5 Tips For The Aspiring Stay-At-Home Entrepreneur

An overhead photo of a person sitting at a white table with a laptop. Books, notepads, phones, and cups are nearby on the table.

It seems as though everyone these days has a side hustle on the side of their regular job, but having a successful home-based business comes with challenges of its own. From work/life balance to day-to-day operations of running a business from your home, there are many considerations for the successful entrepreneur: personal, professional, and legal. If you have or are thinking about starting a home-based business, our Small Business Consulting Service can help self-employed sole proprietors get their business off the ground and soaring to new heights! And our Home Based Business Add On may be right for you if you need legal advice and assistance 24/7 from experienced, dedicated attorneys: from reading contracts to making sure you get paid, having a lawyer in your pocket removes stress and lets you focus on what you do best. Learn more about this add-on to your Legal Protection Plan and read on for a few home-based business tips.

Make A Schedule & Stick To It

If it's work time, be working. If you're with your kids, be with your kids and not distracted doing something else for your home-based business. Setting office hours can help you get more done and keep your professional and personal lives separate. Don't answer work or business calls during family time and make sure your family knows when it's your work time... and stick to it!

Take Breaks

You can't run a successful business if you're running on empty, so make sure to set aside time for yourself as well as time for family and time for work. Get to bed early and take naps when you can. Nothing gets accomplished if you're not taking care of yourself.

Keep A Planner

Plan everything: meetings, calls, lunches, date nights, birthday parties, classes, vacations, goals, rest time, play time, and more. Anything and everything can be planned, and making sure you get to everything means making plans every day and sticking to them. Set goals for each day, week, month, and year. Don't think that you have to put dates with your spouse or lunch with your friends off to have a highly successful business; they just need to be planned in advance. You're working hard to be able to spend time with your family and friends!

Delegate Wherever Possible

When your business becomes more successful, consider hiring out some of the things that take up a lot of your time. Consider hiring a cleaning service to come in once or twice per week, set up an online system to make your appointments and meetings for you, or consider hiring an accountant to take over those tasks. As your business becomes more successful, you'll be able to find ways to create more time by delegating out tasks that take up a lot of time.

Networking

Your business will grow faster the more people you know, so building relationships with your clients and others you do business with will be important as your business grows. You may even find that, as you get closer to the people you interact with, that your professional and personal lives can bleed into each other a little here and there; for instance bringing your kids to a casual meeting or other event.

If you have questions about starting or managing a home based business, our Small Business Consulting Services and Home-Based Business add on may be good options for you. Make an appointment to discuss your business needs today!

How To Write A Small Business Operating Agreement

A forced perspective view from the end of a conference table, with several people seated along both sides of the table while a person writes on a white board at the far end of the table

An operating agreement is an important document that details how your business is to be run and managed, clearly stating the rules and regulations by which your business will be run. It includes the rights of partners, outside contractors, and more. While writing an operating agreement should be fairly straightforward, there are a few items that should be included that will make your business operate more smoothly. If you need help drafting an operating agreement, our small business consulting services could be right for you. Set up an appointment today to talk about your small business goals and read on for a few tips about writing an Operations Agreement.

Ownership Parameters

If your business has partners or a board, your Operating Agreement should include the names and titles of everyone involved, as well as each person's ownership percentages. In order to properly determine benefits, responsibilities, profits, losses, liabilities, and assets, this information will be essential, as these aspects are formulated using each member's ownership percentage. It will be important to get all co-owners, members, and partners to work together to create your Operating Agreement so everyone is up-to-date and is properly compensated.

Rights & Responsibilities

The rights and responsibilities of each member should be outlined clearly, including voting rights, requirements of each role within the company, salaries, and duties of each role. This section clearly details each members' role in the company. It is also where determinations are made regarding how much sway each member has in decision making that impacts the company, its members, and other stake holders.

Membership Rules

Members of your board or partners may eventually want to move on to other projects, so it is important to outline how people can leave your membership and the process for joining, as well. Having a detailed procedure in place for onboarding or offboarding members may not even seem like something that could happen right now, but the future is unknown and preparation is key to smooth transitions.

Dissolution

While it's never fun to think about the end - especially when things are just beginning - not having a plan for dissolution is a recipe for disaster. A business can close for any number of reasons, and not having a plan for dissolving the company can make for stressful situations with other members. Like other parts of your Operating Agreement, this section will detail member rights, roles, and responsibilities, but only in reference to what is to be done at the closing of the company. This section will detail who is responsible for what, how debts and assets are to be sold or distributed, and may even restrict members from opening a similar business for a certain amount of time.

Severability

This section details the protections of the agreement if any part of the agreement turns out to be in violation of a law in your state or federally. This ensures that the aspects of the agreement that are not in conflict with the law are still enforceable.

If you need help crafting an operating agreement, we are here to help! Schedule an appointment today with our business consultants to talk about your business and what you might need from an operating agreement, as well as any other questions you might have about your business.

Leasing To Multiple Tenants

A house for rent sign in the middle of a grassy lawn with stepping stones and a fence in the background

It's recently become popular for landlords to rent out single family homes to multiple tenants, particularly in college towns or places where there is a high cost of living. It's a win-win situation: landlords get a significantly higher income than they would with just a single renter and tenants save money, too. But with the addition of each tenant, the likelihood of issues increases, too. From noise complaints to property damage, the problems each renter adds can create stress, as well. If you need help setting up a rental agreement, lease contracts, or any other landlord/tenant issue, the experienced, dedicated attorneys in our network of member law firms across the country can help you with no additional fee to members of our Legal Subscription Plans. The add-on benefits from our Home-Based Business Owner's coverage and our Real Estate, Renters, & Landlord Coverage add-on can give you access to legal advice any time. In the meantime, here are a few tips for renting to multiple tenants.

Roommate Agreement

Strongly encouraging tenants to sign on to a roommate agreement can eliminate disagreements before they even start. A roommate agreement should detail rules, responsibilities, and guidelines for the shared home, including guests, utilities and bill sharing, noise, deposits, pets, parking, room allocation, common household items, food, cleaning, landscaping, and more. Roommate agreements aren't legally binding, but as the landlord, you can help enforce it.

The Actions Of One Affects Everyone

Each tenant should be made aware before moving in that the actions of one tenant could affect all the renters, as landlords can cancel lease agreements for all tenants if one tenant violates clause in the lease. This is not intended to create a hostile atmosphere with your tenants, but should be used to drive home the idea that the tenants should work together to uphold the terms of the lease.

Lease Language

A joint and several liability clause in your lease is very important. This means that each person who signs the lease is responsible for rent, and if one tenant can't pay, the other tenants will not be allowed to pay on their behalf. How the rental amount is divided is up to the tenants.

Subletting

Prohibiting subletting and AirBnBs is very important in today's fast paced world where people's lives change very quickly and often without warning. People move in with significant others or must leave town for work and they often want to solve the problem of owing rent in two places by subletting. Unfortunately, the sublettors will not be on your lease agreement, are not legally liable for the rent or property damage, and are not subject to any other terms of your lease. Plus, it can take months to evict sublettors in certain states where they may have squatters' rights.

Security Deposits

Dividing the return of a security deposit is bad idea as it can get messy quickly. If you have some renters that want to move out at the end of a lease but some that want to renew the lease, returning the security deposit can be a nightmare if it is not explicitly stated that the security deposit is refunded when all parties to the original lease move out. The same advice goes for property damage, as it can be a disaster to decide how the money should be divided. Waiting until all parties to the original lease move out to return deposits will save you headaches in the long run and, when all the parties have vacated the premises, you can leave it to the tenants to decide how the security deposit refund is divided.

Tenant Screening

If a tenant moves away, the other tenants typically try to find someone to replace that tenant right away, but no matter who it is coming in to rent your property, make sure to do a thorough background and financial check.

Renters' Insurance

While you can't require tenants to procure renters' insurance, you can certainly recommend that they get some, for their own peace of mind. Personal property can go missing or be damaged just as easily as the property itself.

Representatives

Getting your tenants to appoint a representative from among the group can alleviate miscommunication and create a consistent point-of-contact.

Make Sure Your Lawyer Reviews the Lease Agreement

The lease agreement is a complex legal document that only gets more complex as more tenants are added. Having your attorney look over your lease agreement - or, better yet, helping you draft it - can protect you, your property, and your rights before the first tenant signs on the dotted line.

Get on-demand help with your rental business from day one when you become a member of our Legal Subscription Plans with our Real Estate, Renters, & Landlord Coverage add-on and rest easy knowing that your legal bases are covered, no matter what happens. Learn more about our Legal Protection Subscription Plans for Individuals & Families, our Home-Based Business Coverage, and our Real Estate, Renters, & Landlord Coverage add-on or sign up today!

Successfully Working With A Contractor

A pair of contractors walk through a building in progress

Whether you're planning a renovation or a home repair, hiring the right contractor is extremely important. It's critical to know as much as possible about the company you're hiring to work on your house or project, getting multiple bids, preventing miscommunication, understanding any contracts, and knowing what to do if there is a dispute. Our network of attorneys through our Legal Protection Subscription Plans for Individuals & Families can help you through the entire process of working with a contractor, including going over bids, contracts, and helping you through the legal process if there should be a dispute. Learn more about all the benefits of membership and read on for a few tips on working with contractors.

The Contract

It is essential that you have a contract when hiring a contractor before work begins on your home. Get everything in writing, and make sure that your contract covers:

• A complete and thorough description of the job and the work to be done

• Pricing for the job and each part of the job

• How and when payments are to be made

• Any guarantees or warranties offered by the builder

• The dates work is to begin and end

• Signature of both parties

• Payment

As mentioned above, an important item to include in the contract is a payment schedule. An example of this might work something like: A down payment before work begins, another payment at the halfway point in the project, and a final payment at the completion of the job. Another payment schedule might be weekly payments based on work completed to date. Having a payment schedule can ensure that the work is getting completed in a timely and correct fashion.

The Right to Cancel

The FTC and some local laws allow for you to cancel work if you need to. An attorney well versed in the laws of your locality will be able to give you detailed and accurate advice regarding your rights in this situation.

Document The Work

Take pictures, keep change orders, bills, and invoices. These items will be useful to make sure the project stays on track and on time. Make sure everything has a date on it and keep your documentation in a safe place and altogether.

What If There's A Dispute

It's a sad fact that things sometimes don't work out, and if you are unhappy with the work or the work wasn't completed and the contractor won't return your calls, an attorney will be able to walk you through the legal aspects, but here are a few suggestions of things to try:

Contact Them

Be respectful, as there may have simply been a miscommunication. If they do not treat you with respect, make sure to document the call and what was said while it is fresh in your mind. If they work for a company, contact them and explain the situation.

Send a Formal Letter

Writing a formal demand letter is often enough to get the contractor back out to finish the work. If you are not comfortable writing such a letter or don't know what to say, our network of lawyers will be able to draft and send a letter on your behalf at no additional fee. Send the registered letter through the postal service to ensure delivery.

File Complaints

The Better Business Bureau, the Contractor Recovery Fund, Homeowners' Recovery Fund, and state and local agencies can help you handle a contractor who has disappeared and/or is not returning your calls.

Get Legal Advice

Our network of dedicated, experienced attorneys can write letters on your behalf, give you legal advice, look over contracts, and protect your rights, all for one low, monthly fee.

If You're A Contractor:

Sometimes, contractors who do good work and complete a job still come across clients who say they're unhappy and refuse to pay. What can contractors do if this happens to them?

Document everything from Day One on the job.

Take photos and videos before you start work, at the end of each work day, and at the end of a job. This gives you a dated timeline of the work.

File A Lien

File what is known as a Mechanic's Lien on the property. This is a guarantee of payment for contractors, so that, when a contractor performs the work and the client refuses to pay, the contractor can file a lien and demand payment before the lien is removed.

File A Breach of Contract

When the terms of the contract are met and the customer still refuses to pay, this is a breach of contract and contractors can then take the client to court for failing to uphold the terms of the agreement.

Whether you're a homeowner or a contractor, having a lawyer in your back pocket (literally, if you use our app!), protecting your rights, your property, and your livelihood is your number one priority. With our Legal Protection Subscription plans for Individuals & Families and for Small Businesses, you can protect your rights, your property, and your work for just pennies per day!

Buying An LLC

A "Yes, We're Open" banner hangs in the foreground of a shop window with an out-of-focus couple in the background

If you're interested in owning a business but aren't interested in building one from scratch, you may want to know more about buying an existing business. There are many aspects involved in buying a company – including doing research into companies you're considering, calculating what you'd be willing to pay for the business, planning funding the purchase, creating written purchase agreements – but one of the first questions you may want to ask is, what should I know before I buy an LLC? Our business consulting services and Legal Protection Subscription Plans for Small Businesses will be able to help you with the process, giving you advice on the legal aspects of your purchase while our business consulting services help you plan how to run your new company. Read on for some basics on the idea of purchasing an LLC.

Research

Finding an LLC that you are interested in purchasing may take some research, including networking with family, friends, and others about what businesses might be for sale, as business owners don't always announce that they're looking for a buyer. Conferences and tradeshows can be another place to learn about opportunities to purchase existing businesses. Your local Chamber of Commerce is another avenue to find this information.

Explore Opportunities

Once you have identified businesses that are for sale or are open to the idea, it's time to learn everything you can about the business. Find out about any issues the business may be having, look over their books, contracts, and other documentation to help you make your decision. The business will also want to learn more about you, such as proof that you'll be able to financially make the purchase. Both parties will likely want a Non Disclosure Agreement in place.

Review

Once you have all the information, make sure to give it a thorough review, sifting through banking information, credits lines and loans, taxes, any other partnerships that may exist, employment records, sales records, and more. Knowing about the business' contracts and responsibilities beforehand will give you a better picture of how the business is run day-to-day than the bottom line profit-loss statements will.

Term Sheet

Once you have made your decision on which business to buy, official negotiations begin. Compose the terms of the purchase agreement in broad strokes - it will become more detailed later - that will help you with your purchase plan and commitments from the seller and from you. As time goes on and negotiations continue, this document will become more detailed. An added advantage is that everyone involved will have the same information.

Purchase Agreement

Finalizing the deal happens with all parties sign the purchase agreement, a legally binding document that details the purchase, including the price, the terms of the agreement, what all parties are agreeing to, and any other details that impact the business, the sale, or anyone involved in the business. the document is official once everyone signs it.

Business Ownership Information

Changing over the business ownership information ensures that the business officially reflects that you are the owner. Since state laws differ regarding notification of a change in ownership, you will need to check with your state government, the IRS, and any other entities or regulatory bodies to make sure that they have updated records of the change in ownership.

While you may not need a lawyer to buy an LLC, it can make the process less stressful and may make it faster. If you have any questions regarding your purchase, with our Legal Subscription Plans for Small Businesses are available 24/7 through our app to answer any questions you may have, give you advice, and review documents, contracts, and more, all for one low monthly fee. Once you've purchased your new business, our experienced small business attorneys can help you with dozens of aspects of your new business, including debt collection, contract and document review, employment concerns, and much more! Additionally, our Small Business Consultations can help you develop a plan to grow your new business, learn marketing techniques, and learn new skills. Sign up for our Legal Protection Subscription Plans for Small Businesses today or schedule a meeting with our business consultants!

10 Legal Items For Your Small Business Website

A screen of colorful HTML source code on a black background

Whether you've had a business web site for a while or you're just starting out, industry and regulatory compliance is often one area of business web sites that gets overlooked. Mistakes can be costly when it comes to complying with laws regarding what can - and cannot - be said or done on a business web site. Improving user-friendliness, visibility, and marketing reach are all important areas of building a business web site, but your site could be violating rules  and regulations regarding plagiarism, ownership, intellectual property, and privacy without you even knowing it. Our network of small business attorneys through our Legal Protection Plans for Small Businesses can help you with the details of your web site's regulatory requirements for your specific situation, industry, and locale, but here are a few general tips:

Domain Name

Most people register their domain names on term contracts that last from one year to a maximum of 10 years, but you can also purchase a domain name outright.  Make sure that you register or buy your domain name yourself. If this is done by another party, you are essentially letting another person control your domain name, and they can sell it or hold on to it if there is a dispute.

Site Hosting

The Internet is full of sites that let people build their own web sites, DIY-style, and these are usually hosted by the company where the site is built. There are also sites that sell you hosting separately from the coding and design aspects of your site. It is important to read through any agreements before you enter into them to make certain that you will own your design and content. Make sure that you can move your site to another hosting platform if you choose; nearly all the DIY sites own the design and you will have to start over if you decide to move your site.

Trademarks

It is possible to buy a domain name that infringes on someone else's trademark. For example, you may be able to buy the domain nike.com, but using that domain may infringe on copyrights and trademarks. This particular example is avoidable, but it is still important to do your due diligence and make sure that intellectual property laws aren't broken, even unintentionally. Conversely, if you think someone else is infringing on your trademarks or copyrights, you will want to speak to a trademark attorney right away.

Privacy & Security

One of the most important things that a small business web site needs to consider is how to handle customer data, privacy, and security. Ensuring that your site meets security standards, payment processing regulations, and safe handling of customer information is one of the first things you should do. Make sure that you have a system to handle customer data, and if your site uses cookies to deliver a customized user experience, make sure to have language drafted for your site that spells out your system, process, and protocols for your customers. Reach out to an attorney to get help with the kind of language that you'll need for your site to be legal.

Compliance with FTC Guidelines

In order to limit deceptive advertising that leads to fraud and scams, the FTC has regulations put in place regarding online advertising. You'll want to make sure that you understand these rules and never make false claims, even if you don't mean to do so. Saying something like, "Number One Rated in (BLANK) Industry" can get you fined if you don't have something to back it up, such as an actual award.

ADA Compliance

There have been lawsuits recently regarding the inaccessibility of web sites under the Americans with Disabilities Act (ADA). While small businesses with fewer than 15 employees aren't required to adhere with ADA guidelines, it makes business sense to do so from the start so that your products and services are available to everyone.

Plagiarism

You will want to make sure that your content is fresh and original for a number of reasons, including ranking high in search engines. There are plagiarism checkers available for you to use to make sure that your content is original and unique. Hiring a copywriter isn't a bad idea, but make sure that you will own the content that is produced for your web site. Make sure to cite sources for any external content you use, as well. Finally, taking your own photographs is best, or you can purchase the rights to stock photos from a stock photography site.

You will put a lot of work and effort into your business, including your customer or employee-facing web sites, so it is important to get it right the first time with competent legal advice from an experienced attorney. Our Legal Protection Plans for Small Businesses gives you access to just this kind of advice for one low, monthly fee. Learn more about our Small Business Legal Protection Plans or sign your business up today!

Does an LLC Need A DBA?

A store front with an open sign in a lattice window with twinkle lights in the background

Different business structures exist for a reason, and a business owner may choose one or another for various reasons, such as the number of people employed by the company, tax purposes, organizational structure, interstate commerce, and more. Many business owners do decide to add a DBA to their LLC, and there are pros and cons both for adding a DBA and for not doing so. If you are wondering if a DBA is the right choice for your LLC or have any other questions regarding your business structure, our New Small Business Consultation & Filing Package may be right for you. We will discuss your specific situation and help you decide what business structure is right for you and your business as well as perform all the research and help you fill out the paperwork! Learn more about this service and read on for more info about LLCs with DBAs.

DBAs - also sometimes called "tradenames" or "fictitious" names - can sometimes communicate better what your company does in a way that your regular LLC name can't. DBAs can be modified to reflect your industry advertising standards or attract new customers by using a unique name that's totally different from your competitors. From a marketing perspective, adding a DBA to an LLC can be a great idea, particularly if your LLC name is clumsy, hard-to-pronounce, hard-to-spell, generic, or confusing, and you can operate multiple DBAs under a single LLC. The right DBA can help you stand out in a crowded marketplace, perhaps even letting your potential customers know that you offer something that your competition doesn't.

But do you need a DBA for your LLC? The short answer is no, but there are good arguments both for and against adding a DBA to your LLC. There are differences between an LLC and a DBA, for instance, the fees usually vary by state, county, and city, but filing a DBA is almost always less expensive than filing for an LLC, and, while LLCs have to be renewed yearly, DBAs do not.

Some cities require you to publish a notice of DBA in the local paper, and the taxes for DBA are simpler than for an LLC, as you simply report your DBA's income as your own on your personal return. DBAs can also protect your privacy in that an LLC reveals your full, legal name, while a DBA doesn't.

Conversely, a DBA is simply a brand. It does not function as a legal entity or a business structure, and it does not protect your personal assets if your business is sued. Additionally, you don't own a trademark on your DBA name, so any business, even another local one, can operate under the same name as your business which can be confusing for customers, clients, vendors, and even the government. You will also need to file for a DBA in every state where you do business individually, and this adds to your startup costs.

If you are starting a small business, getting a DBA may be right for you if you have several areas or industries that you do business in or have multiple brands to do marketing for, but, ultimately, there are no real business or tax related reasons that make a DBA necessary. If you have more questions or still aren't sure what type of business entity you need to form for your new startup, we may be able to help! Make an appointment to talk about your new small business with our New Small Business Consultation & Filing Package!

CALL OR EMAIL FOR AN APPOINTMENT TODAY!
(208) 755-8335 (M-F, 10 AM - 5 PM, Pacific Time)
debbie@debbieaferguson.com

What's The Difference Between A DBA & an LLC?

Four people sit around a wooden table with a graph in the middle. Three people point pens at various areas of the graph.

Choosing the type of business entity to form is one of the first things new prospective business owners must do. There are several types of business structures to choose from, and we've covered them a few times in this blog, but two of the most common ones are a DBA and an LLC. But what are the differences between them? Each structure has its pros and cons, and if you need help choosing which type of business entity to form, doing the research to make sure your business name isn't already taken, and filling out the appropriate paperwork, we have a New Business Filing Package that may be right for you.

What are LLCs and DBAs?

LLC stands for Limited Liability Company, and this type of business structure protects your personal assets and has some tax benefits. DBA stands for Doing Business As, and it is used if you are choosing to do business under a name that is not your - or your business' - legal name. For example, if your legal business name was Dave Jones Enterprises but you want to do business under the name Davey Jones' Locker, you would need a DBA.

The Pros of Setting Up an LLC

The biggest benefit of setting up an LLC is the personal liability protection, protecting your personal assets if your business is sued. LLCs are taxed as pass-through entities, which means that the profits and losses of the business are "passed through" to the owner's personal tax returns. LLCs also allow owners to run their businesses however you want, due to their flexible management structure, so your business can be centralized or decentralized depending on your needs. LLCs are also easy to set up and maintain.

The Pros of Setting Up A DBA

DBAs are even easier (and cheaper) to set up than asn LLC. DBAs can be appealing if you do business in multiple states as you don't need to fill out additional paperwork or pay extra fees.

The Cons of an LLC

Doing business in multiple states as an LLC means more paperwork and additional fees. Some states also require LLCs to have an Operating Agreement outlining ownership and the business' operating procedures. LLCs can also take longer to set up: you'll need to research your proposed business name through state databases to make sure that it is available.

The Cons of a DBA

The biggest drawback to a DBA is the lack of personal liability protection, so if your business is sued, you could be risking your personal assets. Not setting up your DBA properly can also mean that you are taxed as a sole proprietor, which means that you have pay self-employment taxes on your business earnings, paying both the typical employee share and the employer's share of taxes.

Which Is Best?

There is no clear verdict: it depends on what type of business you want to start and run. Each structure has its strengths and weaknesses and your personal and business situation will dictate which will work best for you.

If you are struggling to decide what kind of business entity to choose, we can help! With our New Business Filing Package, we'll walk you through each structure based on your specific situation and help you choose the right one for you and your new business. We'll do the legwork and research to make sure that your business name is available, fill out the paperwork you'll need to file with the Secretary of State, and help you get your federal and State Tax ID numbers, all for just $199! Learn more about our New Business Filing Package service, or sign up for our Small Business Legal Protection Plan today!

2022 Small Business Tax Deduction Checklist

A calculator and some pencils site atop a pile of US tax forms with a Post-It Note that reads "Need Help?"

Small business owners are already busy people, but that workload goes way up at tax time. Making sure that you're getting every tax deduction available to you is important, and tax laws and regulations are changing all the time. If you need some help navigating the new tax laws, our network of qualified, dedicated small business tax attorneys through our Small Business Legal Protection Plans can be a life saver that's within budget. Read on for a 2022 checklist for small business taxes:

Reducing Taxable Income

Tax deductions for businesses must be "ordinary and necessary," according to the IRS, which means that these are things that are common expenses for your industry and needed for you to do business. These include:

Health Care Tax Credits for Small Businesses

If you provide health insurance for fewer than 25 employees, you can deduct 50% of the costs of premiums, and smaller employers get a bigger credit than larger businesses.

Rent

You can deduct the entire cost of your rent for business use so long as you are not receiving title or equity to the property.

Depreciation

Equipment that you use day-to-day to run your business will lose value over its lifespan, and you can deduct that depreciation. You may need assistance from a CPA or tax lawyer to determine the rate of depreciation.

Insurance

Business insurance is 100% deductible.

Home Office

If you have a space in your home where you conduct business, you may be able to take a tax deduction for this square footage.

Transportation

Some professions require travel, and this includes driving time in your local area. The standard federal deduction for mileage is .58 cents per mile. You can also itemize these costs, and that requires keeping, recording, and tracking receipts of fuel, mileage (both personal and business related, if you're using your own vehicle), maintenance, parking, tolls, and more.

Advertising

Any costs related to advertising to attract business can be deducted, including marketing efforts for gaining or retaining clients. You cannot deduct the costs of lobbying.

Education

If you have paid for employee training or training for yourself, you can deduct those costs.

Office Supplies

Provided that you do not take inventory of office supplies at the beginning and end of the year, and that you do not keep records of when office supplies were used, and that taking the deduction doesn't make a huge change to your business income, you can deduct office supplies, such as printer inks and papers, writing utensils, software, cleaning supplies, and more.

Travel

Leaving town probably means additional costs, and these are calculated separately on your taxes. Fares for planes, trains, subways, rental cars, ride sharing services, taxis, hotels, food, and more are tax deductible so long as they are "ordinary and necessary," but you'll need to keep all your receipts.

Utilities

So long as you can prove that they were for business use, you can deduct the costs of your electricity, gas, heating, telephone, and more.

Costs of Startups

Some of the costs of starting your business may be tax deductible. There are additional deductions if you start an employee retirement plan.

Salaries and Benefits

You can deduct the costs of employee salaries, commissions, and bonuses.

Charitable Donations

Any cash donation made to a qualified organization can be deducted.

Business Meals

You can deduct 50% of the costs of business-related meals, both in and out of town. Employee parties and the costs involved can be deducted at 100%. Meeting or entertaining clients where you don't discuss business cannot be deducted.

Bad Debt

Any outstanding customer debt you have been unable to collect can be deducted.

Retirement

You can deduct the cost of your own retirement plan if it is qualified.

Taxes are complicated and complex, particularly when you run a small business. You have enough to worry about without adding the stress of a possible audit to it. Our Small Business Legal Protection Plans give you access to our network of qualified, dedicated small business attorneys who specialize in tax services for small businesses. Our experienced lawyers can make sure your tax documents are correct and help you avoid audits and other nasty tax surprises. Learn more about the benefits of our Small Business Legal Protection Subscription Plans or Sign Up Your Small Business Today!

Protecting Your Small Business & Preventing Lawsuits

Three people having a conversation in an office.

Small business owners are typically focused on the day-to-day operations of their companies, but lawsuits against small businesses can and do happen all the time. A lawsuit can grind business to a halt and take up valuable time, money, resources, and even your reputation. How can you protect your small business? While it's impossible to promise that your small business will never get sued, there are some steps you can take to lower your risk of litigation, and the first of these is to get a small business attorney on your side from the start. For many small businesses, keeping a lawyer on retainer isn't in the budget, but with our Small Business Legal Protection Plan Subscriptions, you, too can have the peace of mind of knowing that your legal bases are all covered. Read on for more steps to protect your small business from legal problems:

Choose the Right Business Entity From The Start

Knowing the legal requirements for setting up a business is the first thing any person who is thinking of starting a small business should do, as this is often your first line of defense for protecting yourself and your assets. There are certain legal requirements needed for each type of business entity, and you can learn more about each in our Small Business Series here at our blog.

Get Everything In Writing

Verbal or handshake agreements aren't enough to protect your small business from lawsuits. Every agreement your business enters into should be backed up in writing, the contracts reviewed by an attorney, and signed by all parties involved. These agreements can be for non-disclosure agreements, non-compete agreements, and, of course, contracts. You'll likely encounter many different types of contracts in the course of doing business, including purchasing equipment, employment contracts, vendor contracts, maintenance contracts, rental agreements, and many more. Making sure that contracts are properly prepared to be legally enforceable in your state, clearly define responsibilities and rights of all parties involved, contain proper dispute resolution, default, and termination clauses, among other items, is critical.

Understand Employment Law

If your small business will have employees or contract workers, you will need to understand the ins and outs of employment law. Consulting with an experienced, dedicated employment attorney can help you not only understand laws as they pertain to the rights of workers, but your business' rights and responsibilities, how to assemble an employee handbook with legally enforceable guidelines for employees and contract workers, unemployment, termination, and much more.

Intellectual Property Protection

One of the most complex areas of business law includes intellectual property law, which includes copyright, patents, and trademarks. Making sure that intellectual property owned by the business isn't resold by former employees, that your inventions don't violate someone else's patents or copyrights, and making certain that your branding and logos are free from infringing on someone else's intellectual property are all things that a small business attorney will be able to handle on your behalf. This includes research, preparing paperwork, and helping you address any infringement issues that may crop up over time.

Taxes

Another complex area of business is taxes. Again, a small business lawyer well versed in the ins and outs of tax law will be able to help minimize tax burdens, avoid audits, protect your personal assets, and put your mind at ease.

If the thought of your small business getting sued makes you nervous, protecting your company can be far easier than you might have imagined. Our Small Business Legal Protection Plan subscriptions can put you in contact with a small business attorney in your state who can help you navigate all legal aspects of your small business, from choosing a business entity to contracts, to debt collection, to employment issues, and much more. Learn more about all the benefits of our Small Business Legal Protection Plans, or sign up now!

When You're Short Staffed: A Brief Business Owner's Guide

A man wearing a white shirt and black apron pours champagne into rows of glasses on a restaurant counter

Millions of American business owners have heard this refrain over the past two years: "I tested positive for COVID, so I can't come to work today." With so many workers out sick while the workload piles up, business owners, managers, and other employees are burning out as they cover for those who are ill. Nearly three-quarters of packing companies reported more employee absences since the start of the pandemic. If you're having problems with staff shortages at your small business, you may find it useful to create an employee handbook if you don't already have one or update your current handbook to reflect the stressful circumstances of dealing with COVID-19. Your small business attorney through our Small Business Legal Protection Plans can help you go over your handbook to make sure that all your guidelines are legal and enforceable. In the meantime, here are a few tips for dealing with staffing shortfalls:

Help Your Staff

Some business owners are very “hands off” regarding the day-to-day operations of their businesses, but these trying times may mean that it's time to pitch in. This will show employees that you care, that you don't want them to be overworked, and that it's important that the business stays running to a certain set of standards while others are out sick.

Prioritize

If you have several employees out sick, it may be time to prioritize tasks to make sure that what absolutely must be done gets done while less important tasks are put aside for later, when you have a full staff. Make a list of tasks and decide which are the most important and which ones can wait a little bit. Make sure your team members and employees are in the loop and check off the priorities list together.

Simplify

Look into if there is technology that can lessen workers' workloads or if some processes can be automated. Ask your employees if they have any ideas for how work can be streamlined.

Hire More People

It's not always possible, but if you can, hire more employees, temporary work staff, or contractors to pick up the slack. Depending on your industry, you may be able to outsource some work to freelancers until your full-time staff can safely return to work.

Ask Employees for Input and Ideas

This not only has the benefit of finding solutions from the people who do the work every day, but it lets your staff know that you're listening and know they're struggling.

Show Your Appreciation To Present Employees

Make sure that those employees who are working every day and picking up the slack know that you appreciate them. A bonus in their paycheck is a great way to show how much you appreciate their effort.

Let Your Customers Know

Most customers will understand that you're dealing with a stressful situation when your staff is out sick. Put up some signage asking for patience and don't let unruly customers bully your staff.

If you have questions about employee rights and employer rights during the pandemic, don't hesitate to talk to your small business attorney through our Small Business Legal protection Plans. Your small business lawyer will be able to help you understand your rights and responsibilities to your employees, what your employees' rights are, and possibly help you find solutions. Learn more about all the benefits of our Small Business Legal Protection Plans or sign up now!

Small Business Cyber Security Threats: Are You At Risk?

A hand holding a black key attached to a keychain with a micro SD card attached to it.

As more of our lives - work, shopping, communication, and more - goes online, society is more and more at risk for hackers, scammers, and other fraudsters to try to access our information. The news nearly every day is riddled with stories of data breaches at companies both large and small; bad actors don't target the largest fish, they target the most vulnerable. Our Small Business Cyber Security Package may be a great, low cost solution to protect you, your business, and your customers from threats online. Learn more about our services and read on to learn about the kinds of threats and what can be done about them.

Malware

The term "malware" comes from the Latin prefix "mal," which means "bad," and a combination of the words "malicious" and "software." The word "malware" has come over the years to refer to a number of different types of fraudulent software, apps, and coding that can infect your computer, phone, network, database, or system. Most malware is introduced to computers by users downloading files or clicking on links in emails or on the Internet, inadvertently or on purpose. A big part of protecting your data is to be aware of what is clicked on or downloaded to your devices, keeping your devices updated, and training everyone who uses them what to look for. Here are a few types of malware:

Spyware

Spyware is a kind of program that is secretly uploaded to your computer while you are doing normal things on the Internet. Spyware can come from poorly vetted ads, misidentified links, and links sent via email that appear to be from someone you know and trust but are not. Spyware collects personal data, keystrokes, browsing history, and more and sends it to someone who collects it and then uses or sells it.

Viruses

Viruses are programs that infect your computer and alter its performance. Viruses can collect data that is saved on or accessed by your device and send it on to a third party.

Adware

This is a type of program that displays advertising, and it often comes packaged along with free software. While not always harmful, adware is generally not created with as much care as other parts of a program and can be susceptible to exploits or leave access points open for hackers.

Ransomware

Perhaps the most dangerous of all the types of malware, ransomware is a very effective tool for hackers because most of our lives are contained on electronic devices with access to the Internet. Ransomware can lock you out of your device, databases, systems, and more, and lock you out of systems you use to run your business. Hackers tend to target vulnerable businesses with ransomware because these businesses cannot afford to be locked out and unable to run their businesses for long. One way to protect your business from ransomware is to have an on-site backup and recovery system in place for your data and systems and to make sure that it is current and up-to-date. Limiting who can install software to machines on your network and making sure that those persons are properly trained is another great step.

Phishing

While most people think that they are too savvy to be taken in by a phishing scheme, it must be said that phishing has become so sophisticated that even experts have been fooled. The prevalence of phishing attempts has grown exponentially in the last few years, and the growing cybersecurity problem presented by phishing in time and money lost is staggering. Phishing starts when an attacker sends some form of communication - texts, an email, or a social media message - that appears as though it comes from someone the recipient trusts. The goal is to get someone to click a link or download software, or to provide logins and passwords via fake pages that look real. Caution is the biggest tool to avoid phishing schemes. If an email, text, or other communication is unprompted, seems dramatic, or seems "off" in some way, you should take the time to find out if the person really did send the link or request.

Third Party Software

It's pretty common these days to outsource some things to third parties, but this type of software can put your business at risk. Unless you have been able to make sure that the software and licensing agreements adequately protect your interests, you may be exposed to vulnerabilities. While how someone else puts their programs together may be out of your control, you should always read the terms and conditions and licensing agreements thoroughly to double check how data breaches are handled, what liability using the software opens you up to, and what kinds of remediation and restoration you’re entitled to in the event of a data breach.

Keeping abreast of changes in the technological landscape can be difficult for small business owners, particularly when you're busy running your business or aren't tech savvy. Our Small Business Cyber Security Protection Plans can help you head off problems before they start, and your membership in our Small Business Legal Subscription Plans can help you through any issues that you may already have. Our network of lawyers can assist you with simple cyber security questions to dealing with a complex cyber attack, and, starting at $49 per month, will pay for itself the first time you use it. Our network of qualified attorneys are available to help you with contracts, documents, debt collection and more for just one, low, monthly fee. Learn more about all the benefits of our Small Business Legal Protection Plans and our Small Business Cyber Security Solutions or sign up now!

Corporate Bylaws: What They Are & Why They're Important

Four people sit around the end of a table looking at a laptop

Many aspiring new business owners know that incorporating their new venture is a great first step to protecting yourself, but the corporation alone isn't usually enough. To fully protect your personal assets and interests and those of your business partners, you’ll need to create corporate bylaws that outline how your new business will be run. If that sounds complicated, you don't need to worry because our legal subscription plans for small businesses allow you to consult experienced, dedicated small business attorneys who are well versed in creating corporate bylaws to help you customize the kind of bylaws your new small business will need. In the meantime, here is a brief overview of what corporate bylaws are and how they work:

What Are Corporate Bylaws?

The direction of a corporation is done by a board who makes important decisions for how the business is run. That same board of directors will develop a set of rules and regulations that dictate the corporate or organizational structure of the business and how business will be conducted and decisions made on a day-to-day basis. Most states require that corporations have these rules - known as bylaws - but they aren't generally required to be filed with your state. That doesn't mean that corporate bylaws aren't important, as they map out visions, expectations, and rules that ease the decision-making process, and reduce conflicts over time.

What Is Included In Corporate Bylaws?

Each businesses' corporate bylaws will be different and based upon the needs of the corporation, shareholders, industry, conventions, and other members, but the best corporate bylaws usually contain rules and regulations that cover the following areas:

Statement of Purpose

This part of corporate bylaws lets the board of directors establish overall goals, aspirations, and vision for the business. It often details the type and kind of clientele or market the business will target, the reasons that the business exists (what kind of market need it fills), how the business differs from competitors, and how those goals will be reached. The Statement of Purpose is particularly important for those organizations seeking to qualify for status as a 501(c)(3) non-profit, so those kinds of entities should pay special attention to this section of the document.

Membership

The members of a corporation differ from those in an LLC in that, in a corporate structure, they are shareholders, directors, officers, and employees. The corporate bylaws should address the type of members your company has or can have, the responsibilities of each member type, the rights of each member type, the voting rights of members, and the process by which members can be removed or added. Members aren't always just individual people: other corporations, partnerships, or other entities can also be considered members under corporate bylaws.

Board Of Directors

Corporate bylaws should set forth a structure for the Board of Directors, including:

• The minimum and maximum number of board members

• The qualifications needed to serve on the board

• Board member term length

• Rules for board elections

• How meetings are called and conducted.

Corporate bylaws should also detail what is considered a quorum for meetings of the board of directors.

Officers

Officers are designated by the board of directors to deal with the day-to-day workings of the business, and corporate bylaws should define those roles, their titles, the responsibilities, and how these officers can be elected, appointed, or removed from those positions.

Stock

Issuing stock to shareholders is one of the first things a corporation does, and your bylaws should detail the type and amount of stock as well as who receives stocks, how much they get, and how that transfer takes place. Your bylaws is also where you note the differences between non-voting and voting stock for shareholder meetings.

Shareholder Meetings

Shareholder meetings are annual meetings that corporations have, and your bylaws should contain the details of those meetings: when, where, and an agenda of what is to be covered at the meetings. It should also state the number of shareholders needed to have a quorum and begin proceedings. Shareholders can also hold special meetings, and your bylaws can dictate under what circumstances these special meetings can be called.

Committees

Committees are created by boards of directors to handle special tasks or issues, and your bylaws should state the types and kinds of committees your board can create, the authority of each, and how they do the work.

Conflicts of Interest

Some board members may be involved in a number of business ventures, and your bylaws should have a section addressing potential conflicts of interest. Adding a requirement that board members must disclose such conflicts and recuse themselves from making decisions or participating in discussions over matters involving these conflicts. Not doing so risks ethical problems, and having these rules in place protects your business' reputation.

Amending Bylaws

Situations change, and including a process for your bylaws to be added to, deleted from, or otherwise changed is important. Your bylaws should detail a process by which the bylaws can be amended. This should include who must approve of the changes, what vote margins need to be met, or other benchmarks that need to be met in order to adopt the amendment.

Let Us Help With Your Bylaws

There's a lot to do when starting a new business, and crafting solid bylaws is an important first step. Getting these rules right the first time will save you time, effort, money, and stress in the long run. Our network of small business attorneys can help you draft all the documents you need to start your small business at a fraction of what you might spend on an attorney on your own. Our Small Business Legal Protection Plans start at just $49 per month, and pay for themselves the first time you use them. Learn more about our Small Business Legal Plans or sign up now!

When Should I Get Legal Help Starting My Small Business?

A group of young people stand around a desk in a modern office space while two people sit at a desk and operate a laptop

It's pretty common for small businesses to try to go it alone and not seek out help, even when help is needed. While many small businesses try to handle matters on their own, many times, it is the fear of the costs involved with bringing in professionals that prevents small business owners from seeking the help they need, particularly when it comes to legal issues. But when it comes to professional help for starting your small business, you can’t not afford to not seek out legal advice when it comes to critical issues with starting a small business, and it's a lesson that often comes too late for many small business owners. Read on for a list of crucial issues that your Small Business Legal Protection Plan attorney will be able to make easier while starting your small business, even on a shoestring budget.

Registering A Business Name

Formalizing your legal business name is the first step to starting a small business, and process is more involved than just making a logo and registering a domain name. Legal recognition of your small business means going through a process to officially register your business name with various levels of government entities. In some states, when you create articles of incorporation or organization for your business entity, you may be automatically registering your business name with your state, for example. If you intend to do business under a name that is different from your business name, you will need to register a DBA (Doing Business As) with your state. Doing business in multiple states means that you may want to protect your business name at the federal level, which means registering your business name with the U.S. Patent and Trademark Office.

All of these options mean that you have to research whether your business name is available in all of these databases, and an experienced small business attorney can help you with the process of research and registering your business name with all the relevant agencies required for your business and business structure.

Creating a Business Entity

Creating a business entity protects your personal financial assets from potential corporate debts and obligations, and while many people attempt to form and register their business entities themselves, the process may be complex and a lawyer well versed in the creation of business entities can make this process quicker and easier than doing it on your own.

Creating a business entity means choosing the right option for your business and industry. There are several options: LLCs, partnerships, LLPs, or forming a C-Corp or S-Corp. Each of these types of entities differ in both large and small ways, and which ones will be a good match for your business and business style and industry can be a complex question to answer. Without experience or knowledge in creating business entities, you run the risk of making the wrong choice for your business.

Once you choose and entity type, there is paperwork to be filled out and submitted to various government bodies, and mistakes can cost time and money, both in the long and short term. And if this seems complicated, we haven't even touched on articles of incorporation or organization and will need to be created.

Getting these early choices right is important and working with an experienced small business consultant or attorney from the beginning will save you time and money. Learn more about our New Small Business Filing Package!

Contracts

As a small business owner of any type, you will work with contracts for both internal and external reasons. Many small business owners aren't prepared with basic internal contracts and documents to start or grow their small business.

Contracts protect you and your interests, so it is important to have the right documents in place to cover all aspects and details of your business and day-to-day work. From partnership agreements to contractor agreements; from employment contracts to vendor and sales documents, it is important to have legally binding contracts written and on hand from the first day you start your business. You can't rely on templates from sites on the Internet to keep you and your assets fully covered as these types of generalized documents almost never cover state-specific needs, industry specific needs, or the specialized content you may need from your contracts based on your type and style of business.

Companies that your business will work with - rental agreements for office space, suppliers, equipment sales and repair, contracted workers - will all have contracts for you to sign, as well, and it is important that you understand what responsibilities you're agreeing to for you and your business with each one. Your network attorney under our Small Business Legal Protection Plans can look over contracts for your business and contracts given to you by businesses you work with and help you understand the terms before you sign.

Intellectual Property

Your business is built on your ideas or intellectual property, so it is important to protect that value. Your ideas and creations as well as the process and knowledge to create your work, your customer lists, skills, and branding are all intellectual property that should be protected the same way you'd protect physical property. Your intellectual property - depending on what it is - could be protected by trademarks, copyrights, or patents, and knowing which you need and the process for acquiring each can be complicated. You will want to make sure that you are getting the appropriate protection for each, and an experienced small business attorney, like those who are part of our network of legal firms, can help you navigate the process particular to your business and industry, getting you the protection you need. Registering your patents, trademarks, and copyrights means that you can take legal action should someone violate your intellectual property.

Getting Legal Help For Your Small Business Doesn't Have to Be Difficult or Expensive

Though it is tempting to try to save money by doing all of these things yourself, the truth is, you'll actually save yourself money in the long run by having a professional tackle the legal aspects of your small business. You can avoid mistakes by hiring an attorney, and our network of lawyers available to our Small Business Legal Protection Plan members offers this kind of protection at a fraction of the cost you'd pay by hiring an attorney on your own. Our Small Business Legal Subscription Plans offer you advice, document review, contract review, consultations, and more with law firms in your state. In most cases, you can talk with an experienced, dedicated attorney within one business day. Learn more about all the benefits of a Small Business Legal Protection Plan membership, or sign up your small business today!

Year End Checklist for Small Businesses

Two people sit at a table going over paperwork.

The following list is designed to help you get a good look at your business objectives and finances. It will help you understand where you have been and let you create a plan for next year full of success and growth.

Delve Into Your Financial Situation

The end of the year is a great time to make an appointment with your accountant, if you have one, but even if you manage your own finances, you can go over your reports and budgets. Compare your profits and expenses to previous years (if applicable). Go over cash flow, taxes, and pricing. Get a good look at the details and then step back for a view of the big picture. You can pinpoint problems and make a plan to avoid them or correct them in the future. Now is a good time to look at expenditures and decide where or if they need to be cut or expanded in the coming year.

Make A Budget

Your budget should be based on real expectations, so be conservative with your estimates. Using a previous year's profits as a base for your new budget and projections, you can anticipate major expenses in the coming year. Take a good look at any equipment and consider whether it will need maintenance, repair, or replacement in the coming year and include those items in a contingency in your budget. Your final product should be an accurate forecast of expenses and profits in the year to come.

Update Your Records

The end of the year is also a good time to do any housekeeping on your records so you're ready for the new year. Take the time to update employee files, get documents ready for tax filing, and compile customer data - contact information, purchase histories, etc - for marketing purposes.

Do A Risk Assessment

Another great thing to take stock of at the end of the year is your liabilities so you can determine whether you have adequate insurance to protect you, your business, and your assets. Review contracts, making sure to understand your rights and responsibilities in each one, and review your HR policies, employment regulations, and contracted employees; your attorney through our Small Business Legal Protection Plans can help you out with both of these items. Your provider law firm can also help you go over your insurance policy and any business contracts heading into the new year, and answer any questions you might have about contracts, policies, and employment.

Analyze Your Marketing Efforts

Now is a great time to take a hard look at your web site and make notes of things that need updating, changing, editing, and more. Look at your other marketing materials and tools, too. See what worked and what didn't. What advertising brought in the most new customers? If you're not collecting this type of information - where customers heard about you and your business - think about a plan to start collecting that data. Review your social media marketing and see what worked and what didn't. Schedule a meeting with your web designer and/or social media marketing expert or content creation specialist and make a plan for the new year. If you're not using the Internet or social media, the start of the year is a great time to consider how those channels may improve your marketing reach to customers and what you could be doing better or doing more of.

Enjoy Your Success

Ask yourself: "Where did my business succeed this year?" Maybe you completed a big project or landed a great new client. Thinking about everything you did right that led to your success will make it easier to replicate those successes in the future.

Consider Your Challenges

Just as it is important to look at your successes, it's just as pertinent to consider challenges, what led to them, and how you navigated through them. If you've had trouble collecting payments, a new payment policy may alleviate the issue, for example. Being proactive will help you avoid the same pitfalls next year.

Set Your Goals

Whether you want to increase customer service, launch new marketing, or bring in new products or services, making a plan now will make whatever you have in store much easier. Write out your goals and the steps you'll need to take to achieve them. Make sure your goals are concrete, realistic, and achievable. Track your progress by reviewing your goals throughout the coming year.

As always, if you have small business questions, feel free to contact us for a small business consultation where we can go over all the aspects of your business and give it a check up for 2022. Our Small Business Legal Plans can help you review contracts, policies, and other documents pertaining to your small business, and cut off any legal problems at the pass. Learn more about our Small Business Legal Protection Plans or sign up today!

Small Businesses and Cyber Security

A woman sits a desk with two computer monitors and a laptop on it.

Hackers and other online criminals target small businesses more often than people think, and the threats are only getting worse. With as many costs as small businesses already have, dealing with a cyber attack shouldn't be one of them. Our Small Business Cyber Security packages are scalable to your needs and provide vulnerability scans, remote technical assistance, an emergency help line, and Cyber Security Protection Plan providing you with up to $100,000 of liability protection for a swift recovery. Learn more about our Small Business Cyber Security Plan, or read on for a few cyber security tips:

Protect Your Business From The Dark Web

As a small business owner, you do everything you can to protect against identity theft, but the Dark Web presents its own unique challenges. The Dark Web is an online market where identity theft professionals buy and sell stolen data. Cyber criminals lurk in online places not indexed by search engines, and these hidden online spaces are the perfect place for criminals to trade in your stolen accounts information, documents, logins and other credentials, and the identities of your staff and customers. New, synthetic identities are created from both real and fictional data, and can also be purchased or sold on the Dark Web. Some criminals even offer customer service, including refunds and credit card support.

While the uses of your information by criminals is essentially unlimited, some of the most common uses are to fraudulently get loans or mortgages, obtaining lines of credit, and stealing tax refunds. A stolen credit card can be used to open several new lines of credit and accounts, including new bank accounts and buying things online.

Using the same usernames and passwords for multiple business services - and, worse, for personal use as well as business use - would allow a hacker or cyber criminal to gain access to many - if not most or all - of your accounts across various service, financial, and business-related logins. If this happens, you may spend months or even years sorting through multiple compromises of your personal and business data and private information.

It's Worse At Tax Time

While cyber security threats are a year 'round concern, it's much worse at tax time, when more specific risks are likely to occur. The IRS reports that, in recent years, there has been an increase of identity theft; in particular, hackers and other online scammers are increasingly attempting to steal W-2 information from small businesses. Generally, the criminals seek out HR and Payroll records, looking for employee data, but any manager or staff member may be targeted. A common tactic involves the criminal sending an email posing as an executive of the company, requesting a list of employees and their W-2s. These emails typically look authentic and come from an email address that will look legitimate at first glance. Taxpayers may also receive emails that appear to come from the IRS but they are actually phishing emails designed to upload harmful software to the user's computer or server. These attempts are also directed at tax professionals and accountants.

It is important to remember that the IRS never emails you, calls you, texts you, or contacts you on social media. The IRS always contacts you by the U.S. Postal Service.

It is in your company's best interests to address your cyber security plan sooner rather than later. Consider purchasing some form of cyber security, such as our Small Business Cyber Security Plan, but also think about these tips:

• Install cyber security software on all business computers and mobile devices that connect to your network

• Install a remote backup system; if your business becomes the victim of a cyber attack, this remote system will enable you to recover quickly.

• Encrypt sensitive data

• Train staff who open emails to identify "phishing" emails

• Develop a data breach response plan that includes information on how you will notify vendors, customers, staff, and other clients of the breach

• Regularly test your security systems and procedures

• Enable two-factor authentication wherever possible

Although the media tends to focus on data breaches that happen to large companies and corporations, millions of small businesses experience compromised data, accounts, and networks every year. Small business owners should never assume that their business is too small to be targeted; thieves who steal data and identities target the most vulnerable, not necessarily the biggest fish, so to speak. These increased risks mean that small business owners should take steps to prevent cyber attacks before one happens, costing you time and money. Learn more about our Small Business Cyber Security Plan or Sign Up Now!

Tax Deductions for Small Businesses

A desktop with a piece of paper that reads “tax plan” with a calendar turned to April and calculator.

When tax time comes around, business owners should be on the lookout for potential tax deductions. While businesses of all sizes have expenses, knowing which ones are legitimate write offs can be confusing, especially if you're not a pro with the tax codes in your state or the IRS. Members of our Small Business Legal Subscription Plans have access to qualified tax attorneys, and you can ask questions and get advice at tax time, or any time! While the following information shouldn’t be considered tax or legal advice, this blog post will cover some of the most common small business expenses that can be deducted on your yearly taxes.

Writing Off Expenses

The IRS says that business expenses must be "ordinary and necessary" in order to claim them on your tax return. This means that your expenses must be common for your industry and relate to the operation of your business and work performance. Once you determine which expenses you can deduct, you'll need to know which forms to use to report your expenses, and this depends on your business entity type. For instance, a sole proprietor or an LLC with a single member would report these expenses on a Schedule C form, where you report your business' profits and losses. The figure will be subtracted from your gross profits and the final amount is then transferred to your personal 1040 as business income. If you are a C Corp, you file an 1120 with the same expenses and revenues, but you also provide a balance sheet.

This process can get complicated the more expenses you have to deduct, determining which expenses qualify for deduction, and to what category they belong. Members of our legal subscription plans can get the help they need at tax time; one of our network tax attorneys is always available to answer questions.

Common Business Tax Deductions

Industries differ on which expenses can be deducted, but there are some common deductions so long as you keep good records and save receipts:

Start-Up Costs

New businesses may be able to deduct up to $5,000 of start-up costs, provided that they are related to research into creating a business, preparing for the business' launch, or creating a business entity. Start-ups can also deduct up to $5,000 each year for the first three years for costs incurred while creating an employee retirement plan.

Transportation

Some professions require some amount of driving and travel as part of the job, and these expenses can be deducted under certain circumstances. You must keep records of mileage, gas receipts, maintenance bills, license and registration fees, parking fees, and the costs of tolls. You can deduct a standard mileage rate of .58 cents per mile for business use, according to the IRS. The trick is in separating your business use from your personal use. If your vehicle is also used for personal uses as well as for your business, you will need to keep meticulous records of work use versus personal use in order to deduct these costs.

Travel and Meals

Some jobs require you to travel out of your home area, and you may be able to deduct those expenses, provided they meet certain criteria. For travel expenses, these must be:

• Necessary for work

• For the purpose of business activities

• Outside of your "tax home"

• Planned in advance

For meals, the rules are a bit more complicated. As an example, if you take a potential customer out to lunch to discuss your work, you usually can deduct 50% of the cost of the meal. Additionally, meals purchased on a business trip are usually deductible.

Rent

If your business requires a physical location, you should be able to deduct the cost of your rental space on your taxes, so long as you are not receiving equity or title to the property.

Business Insurance Costs

Most businesses have some kind of business insurance, and in almost all cases, the cost of business insurance can be deducted from your tax bill.

Advertising

Any expenses related to advertising and marketing can usually be written off, with the exception of expenses related to lobbying to influence legislation.

Education

Paying for training for employees or yourself can usually be deducted, including travel expenses related to the education.

Depreciation

Business equipment loses value over time, and you can write off the lost value of that equipment on your taxes over the life of the equipment. The IRS has some rules for this, including how you depreciate the equipment: you can choose to depreciate at a steady rate over time or take a bigger deduction within the first few years and smaller deductions later.

Office Supplies

Most consumable office goods are tax deductible so long as you haven't deducted them in a previous year.

Utilities

Costs of electricity, heating and cooling, telephones and other communication devices, water costs, and sewage costs are all eligible for deduction from your taxes so long as they are strictly used for your business and not personal use.

Health Care Tax Credits for Small Businesses

If you have fewer than 25 full-time employees, you may be able to get a tax credit if you provide health insurance benefits. This credit can be up to 50% of the premiums paid, and smaller employers get a bigger credit.

Self-Employment Tax Deduction

Working for yourself means that you are responsible for both the employer and employee contributions to Social Security and Medicare/Medicaid. This self-employed tax rate is 15.3% for incomes up to $142,800. You may be able to deduct the portion that would be the employer's portion from your net income on your income taxes.

Home Business Tax Deductions

Working from home is more common today than ever before and you may be able to deduct the costs of working from home. Sole proprietors, freelancers, contractors and others may be able to deduct the costs of a home office on their tax returns, but there are certain stipulations that must be met in order to claim them.

Home Office Deduction

While it's not as simple as just writing off the cost of your rent or mortgage, you can get a tax deduction for the space you use for work. The IRS stipulates that the space must be used exclusively and regularly to conduct business, so if you use a spare bedroom as your home office, you can deduct $5 per square foot of space or total the cost of your mortgage or rent, utilities, and other expenses and calculate the percentage of your deduction based on the percentage of your home is being used to conduct business.

Small businesses shouldn’t have to worry about IRS audits, and working with a professional tax attorney can alleviate those worries, making sure that you get every deduction and credit you're entitled to and avoiding claiming ones that you're not. Our legal subscription plans for small businesses is a great investment at tax time, and you're sure to find many reasons to use your subscription and discuss business issues with your provider attorney all year long. You can speak with a dedicated, qualified, small business tax attorney about your small business taxes and make sure that all your filings, paperwork, and documents are correct, accurate, and complete before you file. Plus, you can talk to your provider law firm about many other topics, as well, such as contracts, agreements, employment issues, and much, much more! Learn more about the many benefits of being a subscriber to our legal subscription plans for small businesses or sign up today!

Tax Deductions For Small Businesses

8 Tips For Small Business Debt Collection

A couple goes over finances with a computer and a calculator

Money is the lifeblood of any business and the loss of any expected revenue can have major consequences. Getting paid what you're due on time is important to every company, but many businesses run into customers from time to time who are unwilling or unable to pay debts. When this happens, it's up to you to collect what you're owed. It's an unpleasant situation to have to pursue people who may be in financial trouble, but there are things you can do reach a resolution regarding outstanding debt. One of the best benefits of our Small Business Legal Subscription Plans is the ability to contact your attorney for help in collecting debt and devising a debt collection strategy for your business. All of our small business plans include attorney-drafted debt collection letters on their law firm’s letterhead and sent to your debtor on your behalf. This saves you time and worry as letters from an attorney are often taken more seriously by debtors than communication from you or your business. And when the debt is paid, you get 100% of the amount recovered - our network attorneys take no commission for these services.

Traditionally, there have been three main ways for small businesses to collect a debt: doing it yourself, hiring a collection agency, or work with a debt collection attorney. Going the do-it-yourself route to collect on a debt owed to your business may be a good way to go if client relationships are important to you or if you only have a couple of debts to collect. Hiring a collection agency may be a good way to go if you have a large number of delinquent accounts from debtors who are hard to track down, but collection agencies often take up to 50% of the amount recovered as part of their fees and aggressive tactics sometimes used by collection agencies may reflect poorly on your brand. Hiring an attorney specializing in debt collection is often a quick way of getting delinquent accounts paid and maintaining a customer-friendly brand. And since our Small Business Legal Subscription Plans start at just $49/month with debt collection services included, it’s affordable, too!

When your business is owed money, regardless of the method you choose to collect on the debts, there are some tips for legally collecting money owed to you:

Don't take it personally

Late payments can often be caused by simple forgetfulness and getting emotionally invested in the problem can often escalate a simple oversight into a true dispute. Contact the client or customer to let them know about the late payment; most people are happy to rectify the problem promptly.

Get In Contact Early and Stay In Contact

Reach out to the debtor as soon as possible and remind them of their obligation. Continue to reach out regularly if the payment isn't made right away. Contact can be made via email, telephone, texts, or mailed letters, but don't get too carried away. Anything beyond a single contact in a billing cycle could be considered as harassment. Your messages should be professional and never threatening.

Document, Document, Document

Keep copies of all letters you send, make records of every call you make, and screenshot texts and emails for your records. If the matter should need to be referred to a collection agency or an attorney, your records will go a long way to establish your case.

Try To Set Up A Payment Arrangement

Most people aren't trying to shirk their responsibilities, but financial difficulties sometimes make full payments impossible. Businesses are entitled to seek full repayment, but relationships with clients and customers can often be preserved by working with the debtor to agree to a payment plan on what's owed. You might agree to lengthen the repayment period or to accept partial payments on a schedule until the debt is paid off. Make sure to get the terms outlined in writing.

Maintain Your Resolve

You may choose to be flexible about repayment, but you should never let debtors tug at your heartstrings to get out of paying the debt. Again, any agreements made regarding lowering the amount owed or accepting partial payments should be put in writing.

Send Demand Letters

All actions taken in the process of collecting a debt should be put in writing or recorded in some way for your records. Demand letters notify your debtor of the amount they owe and any potential legal action that might be taken in order to collect the debt. These letters should convey your seriousness about collecting the money owed you and provide a record of attempts made to collect if you need to escalate the matter.

Hire A Collection Agency

When all your attempts to collect a debt have failed, you may want to consider hiring a collection agency. Collection agencies are professionals at drafting demand letters and have employees and staff to call debtors so you can focus on running your business. Collection agencies don't work for free and some businesses are uncomfortable working with an industry with the collective reputation that collection agencies have.

Work With An Attorney

An alternative to hiring a collection agency is to work with your attorney to seek repayment from debtors. Much like a collection agency, your attorney will take over the work of contacting those who owe you money by making calls and drafting letters on your behalf, and these contacts are often taken more seriously by debtors, as they carry the weight of the experience of your attorney's legal expertise and background, as well as the possibility of further legal action if the debt remains unpaid.

Businesses considering legal action for debt collection purposes should know that the court process can be both expensive and time consuming, as well as keep you from the day-to-day details of running your business if you have to appear in court. Winning a court case against someone who owes you money also means that you still have to collect from someone who has not paid you thus far. The upside of winning a collections court case is that you now have more options for collecting what you owe. The judge can choose to put a lien on property, or order a writ of execution that garnishes wages. The debtor may have to liquidate assets to repay debts if they are in bankruptcy or work with the court to create a repayment plan that will be enforced by the court.

Learn more about how your attorney, through your Small Business Legal Subscription Plan, can help you collect debts both in and out of court or sign up today!

Your Small Business Just Got Sued. Now What?

Close up photo of a judge’s gavel

Small businesses, just like any other business, try to avoid lawsuits. Lawsuits against small businesses can damage reputations, take up your valuable time, and can be very costly. Most business owners do everything they can to protect their businesses from legal issues, but sometimes, it can't be avoided.

Regardless of the reason your business has been sued, taking the matter seriously from the beginning can help you avoid significant consequences, and contacting an experienced small business attorney who is experienced in handling lawsuits and legal matters as they pertain to small businesses should be your first step.

While many small businesses don't have the budget to keep a small business lawyer "on retainer," our Small Business Legal Subscription Plans give you and your small business access to qualified, dedicated, experienced legal counsel and can help save you time and money in the long term.

Lawyers can help you better understand the case

Understanding legal procedures such as process service, statues of limitations, the arguments of the case, and the legal system itself, among many other details, are things where the average person or small business owner usually doesn't have much experience. Attorneys can walk you through these details and potentially minimize costly consequences stemming from the case. Trials can be expensive, and an attorney may be able to help you get the case dismissed without a trial or to negotiate a settlement or other outcome that helps you avoid court and the costs involved.

Lawyers can help you get organized

Gathering, keeping, and preserving all records relevant to the case will be essential, and attorneys are experts at reviewing contracts, emails, documents, and other records that may be useful or important in your case. Lawyers can also give you legal advice and answer any questions about the case that you may have.

Should You Settle?

You might be inclined to fight the case, especially when you have done nothing wrong, and your attorney will be able to give you advice as to whether it is worth it to fight in court. Settling may ultimately save you time, money, and stress by putting the matter behind you. In some cases, it may be worth the costs of going to court, and your attorney will be able to advise you of your options, detail the pros and cons of those options, and advise you on what next steps to take.

Be Honest and Detailed With Your Attorney

Avoiding some facts of the case with your attorney won't help you, even if those facts don't necessarily present your business in a good light. Your attorney will need to know all the details and review all the documentation of the case - emails, letters, calls, texts, contracts, etc.). Don't try to hide anything. Ask your attorney all the questions you have and be as detailed as possible when discussing your case with your attorney.

Don't Talk About Your Case With Involved Parties

Anything that you say can be used in court, and you may be past the point of settling the dispute without legal intervention. Once attorneys get involved, it is a whole new ballgame.

Don't Ignore The Lawsuit

It's not going to go away on its own, so act immediately. The clock starts ticking on your time to respond to the suit as soon as you have been properly served. Regardless of how frivolous or erroneous the lawsuit may seem, it is imperative that you take the matter seriously and contact your attorney as soon as possible to preserve your business' reputation.

Don't Try To Handle It Yourself

Some cases require representation by an attorney, and even if you are allowed to represent yourself, it is almost never a good idea as a mistake can lead to disastrous consequences.

You Don't Have To Go It Alone

Never give up rights because it seems that fighting a lawsuit will cost too much, be too much trouble, or take too much time and effort. Subscribing to one of our Small Business Legal Subscription Plans will give you access to qualified small business attorneys in your area who can not only guide you if your small business gets sued, but can also help with day-to-day legal issues that are specific to small businesses, such as contract review, employment concerns, protecting intellectual property, patents, and much, much more! Learn more here or sign up today to protect your business!

Worker Classifications - What Small Businesses Need to Know

Photo shows a pair of workers on a busy construction site

Misclassifying workers as independent contractors when they should be classified as employees can have serious financial and legal ramifications for businesses of all sizes. In 2017, the hardware chain store, Lowes, settled a $2.8 million worker classification lawsuit which claimed that Lowes had improperly classified installers as independent contractors when they were actually employees, and that this misclassification caused workers to miss out on workers' compensation benefits, liability insurance, and caused the workers to pay employment taxes that they shouldn't have been responsible for.

There are distinctions between independent contractors and employees, and the following points can help small businesses understand these differences.

The IRS has four worker classifications:

Independent Contractor - An independent contractor controls the kind of work they do, where they complete the work, and how the work is completed. The business that hires an independent contractor only controls the result or product. The business may set deadlines; businesses cannot set specific working hours.

Employee - If a business controls where, when, what, and how work is completed, then the worker is an employee.

Statutory Employee - Some workers who would normally be independent contractors can sometimes still be considered an employee by the IRS:

• Workers who work from home under specific instructions, with materials or tools provided to them by the business that must be returned to the business;

• Food and beverage delivery drivers (milk excluded);

• Commissioned laundry and dry cleaning drivers;

• Insurance agents working primarily for one life insurance company selling life insurance or annuity contracts;

• Full-time traveling salespersons submitting orders directly to the business from other businesses or wholesale establishments.

Statutory Nonemployee - Some statutes deem some workers who would otherwise be considered employees as nonemployees, and includes:

• Direct sellers and real estate workers who are not paid on an hourly basis;

• Companion sitters (private duty nurses and home health aides) not employed by a placement service.

It can be difficult to determine how to classify some workers in some circumstances.  The IRS provides a form you can complete and send to them that allows the IRS to determine a worker's classification. The form, called Form SS-8, can be downloaded from the IRS web site and includes detailed instructions for filling it out; however, it can take the IRS up to six months (or more) to get back to you. Your Small Business Legal Subscription allows you to bypass this process and consult your attorney for advice on proper worker classification.

State Regulations

Some states may classify workers differently than the IRS. It is extremely important to understand your state's regulations and how they impact your worker classification for your industry.

As you can see, being able to contact a dedicated, experienced employment lawyer can be priceless when navigating employment classification, and with our Small Business Legal Subscription plans, you, too, can have a small business lawyer "on retainer" for advice, questions, contracts, and more! Learn more here or sign up today!