Business law covers the entire field of law required for a business to operate. The initial legal step for any business involves business organization and choosing what type of legal entity to form. Business law also includes employer/employee issues and conforming to local, state, and federal rules and regulations.
Asset Protection and Small Business
you deal with the public, if you sell a product, if you are a licensed professional, own a business, have employees, sign contracts, are the director of a company, are a real estate agent, landlord, day care provider, consultant, or contractor then you are in a high risk profession which makes you a target for lawsuits.
Civil Law vs Criminal Law in Business
Civil liability in business arises out of the relations between a business and the people it deals with, and is governed by the laws of contract and tort. Cases against a business, for example, for breach of contract or negligence have to be taken by the people directly concerned.
In order to maintain personal limited liability, it is essential these described actions be avoided. Courts in recent years have found ever expanding reasons to hold directors, officials and shareholders personally liable for corporate responsibilities. Among other activities courts have found that may impose personal liability are improper corporate guarantees of loans or contracts benefitting an officer, timing of the sale of a controlling interest in the company for self-benefit, profiting from inside information, transactions with other businesses which may constitute conflicts of interest, unreasonable loans to company officials, and extension of unwarranted credit.
IBC Legal Entity
An Offshore Corporation or International Business Corporation (IBC) is a separate legal entity similar to a domestic incorporated company, created under the authority of a statute. The primary difference is the allowance in certain "Havens" of a tax-exempt status, in order to attract new business to their otherwise remote location. A Company is a separate legal "person" for tax reporting purposes.
If you have been injured as a result of an auto accident, slip & fall, medical malpractice or product liability, and are represented by an attorney, you may be eligible for an advance on your pending personal injury settlement. Standard practices require no credit checks or lengthy applications and you normally do not have to be currently employed.
When you have been the victim of a lawyer’s negligence in the handling of your legal matter, you may find that it is extremely difficult to find a qualified lawyer to help. Just like doctors, most lawyers are reluctant to become involved in legal malpractice claims against other members of their profession. As a result, you may speak with other lawyers who will tell you privately that you have a strong case, but that they will not handle a legal malpractice case. Legal Malpractice occurs when a lawyer fails to use proper care in the representation of a client in a legal matter, whether it be an accident case, a corporate contract, a real estate closing, or any other legal proceeding.
New Bankruptcy Bill
On March 10 the U.S. Senate, by a 74 to 25 vote, passed a bill that would significantly change bankruptcy rules. Should the bill be enacted into law, it would create the greatest change in U.S. bankruptcy law in 27 years. The House is expected to easily pass this legislation, which is part of President George W. Bush’s domestic agenda for his second term. The Senate bill contains limitations on who can file under Chapter 7 and what would be required for repayment under Chapter 13. At this time most bankruptcy filings fall under Chapter 7 but due to a recent bill passed by the Senate alot more of us will be forced into a Chapter 13. This bill will go into effect early April 2005.
Piercing the Corporate Veil
Piercing the Corporate Veil Officers, directors and controlling shareholders have a general fiduciary duty of loyalty and care which should govern all their corporate conduct. Unless they breach that duty by gross negligence or acts in bad faith, they usually will have no personal liability to third parties. Third parties have to show personal wrongful conduct on the part of a company official or director to hold them personally responsible, extra-corporate actions which would support application of the legal doctrine known as "Piercing the Corporate Veil."
Section 179 Deductions
With the Section 179 Deductions property for business has a useful life of more than one year, the cost must be spread across several tax years as depreciation with a portion of the cost deducted each year.
But there is a way to immediately receive these income tax benefits in one tax year. The provisions of Internal Revenue Code Section 179 allow a business, sole proprietor, partnership or corporation to fully expense tangible property in the year it is purchased.
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