But which legal form is right for your business?

And should you even incorporate at all?

Read on to find out.

Should You Incorporate?

When you’ve been doing business for a while, incorporating may seem like the logical next step.

But incorporation isn’t just a milestone to check off your list, it’ll also change the way you run your business and increase your business expenses. It makes sense to take a critical look at your business and carefully consider whether incorporation actually makes sense for you.

There are many advantages to incorporating. The most obvious is enhanced credibility for your brand. Incorporation also provides less glamorous, albeit more practical benefits, such as tax advantages and personal asset protection. The trade-off is enhanced scrutiny and the need to comply with federal and state legislation.

Corporation or LLC?

Both corporations and LLCs are separate legal entities, which enjoy certain advantages and legal protections. When you incorporate your business, it becomes a legal person in its own right. It can sue and be sued in its own name, and its assets and liabilities are completely separate from yours.

However, corporations and LLCs enjoy different benefits and protections under the law.

Corporations have significant tax advantages. It’s possible, for instance, to deduct a corporation’s business losses from your personal tax return, including startup costs. A corporation can also provide considerable savings on Social Security and Medicare taxes. That said, corporations must have a set management structure, and unless your business is a certain size, this may not be feasible.

LLCs offer the same major benefits as corporations, including safeguarding your personal assets, but don’t have the same extensive tax advantages. The flipside is that the management structure is more flexible. This makes an LLC a better choice if you own a small business.  Depending on your state, there may be a wide range of differences in fees for the LLC and the corporation.

Are you thinking of incorporating? Reach out to Bosserman Law at (662) 890-9558 for a consultation.

The post LLC or Corporation: Which Legal Form is Right for Your Business? appeared first on Kelly Bosserman Law.

There are also plenty of things that keep you up at night.

One of those sleep-depriving concerns is the fear of being sued. Even a modest lawsuit can rack up expensive legal bills that can severely harm a small business – perhaps force it into bankruptcy.

At the risk of minimizing the serious nature of a lawsuit – and pardon me for grasping for a sports metaphor, but – sometimes the best defense is a good offense.

Take proactive steps to help your business avoid finding it situations that can lead to lawsuits. The big headline is pretty obvious: do things right, treat people properly and try to rectify any problems swiftly.

Beyond that, here are a few helpful and specific things you can do to avoid lawsuits and to give yourself the tools you need to resolve lawsuits quickly should you face one.

Document Everything

Most legal actions that occur against small business generally concern some manner of contract or agreement dispute. The solution: take copius notes of all discussions and ensure all contracts are signed and witnessed.

Create an Employee Handbook

It’s difficult to hold employees accountable for their at-work actions if you have no document that establishes what their actions should and should not consist of. When you give a new employee a handbook, don’t forget tip number one: sign a document that states that your employee received and read their handbook!

Understand Intellectual Property Laws

Companies covet their logo, tagline and associated branding. And rightly so! Take a moment to study your logo imagery and ensure it does not violate any existing trademarks.

To compare your company’s logo and branding imagery with existing copyrighted material, you can do a quick search of the U.S. Patent and Trademark Office website.

Properly Maintain your Workspace

The likelihood of injury lawsuits from customers and employees can be dramatically reduced by taking a few common sense but vitally important steps toward maintaining your environment.

Keep walkways clear and free of debris, standing water or ice.

Ensure that storage rooms are stocked carefully to minimize spills or falls.

Fill parking lot potholes and keep outdoor spaces clean, safe and well-lit.

Communicate

Many times, the most effective tool you can employ to avoid a potential lawsuit is an open and frank conversation. A conversation regarding the issue may be uncomfortable, but it will certainly be less expensive and time-consuming than resolving a lawsuit.

Don’t lose sleep over things you can control. Take these steps to help your company avoid a lawsuit. For more tips – or for advice and representation in the event your business is sued – contact us today at Bosserman Law.

The post Getting Sued Can Be Big Trouble for Small Businesses. appeared first on Kelly Bosserman Law.