One of the primary reasons business owners set up corporations and limited liability companies (LLC) is to shield their personal assets from debts and other liabilities incurred by the business.
Indeed, corporations and LLCs exist as separate legal entities from their owners, meaning the business itself can acquire assets, enter into contracts, and take on debt. In turn, if a corporate entity is unable to pay its debts, creditors are typically only allowed to go after the company’s assets, not the owners’ personal assets.
However, there are several circumstances in which business owners can be held personally liable for corporate or LLC debts. Sometimes business owners simply make innocent mistakes when running a business that leave them personally liable.
Other times, business owners take deliberate actions that expose them to personal liability, such as using the corporation to promote fraud, failing to observe corporate formalities, or even commingling corporate and personal assets. In any of these circumstances, a court can hold the owners personally liable for the debts and liabilities of the corporate entity. Lawyer types refer to this as “piercing the corporate veil.” Read more
Just about every business owner—whether they know it or not—has created some form of intellectual property (IP) during the life of their company.
IP is an extremely important part of your business. Indeed, valuation experts estimate that IP makes up 40% to 90% of the total value of some companies.
When it comes to IP protection, patents protect inventions and trademarks protect brand names, while copyrights protect a wide range of original creative output, including literary, musical, dramatic, and artistic works, among others.
For instance, if you’re the original creator, all elements of your website—written content, photos, graphics, audio, and video—are eligible for copyright protection. But if you’re not the original creator of these elements and don’t have the correct legal agreements in place, you may not own the work displayed on your company’s website. In an upcoming article, we’ll look into this topic more deeply, explaining how you can protect work created for you by someone else using work-for-hire clauses. Read more
Like everyone else, you’ve probably been getting a ton of emails and online notices announcing that companies are updating their privacy policies and/or website tracking tools.
Although businesses do this from time to time as part of routine updates, practically all of the latest notices are aimed at complying with a new European Union (EU) law known as the General Data Privacy Regulation (GDPR).
Some of you probably don’t even know what GDPR is, and for those of you who do, I’m betting only a fraction of you have made serious efforts to comply with the new law.
Your company started small: just you, a computer, and your supplies in your garage apartment. And then almost overnight, you moved to an office downtown and added your first, second . . . maybe even your fifteenth employee. Or maybe you’re about to hire your first team member. Congrats on your growth! You’re clearly doing a lot of things right!
But if your company is in a growth spurt, chances are you struggle with enforcing company “rules”: rules that you have discussed with your team, but never committed to writing. Or maybe you deem these “rules” to be intuitive with no need for discussion or explanation. Like showing up on time. Or dressing professionally. Or giving advance notice if you need a half day off to get that root canal taken care of. If this describes you, read on! Read more
Thrive Law’s managing attorney, Jamie Moore Marcario was recently interviewed by David Byrd, the host of American Cafe of Voice of America. President Trump recently announced billions of dollars of tariffs against China. The president said theft of intellectual property by China was one reason for his action. But what actually is intellectual property and what constitutes piracy? Jamie breaks it down for us and explains what content creators can do to protect themselves.
You can listen by clicking play below!
This interview is an educational service of Thrive LawTM, a business law boutique. It does not constitute legal advice or imply an attorney-client relationship. At Thrive Law, we offer a full spectrum of legal services for businesses and are equipped to help you make the wisest choices about your business dealings while you’re alive and well or in the event of your incapacity or death. We also offer a Healthy Business & Creative Checkup for ongoing ventures, as well as outsourced company counsel plans for businesses who need a legal team on speed dial. Contact us today to schedule: 727.300.1990 or firstname.lastname@example.org. We cannot wait to meet you!
We get it. You’re the new biz on the block and you need help. But the thought of hiring employees freaks you out! Where will you get the money? So you hire an independent contractor (IC) instead. You pat yourself on the back. Maybe you tell your best friend, “I’m brilliant! I hired someone to do my bidding and I’m saving a ton in payroll taxes. I am the bomb!”
But what if the real bomb is that IC that’s going to explode right in your face? If you don’t engage the right IC for the right job—a mistake the IRS and the NLRB call “misclassification” — you might be on the hook for fines, penalties, back wages, overtime pay and possibly a lawsuit that could sink your business. To make sure that doesn’t happen to you, check out these pros and cons of working with independent contractors. Use them as your guide on when and how to hire them without blowing up your business.
If you’re a business owner with employees, chances are you’ve at least contemplated the idea of having them sign a “non-compete.” Today, employee agreements not to compete with the employer are the rule, not the exception. According to reports from the U.S. Department of the Treasury, about 19% of American workers—about 30 million people—are currently bound some form of a non-compete agreement. Read more
When launching a new venture, business owners are sometimes so focused on drumming up dollars that they forget to do what is necessary to build a firm legal foundation on which to build a business that is ready for and will not be rocked by unforeseen legal problems or circumstances. The most effective bedrock for building a legally strong business is to ensure you have in place 4 key legal agreements that no business should be without!
Based on our own experience and the advice of many seasoned, successful entrepreneurs, below are the four core agreements founders need from the moment that brilliant business idea becomes a reality. Read more
Many small business owners fail to realize just how valuable their intellectual property is. Yet according to some valuation experts, intellectual property (IP) makes up between 40% to 90% of the total value of many companies. So, it’s extremely important that you identify your company’s intellectual assets and take steps to protect them!
However, IP is a murky area of law, and if you’re not educated about how things like copyrights, trademarks, and patents work, you might be at a huge disadvantage. To identify and secure your IP, schedule an appointment with Thrive Law today. In the interim, here are four popular myths about IP protection that we would like to debunk for you! Read more
By Jamie Moore Marcario, Managing Attorney Thrive Law: a Business Law Boutique with Kathy Cregan, CEO Cregan and Co.
Although many progressives warned that No. 45’s tax plan would bring nothing but wailing and gnashing of teeth, the highly touted “business friendly” nature of the Republican tax bill allowed it to pass both the House and Senate, and many business owners are anxiously anticipating its effects. Known as the “Tax Cuts and Jobs Act,” the bill reduces tax rates, adjusts tax structures, and revamps tax benefits for businesses to stimulate economic growth.
No matter what your political leanings, the new tax bill includes certain elements of which prudent business owners should be aware when planning 2017’s year-end taxes and devising tax strategies for 2018. For example, as a business owner, the bill allows you to adopt tax-saving strategies like deferring income to 2018 or accelerating deductions into 2017 if your business’s marginal tax rate is likely to be lower in 2018. You can also do the exact opposite if the new bill means you’ll experience a tax rate increase or if certain tax deductions will be unavailable to you in the new year. Wicked or windfall? You be the judge.