Hello, my name is Walt Jarvis and last year when I listed my house on the market to sell, I was very optimistic about the entire process. I was even more excited when I received an offer on the property. Before the sale could go through, a problem arose so I decided to hire a real estate attorney. The attorney I hired took care of the issue for me, which saved me a lot of time and headaches. I learned valuable information from the attorney and I wanted to share it by writing a blog. If I ever decide to sell any more property, I will hire an attorney first in case any problems occur. If you're selling a home or a business, you should read my blog to learn how a real estate attorney can help with various aspects of the sale.
If you are starting a small business, you need to make sure that you have everything in order before you open its doors. This includes the legal aspects of the business. By failing to look at the legal side of your business ahead of time, you may find yourself in a heap of legal trouble later down the road. To reduce the chances of this happening, here are three small business legal tips:
Tip #1: Make Sure to Sign a Detailed Partnership Agreement.
Many small business owners will do business with significant others, family members, and friends. While there isn't necessarily anything wrong with this, it is important that you don't fail to utilize a partnership agreement. You never know when something may go south, and it is important that you have a signed agreement to protect yourself. When you are doing business with other individuals, the need for a signed partnership agreement is that much more important.
The agreement should outline how each partner's interests will be protected throughout the operation of the business. Partnership agreements should also outline the capital commitment, effort, and time of each partner, in addition to how ownership will be redistributed if a partner decides to leave the business.
Tip #2: Get Your Employees to Sign Employment Agreements.
At first, you may not have employees since you are running and operating a small business. However, as you get your business off the ground, the need for employees may be necessary. When this time comes, it is important that you have an employment agreement drafted for your employees to sign – and this is true regardless of whether your employees are family, friends, or complete strangers.
Employment agreements should be straightforward in terms of expectations of your employees, including rules to follow, scope of work, expected hours, etc. It should be made clear that the employee's status of work at your business is "at will," which means that they can quit or be terminated for any reason and at any time. Don't forget to also include rules regarding harassment, discrimination, and other illegal activities of your employees.
Tip #3: Consider Including an Arbitration Clause.
It is expensive to go to court, especially for a small business, so it would be wise to do what you can to try to limit the chances of litigation. One of the easiest and most effective ways for small businesses to do this is to include an arbitration clause in your contracts and to make certain that all other alternative routes have been exhausted before going to court.
In order to get all of your legal affairs in order, it may be helpful to work with a professional business attorney who can set up all of the legal documents and make sure everything is set up to protect you and your business. For more information and help, contact a law firm in your area, such as Law Offices of Bonnie M. Benson, P.A.Share