Legal Guide for Starting & Running a Small Business

by Fred S. Steingold Attorney, David Steingold Attorney

Overview

From opening day to tax day, this is the all-in-one book you need!

Small business owners are regularly confronted by a bewildering array of legal questions and problems. Ignoring them can lead to disaster -- but with lawyers typically charging $150-$250 an hour, calling one to answer routine legal questions can be a fast track to the poorhouse.

Fortunately, you have a better alternative. Legal Guide for Starting & Running a Small Business clearly explains the practical and legal information you need to:

• raise start-up money
• choose between a sole proprietorship, partnership or LLC
• get licenses and permits
• buy or sell a business or franchise
• negotiate a favorable lease
• insure your business
• hire independent contractors safely
• understand small business tax rules
• pick and protect a good name
• resolve legal disputes
• adopt the best customer policies
• enter into strong contracts
• cope with financial problems

The 8th edition is completely updated and revised to provide the latest regulations, tax numbers and business realities. It also provides expanded information on preparing a business plan, a summary of the new overtime pay rules, changes to home business tax rules -- and much more.

Product Details

ISBN-13:	9781413326147
Publisher:	NOLO
Publication date:	04/12/2019
Sold by:	Barnes & Noble
Format:	eBook
Pages:	456
File size:	14 MB
Note:	This product may take a few minutes to download.

About the Author

Attorney Fred S. Steingold practices law in Ann Arbor, Michigan. An expert on small business law, he represents and advises many small businesses and frequently leads seminars on how to start and run small businesses. He is the author of Legal Guide for Starting & Running a Small Business Vols. 1 & 2 and The Employer's Legal Handbook. His monthly column, The Legal Advisor, is carried by trade publications around the country.

Read an Excerpt

Which Legal Form Is Best for Your Business?

When you start a business, you must decide on a legal structure for it. Usually you'll choose either a sole proprietorship, a partnership, a limited liability company (LLC) or a corporation. There's no right or wrong choice that fits everyone. Your job is to understand how each legal structure works and then pick the one that best meets your needs. The best choice isn't always obvious-after reading this chapter, you may decide to seek some guidance from a lawyer or an accountant.

For many small businesses, the best initial choice is either a sole proprietorship or-if more than one owner is involved-a partnership. Either of these structures makes especially good sense in a business where personal liability isn't a big worry-for example, a small service business in which you are unlikely to be sued and for which you won't be borrowing much money. Sole proprietorships and partnerships are relatively simple and inexpensive to establish and maintain.

Forming an LLC or a corporation is more complicated and costly, but it's worth it for some small businesses. The main feature of LLCs and corporations that attracts small businesses is the limit they provide on their owners' personal liability for business debts and court judgments against the business. Another factor might be income taxes: You can set up an LLC or a corporation in a way that lets you enjoy more favorable tax rates. In certain circumstances, your business may be able to stash away earnings at a relatively low tax rate. In addition, an LLC or corporation may be able to provide a range of fringe benefits to employees (including the owners) and deduct the cost as a business expense.

Given the choice between creating an LLC or a corporation, many small business owners will generally be better off going the LLC route. For one thing, if your business will have several owners, the LLC can be more flexible than a corporation in the way you can parcel out profits and management duties. Also, setting up and maintaining an LLC can be a bit less complicated and expensive than a corporation. But there may be times a corporation will be more beneficial. For example, because a corporation-unlike other types of business entities-issues stock certificates to its owners, a corporation can be an ideal vehicle if you want to bring in outside investors or reward loyal employees with stock options.

Keep in mind that your initial choice of a business form doesn't have to be permanent. You can start out as sole proprietorship or partnership and, later, if your business grows or the risks of personal liability increase, you can convert your business to an LLC or a corporation.

For some small business owners, a less common type of business structure may be appropriate. While most small businesses will find at least one good choice among the four basic business formats described above, a handful will have special situations in which a different format is required or at least is desirable. For example, a pair of dentists looking to limit their personal liability may need to set up a professional corporation or a professional limited liability company (PLLC). A group of real estate investors may find that a limited partnership is the best vehicle for them. These and other special types of business organizations are summarized in Section F at the end of this chapter.

You may need professional advice in choosing the best entity for your business. This chapter gives you a great deal of information to assist you in deciding how to best organize your business. Obviously, however, it's impossible to cover every nuance of tax and business law that applies to your business. This is especially so if your business has several owners with different and complex tax situations. And keep in mind that especially for businesses owned by several people who have different personal tax situations, sorting out the effects of "pass-through" taxation (where partners and most LLC members are taxed on their personal tax returns for their share of business profits and losses) is no picnic, even for seasoned tax pros. The bottom line is that unless your business will start small and have a very simple ownership structure, before you make your final decision on a business entity, you'll want to check with a tax advisor after learning about the basic attributes of each type of business structure from this chapter and Chapters 2, 3 and 4.

Table of Contents

	Introduction
	Chapter 1: Which Legal Form Is Best for Your Business?
	Chapter 2: Structuring a Partnership Agreement
	Chapter 3: Creating a Corporation
	Chapter 4: Creating a Limited Liability Company
	Chapter 5: Developing a Buy-Sell Agreement
	Chapter 6: Naming Your Business and Products
	Chapter 7: Licenses and Permits
	Chapter 8: Tax Basics for the Small Business
	Chapter 9: Raising Money for Your Business
	Chapter 10: Buying a Business
	Chapter 11: Franchises: How Not to Get Burned
	Chapter 12: Insuring Your Business
	Chapter 13: Negotiating a Favorable Lease
	Chapter 14: Home-Based Business
	Chapter 15: Employees and Independent Contractors
	Chapter 16: The  Importance of Excellent Relations
	Chapter 17: Legal Requirements for Dealing With Customers
	Chapter 18: Cash, Checks and Credit Cards
	Chapter 19: Extending Credit and Getting Paid
	Chapter 20: Put It in Writing: Small Business Contracts
	Chapter 21: The Financially Troubled Business
	Chapter 22: Resolving Legal Disputes
	Chapter 23: Representing Yourself in Small Claims Court
	Chapter 24: Lawyers and Legal Research
	Appendix A
	Appendix B
	Index

Interviews

This easy-to-read book provides a vast amount of information about starting and running any kind of small business. It is the product of the authors’ decades of experience as both business attorneys and writers on business law topics. The book is filled with useful forms, relevant examples, and simple explanations of complicated subjects. jects.

Editorial Reviews

A nuts and bolts legal guidebook that answers questions that continually come up in running a small business in todays competitive environment. Written in plain English.

Business Life Magazine

Most entrepreneurs can't afford to call their lawyer every time a legal question comes up. The Legal Guide for Starting & Running a Small Business is a cost-effective solution.

Success Magazine

An unusually helpful approach to the start-up process, covers a lot of basics, from negotiating a lease to representing yourself in small claims court.

Inc. Magazine

This fourth edition answers routine legal questions--allowing small-business proprietors to avoid exorbitant legal fees. Topics include raising start-up money, insurance, hiring independent contractors, and understanding small business tax rules. Includes recommended further reading. Annotation c. by Book News, Inc., Portland, Or.

Booknews

You won't find better up-to-date professional counseling in a handy, easy-to-use and understand reference.

San Francisco Examiner

"An unusually helpful approach to the start-up process covers a lot of basics, from negotiating a lease to representing yourself in small claims court." Inc. Magazine

"Get a basic understanding of small business legal issues... [with] this excellent resource..."The Wall Street Journal

"Pick up a copy of Nolo's Legal Guide for Starting & Running a Small Business...." Seattle Post-Intelligencer

“Balances its wealth of reproducible documents with straightforward ‘how-to’ instructions and advice...” The Bookwatch

“...exceptionally valuable, with forms and contracts written in straightforward language.” American Reference Books Annual

“Provides instructions for completing the contracts required when forming a corporation, borrowing money, buying a business, leasing an office, hiring employees and selling goods.” Reference & Research Book News

"Whether just starting a small business, or already engaged with a business is already up and running, legal questions crop up on an almost daily basis. Ignoring them can threaten any enterprise — but hiring a lawyer to help with routine issues can devastate the bottom line. Now in a fully updated and expanded 15th edition, & The Legal Guide for Starting & Running a Small Business by Attorney Fred S. Steingold (who practices law in Ann Arbor, Michigan and is an expert on small business law, representing and advising many small businesses) includes how to: raise start-up money, decide between an LLC or other business structure, save on business taxes, get licenses and permits, choose the right insurance, negotiate contracts and leases, avoid problems if you're buying a franchise, hire and manage employees and independent contractors, attract and keep customers (and get paid on time), and limit personal liability while protecting personal assets. Including the latest legal information and tax rules for small businesses, The Legal Guide for Starting & Running a Small Business is an ideal and practical reference for the sole proprietorship, or an LLC or corporation, or a one-person business operating out of their home, or a company with a large staff leasing space. Thoroughly user friendly in organization and presentation, and very highly recommended for company, community, and academic library Business Management collections, & The Legal Guide for Starting & Running a Small Business is the next best thing to having a personal attorney on retainer. "Midwest Book Review, James A. Cox, Editor-in-Chief

From the Publisher

Anybody in business might want a book like The Legal Guide for Starting & Running a Small Business on their shelf.

The Herald Tribune

The comprehensive Legal Guide for Starting & Running a Small Business... explains just about everything you (or your entrepreneurial clients) need to know about getting your new venture underway.

Accounting Today

Pick up a copy of Nolo's Legal Guide for Starting & Running a Small Business.... It's a great resource.

Seattle Post-Intelligencer

This book is ideal for novice and even seasoned entrepreneurs. It will navigate you through the many legal concepts and procedures that affect small businesses.

Newark Star-Ledger

One of seven small business books recommended by the Seattle Public Library.

Seattle Times

Get a basic understanding of small business legal issues... [with] this excellent resource....

The Wall Street Journal