2010 Smalll Business Presentation for HAUL
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Transcript of 2010 Smalll Business Presentation for HAUL
The LegalitiesThe Legal Issues Your Small Business and Non-profit
Should Be Aware OfPresented by: Erin McClarty Esq.
When Legal Issues Can AriseIncorporation
General Operation Issues
Advertising/ Transactions
Labor
Trademarks/Intellectual Property
Dissolution/ Winding Down
Sole Proprietorship
One person doing business
Liable for all debts
General Partnership
Group of two or more carrying on all business.
Limited Partnership
General partners have liability. Limited partners liability limited to their share.
Choosing A For-profit Structure
Choosing A For-Profit Structure
Corporation
Limited Liability Company
Limited Liability Partnership
Choosing a Non-profit Structure
Trusts
• Created by a settlor
• Very rigid in structure
Unincorporated Association
• 3 or more people come together for a common non-profit purpose
• Less formality and fewer reporting requirements than a corporation
Choosing a Non-profit Structure
Limited Liability Company
Corporations
Telephone Solicitations
Telephone Consumer Protection Act
Texas Law Enforcement Telephone Solicitation Act
Must file a registration statement and pay fee.
WebsitesPrivacy Concerns
• Have a privacy policy in place
Internet Regulations
• Children’s Online Policy Protection (COPPA)
Jurisdictional Issues
• Post “Terms of Use” on your website
E-commerce
Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM)
Governs “commercial mail”
Other Texas Laws
Criminal and civl offenses for fraud or misrepresentation
Example: Texas Deceptive Trade Practice Act
Operations
Insurance
Worker’s Compensation
General Liability
Licenses and Permits
Does your business require a certain license?
Labor
Managing Employees
Create an employment agreement
include a confidentiality agreement
Employee v. Independent Contractor
Classification is a hot-button issue
Avoid employee problems and many taxes using independent contractors.
Several Factors to determine who is an IC
Determination of Worker Status (IRS Form SS-8)
Texas workforce commission also has a test at http://www.twc.state.tx.us/news/efte/ics_contract_labor.html
IC’s make you more susceptible to IRS audits
Labor Laws
Fair Labor Standards Act (FLSA)
Department of Labor has a handbook for guidance: www.dol.gov/asp/programs/handbook/main.htm
Family Medical Leave Act (FMLA)
Texas Labor Code
Non-profit IssuesCharitable Solicitation Laws
May require registration in each state you plan to solicit in
Fill out Uniform Statement Kit at www.multistatefiling.org
Losing tax-exemption status
Unrelated Business Income Activies
1. Trade or business; 2. Regularly carried on; 3. Not substantially related to furthering the exempt purpose.
IRS Publication 557 Tax-Exempt Status for Your Organization gives guidance
How Can You Protect YourselfEducate yourself on all the applicable laws
Sign up for department RSS feeds and newsletters
Take how-to books with a grain of salt
Get together your “team”
Bring in knowledgeable people
Get what you pay for
Utilize development centers, groups and associations
Look for “Meet-ups” and Networking Groups
Why Do I Need An Attorney?
Guidance and Counsel
Sound-board
Can’t know every law
Draft or review contracts
Pre-emptive action and mitigation
Advocate and representative in case of business transactions
mediation, mergers, negotiations
But I can’t afford one…..
Be Creative
Some attorneys allow you to buy “credits”
Do package deals
Hire counsel on a contract basis
Attorney Resources
Houston Volunteer Lawyers Program
S.C.O.R.E
Houston Lawyers Referral Service
Texas Accountants and Lawyers for the Arts
Texas C-bar
Contact
Erin McClarty Esq.
www.notationsonnonprofit.com