of E.C. Lewis, P.C.’s services, please contact your Denver small business lawyer Elizabeth Lewis today.

Trade Names

by eclewis | Jul 17, 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.

What is a trade name and do I need one?

A trade name is any name, other than the legal name, under which a business operates. A trade name may be used by an individual, a corporation, or anyone else conducting business in Colorado. For instance, if John Doe does business under “The Best Painting Company That Could”, his trade name would be “The Best Painting Company That Could” unless he has registered a corporation in Colorado called “The Best Painting Company That Could.”

State and federal law governs trade names. Both common law and statutory law protect trade names in Colorado. Under federal law, a business or individual registers a trade name as a trademark. The Lanham Act usually protects trademarks (there are some additional laws that protect trademarks in regards to importation of goods and other areas).

When an individual or business uses a trade name in Colorado, even if not registered, the user may have a common law right to the name. Therefore, it is best to do some research before deciding on a trade name. I usually recommend doing an online search of the name. I also recommend doing a domain name search to see if the domain name is being used (an indication that a business may already be operating under that name). Although this is not a foolproof way to ensure that no one else is using the trade name, it is a good start and may protect you against claims of trade name infringement in the future. To make sure that you are protected to the best extent possible, it is best to document everything that you do to research the use of the name in case in the future someone accuses you of using his trade name.

For the rest of this article about trade names, and information about the Law Office of E.C. Lewis, P.C.’s services, please contact your Denver small business lawyer Elizabeth Lewis today.

Business Records

by eclewis | Jul 16, 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..

What records should I keep as a business owners?

There are three general areas you should keep records for:

• general business purposes
• tax purposes
• employment purposes

Each of these are discussed in detail in this article.

What records should I keep for general business purposes?

The records you should keep depend a lot on your business.  For all businesses, it is important to keep copies of the following:

• Entity formation documents (i.e. Articles of Incorporation)
• EIN application (Form SS-4)
• Colorado Business Registration (Form CR0100)
• Applications for insurance
• Insurance documents
• Loan applications
• Loan documents
• All contracts
• Applications for permits
• Permits
• Applications for licenses
• Licenses
• Information about any taxes collected (i.e. sales tax, liquor taxes, etc)
• Employee information (see information on employment information needed below
• Tax information (see information on tax records below)

Depending on your business, there may be additional documents you need to keep.  For instance, if you have a car repair business, you may need to keep records for the disposal of oil.

For the full article on what documents you need to keep, including for tax and employment purposes and information about the Law Office of E.C. Lewis, P.C.’s services, please contact Elizabeth Lewis today.