Legal Tips for Businesses

As a businessperson, knowledge is the key to your success. This is particularly true when it comes to basic legal situations. Following are some helpful tidbits that might apply to your business.

1. Avoid Oral Contracts – In most situations, oral promises to do things are unenforceable, so avoid them. When it comes to contracts, the only thing important is what is in writing.

2. Operating Agreement vs Bylaws – There are no bylaws for a limited liability company as found in a corporation. The Operating Agreement serves the function of the bylaws.

3. Written Agreement Jurisdiction – When negotiating a contract, make sure to look at the jurisdiction clause. You want it to be in your town or city. Otherwise, you may have to travel across the country to defend yourself in a lawsuit.

4. Copyright Office Information – All copyrights must be filed with the Copyright Office. It is a department of the Library of Congress.

5. Financing New Businesses – Starting a business usually requires money. Many people make the mistake of first offering ownership interests in exchange for cash. Use this as a last resort.

6. Business Ownership Planning – At the outset of a business start up, it is hard to image worrying about owners leaving. Well, you need to sit down and plan out scenarios with the owners. It is easier to negotiate difficult subjects before revenues are made.

7. Copyright Library of Congress – To copyright something, you need to file an application with the Copyright Office which is a department of the Library of Congress.

8. Business Failure Rates – Roughly 80 percent of businesses fail in the first two years. Plan as much as you can before starting the business to increase your chances of making it.

9. Going Ecommerce? – Most startups don’t think about going online before opening a brick and mortar office or shop. If you can get the hang of web design, it is much cheaper to start online.

10. The First LLC – The first limited liability company came to us from Wyoming. To attract tax revenues, Wyoming passed a law allowing them in the late 70s.

The law is a vast and complex subject. A few tips are not going to get you by. If you find yourself in a complex situation, seek out the advice of a good attorney.

Article Source: http://www.ezarticles.info

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