When you first start your own business, there’s a chance that you didn’t give much thought to how it was organized. Or, even if you did, the needs of your business can change over time, and what worked for your company when it was first starting out might not work now. Either way, there’s a decent chance that your current business organization needs an overhaul, and here’s how you can tell. Continue reading “When Should You Consider Reorganizing Your Business?”
Category: Business Law
Dissolving a Limited Liability Company in New York
A Limited Liability Company (LLC) is one of the many business entities that one can form in New York. An LLC is defined as a company that combines elements of a partnership, sole proprietorship, and a corporation. In this type of business structure, the owners, or members, are generally not personally liable for the LLC’s losses and lawsuits.
Operating an LLC may not always go as planned. If you no longer wish to operate your business under the LLC, you may dissolve it. However, it is necessary to properly and officially dissolve the LLC in the State of New York. Failure to properly dissolve the business entity can lead to legal complications and monetary penalties.
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Why Incorporate?
Even though corporations are an omnipresent part of day-to-day life in the modern world, many people don’t know what a corporation is, or why someone would want to incorporate their business in the first place.
A corporation put simply, is a legal entity that exists independently of the people who own and run it. Due to what is known as “the legal fiction of corporate personhood,” corporations are treated as legal “persons” for a variety of purposes, most significantly for the purposes of legal and financial liability. In other words, when a business loses money or gets sued, it would normally be the business’ owner or owners that are held responsible for paying off the business’ debts or paying for any legal judgments. However, when a business is incorporated, those losses and judgments are generally incurred by the corporation, not the owners, and so the owners generally aren’t held responsible if the company can’t pay for everything and goes bankrupt.
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Are Arbitration Clauses Right For Your Small Business?
When contracting on behalf of your small business, it is important to identify whether you would like to include an arbitration clause. Many small business contracts include arbitration clauses that mandate all disputes arising out of the claim to be brought in arbitration rather than litigated in court. Before entering into a contract including an arbitration clause, or including one in a contract of your own, it is important to gain an understanding of the process. Continue reading “Are Arbitration Clauses Right For Your Small Business?”
New York City Takes Steps to Combat Discrimination Based on Hair
In February 2019, New York City released new guidelines that would provide legal recourse to those who have faced harassment, punishment, or termination due to their hair or hairstyle. As reported by The New York Times, the legal enforcement guidelines, which were released by the New York City Commission on Human Rights (NYCCHR), specify that targeting individuals based on their hair or hairstyle at work, in school, or in public spaces can now be considered racial discrimination. The law is applicable to New York City. Continue reading “New York City Takes Steps to Combat Discrimination Based on Hair”
Cuomo May Seek Internet Sales Tax on Products Sold Online
Newsday reported that New York Governor Andrew Cuomo is looking to implement a tax on all products bought from Internet-based retailers. Cuomo said the rate would be 7% throughout much of the state and implementing such a tax would generate $250 million in revenue a year. Continue reading “Cuomo May Seek Internet Sales Tax on Products Sold Online”
When Can I Use an Electronic Signature?
With the advancement of technology, more individuals are abandoning the pen and paper in exchange for electronic documents. When entering into any type of electronic agreement, it is important to know whether an electronic signature is valid and whether it can be enforced. Continue reading “When Can I Use an Electronic Signature?”
Employer-Sponsored Insurance Costs Continue to Rise in New York
One of the biggest benefits a business can offer its staff is an employer-sponsored insurance plan. According to the Kaiser Family Foundation, employer-sponsored health insurance plans benefit as many as 152 million people in the U.S. Unfortunately, many New York businesses and workers are facing the harsh reality of rising insurance costs, which are far outpacing that of employees’ wages. Continue reading “Employer-Sponsored Insurance Costs Continue to Rise in New York”
Few Businesses Took Advantage of NYS Tax Loophole
Back in April, New York Governor Andrew Cuomo introduced a program for workers in the state that would act as an end-around to President Trump’s $10,000 State and Local Tax (SALT) deduction cap by deferring payments that exceed the cap. Eight months later, the program has become a flop as very few businesses in New York State took the governor up on his offer. Continue reading “Few Businesses Took Advantage of NYS Tax Loophole”
What to Consider in a Non-Disclosure Agreement
No matter what type of business one may have, protecting the business’ confidential information is crucial. Whether it be during the initial startup, bringing in investors, or in conducting other commercial matters, there are many ways a business’ confidential information can be exposed. One way to limit the release of confidential information is through the use of a non-disclosure agreement (NDA). A good practice for any business is to have each individual sign a non-disclosure agreement before speaking about a possible business relationship. Such an agreement will help prevent them from disclosing or using your information while also allowing you to speak openly with them. Continue reading “What to Consider in a Non-Disclosure Agreement”
