Legal Guide for Starting & Running a Small Business, Seventh Edition

TeamLiB......Page 1
Cover......Page 2
Table of Contents......Page 9
ACKNOWLEDGMENTS......Page 8
CHAPTER 1 Which Legal Form Is Best for Your Business?......Page 20
A. Sole Proprietorships......Page 23
B. Partnerships......Page 26
C. Corporations......Page 30
D. Limited Liability Companies......Page 40
E. Choosing Between a Corporation and an LLC......Page 42
F. Special Structures for Special Situations......Page 45
CHAPTER 2 Structuring a Partnership Agreement......Page 52
A. Why You Need a Written Agreement......Page 53
B. An Overview of Your Partnership Agreement......Page 54
C. Changes in Your Partnership......Page 64
CHAPTER 3 Creating a Corporation......Page 66
A. The Structure of a Corporation......Page 67
B. Financing Your Corporation......Page 70
C. Compensating Yourself......Page 71
D. Do You Need a Lawyer to Incorporate?......Page 72
F. Twelve Basic Steps to Incorporate......Page 73
G. After You Incorporate......Page 82
CHAPTER 4 Creating a Limited Liability Company......Page 88
A. Number of Members Required......Page 89
C. Financing an LLC......Page 90
D. Compensating Members......Page 92
E. Choosing a Name......Page 93
F. Paperwork for Setting Up an LLC......Page 94
G. After You Form Your LLC......Page 98
H. Safe Business Practices for Your LLC......Page 100
CHAPTER 5 Developing a Buy- Sell Agreement......Page 104
A. Major Benefits of Adopting a Buy- Sell Agreement......Page 106
B. Where to Put Your Buy- Sell Provisions......Page 110
C. When to Create a Buy- Sell Agreement......Page 111
CHAPTER 6 Naming Your Business and Products......Page 112
A. Business Names: An Overview......Page 115
B. Mandatory Name Procedures......Page 118
C. Trademarks and Service Marks......Page 121
D. Strong and Weak Trademarks......Page 122
E. How to Protect Your Trademark......Page 123
F. Name Searches......Page 124
CHAPTER 7 Licenses and Permits......Page 128
A. Federal Registrations and Licenses......Page 130
B. State Requirements......Page 131
C. Regional Requirements......Page 133
D. Local Requirements......Page 134
E. How to Deal With Local Building and Zoning Officials......Page 136
CHAPTER 8 Tax Basics for the Small Business......Page 140
A. Employer Identification......Page 141
B. Becoming an S Corporation......Page 145
C. Business Taxes in General......Page 146
D. Business Deductions......Page 153
E. Tax Audits......Page 158
CHAPTER 9 Raising Money for Your Business......Page 162
A. Two Types of Outside Financing......Page 164
B. Thirteen Common Sources of Money......Page 169
C. Document All Money You Receive......Page 176
CHAPTER 10 Buying a Business......Page 180
A. Finding a Business to Buy......Page 181
B. What’s the Structure of the Business You Want to Buy?......Page 182
C. Gathering Information About a Business......Page 186
D. Valuing the Business......Page 187
E. Other Items to Investigate......Page 190
F. Letter of Intent to Purchase......Page 192
G. The Sales Agreement......Page 194
I. Selling a Business......Page 203
CHAPTER 11 Franchises: How Not to Get Burned......Page 208
A. What Is a Franchise?......Page 209
B. The Downsides of Franchise Ownership......Page 210
C. Investigating a Franchise......Page 214
D. The Uniform Franchise Offering Circular......Page 215
E. The Franchise Agreement......Page 221
F. Resolving Disputes With Your Franchisor......Page 225
CHAPTER 12 Insuring Your Business......Page 226
A. Working With an Insurance Agent......Page 227
B. Property Coverage......Page 229
C. Liability Insurance......Page 233
D. Other Insurance to Consider......Page 237
E. Saving Money on Insurance......Page 239
F. Making a Claim......Page 242
CHAPTER 13  Negotiating a Favorable Lease......Page 244
B. Leases and Rental Agreements: An Overview......Page 245
C. Short- Term Leases (Month-to-Month Rentals)......Page 246
D. Written Long- Term Leases......Page 247
E. Additional Clauses to Consider......Page 259
F. Shopping Center Leases......Page 260
H. Landlord- Tenant Disputes......Page 261
I. Getting Out of a Lease......Page 263
J. When You Need Professional Help......Page 264
CHAPTER 14 Home- Based Business......Page 266
A. Zoning Laws......Page 267
B. Private Land Use Restrictions......Page 272
C. Insurance......Page 273
D. Deducting Expenses for Business Use of Your Home......Page 275
CHAPTER 15 Employees and Independent Contractors......Page 280
A. Hiring Employees......Page 281
B. Job Descriptions......Page 284
C. Job Advertisements......Page 285
E. Interviews......Page 289
G. Investigating Job Application Information......Page 299
I. Personnel Practices......Page 301
J. Illegal Discrimination......Page 302
K. Wages and Hours......Page 305
L. Occupational Safety and Health......Page 308
M. Workers¡¯ Compensation......Page 309
N. Termination......Page 310
O. Unemployment Compensation......Page 312
P. Independent Contractors......Page 313
CHAPTER 16 The Importance of Excellent Customer Relations......Page 322
A. Developing Your Customer Satisfaction Policy......Page 324
B. Telling Customers About Your Policies......Page 326
CHAPTER 17 Legal Requirements for Dealing With Customers......Page 328
A. Advertising......Page 329
B. Retail Pricing and CHAPTER 16......Page 332
C. Warranties......Page 336
D. Consumer Protection Statutes......Page 342
E. Dealing With Customers Online......Page 343
CHAPTER 18 Cash, Credit Cards and Checks......Page 346
B. Credit Cards......Page 347
C. Checks......Page 348
CHAPTER 19 Extending Credit and Getting Paid......Page 356
A. The Practical Side of Extending Credit......Page 357
B. Laws That Regulate Consumer Credit......Page 363
C. Becoming a Secured Creditor......Page 364
D. Collection Problems......Page 365
E. Collection Options......Page 369
CHAPTER 20 Put It in Writing: Small Business Contracts......Page 370
A. What Makes a Valid Contract......Page 371
B. Unfair or Illegal Contracts......Page 373
C. Misrepresentation, Duress a Valid Contract......Page 374
D. Must a Contract Be in Writing?......Page 375
E. Writing Business- to-Business Contracts......Page 378
F. The Formalities of Getting a Contract Signed......Page 382
G. Enforcing Contracts in Court......Page 386
H. What Can You Sue For?......Page 387
CHAPTER 21 The Financially Troubled Business......Page 390
A. Thinking Ahead to Protect Your Personal Assets......Page 391
B. Managing the Financially Troubled Business......Page 394
C. Seeking an Objective Analysis......Page 397
D. Workouts......Page 399
E. Selling or Closing the Business......Page 402
F. Understanding Bankruptcy......Page 404
CHAPTER 22 Resolving Legal Disputes......Page 414
A. Negotiating a Settlement......Page 415
B. Understanding Mediation......Page 416
C. Arbitration......Page 418
D. Going to Court......Page 421
CHAPTER 23 Representing Yourself in Small Claims Court......Page 426
A. Deciding Whether the Business......Page 427
C. Meeting the Jurisdictional Limits......Page 429
D. Before You File Your Lawsuit......Page 431
F. Handling Your Small Claims Court Lawsuit......Page 433
G. Representing Yourself If You’re the Defendant......Page 436
I. Collecting Your Judgment......Page 437
CHAPTER 24 Lawyers and Legal Research......Page 440
A. How to Find the Right Lawyer......Page 442
B. Fees and Bills......Page 444
C. Problems With Your Lawyer......Page 445
D. Do- It- Yourself Legal Research......Page 446
Appendix A......Page 450
Appendix B......Page 452
A......Page 454
B......Page 455
C......Page 456
D......Page 458
E......Page 459
G......Page 460
H......Page 461
L......Page 463
O......Page 465
P......Page 466
R......Page 467
S......Page 468
T......Page 470
V Zoning ordinances, 7/ 9......Page 471