Call Us630-665-2500

124C S. County Farm Road, Wheaton, IL 60187

Subscribe to this list via RSS Blog posts tagged in Wheaton business law attorneys

sole proprietorship, Wheaton business law attorneysIf you are considering starting a business, you have a number of important decisions in front of you. One of the most critical decisions you will ever make about your business is what type of business structure you should choose. Your business structure will determine how you pay your taxes, to what degree your personal assets are at risk, your day-to-day operations, and more. Some of the most common business structures include S-corporation, partnership, limited liability company, and sole proprietorship. Each structure has its own advantages and drawbacks and the types of structure you choose will be based on your needs and business goals. In this post, we will be discussing the benefits associated with a sole proprietorship.

What is a Sole Proprietorship?

In a sole proprietorship, there is no legal distinction between the business entity and the business owner. A sole proprietor is solely responsible for the ownership and management of his or her business and does not share ownership with other partners. A sole proprietor receives all of the business’s income but is also responsible for the business’s liabilities, debts, and taxes. The business assets are not separate from the owner’s personal assets as with many businesses.

Sole proprietorships are a popular choice for many new business owners because establishing a proprietorship is often more affordable and less complex than other types of business structures. As a proprietor, a business owner has full decision-making power over his company. Of course, with this power comes significant responsibility. If the company incurs debts, the owner may be held personally liable. A business is automatically considered a sole proprietorship if it is not registered as another type of business. If you start a business and do not register your business with the state, you must pay your business taxes as a sole proprietor. A sole proprietorship may be the right choice for you if you want to start a low-risk business or you want to test your business idea before establishing a more formal business structure. Once your business starts to grow, you may choose to restructure the business as a corporation or other business type in order to meet your evolving needs.

...

wrongful termination, Wheaton business law attorneyIf you are a business owner, you are probably an extremely busy person. The last thing you need is to deal with an employee suing you for alleged wrongful termination. Not only are wrongful termination lawsuits stressful and time consuming, they can also be extremely expensive. The average amount received by terminated employees in a wrongful termination or employment discrimination claim is just over $37,000. Most wrongful termination claims involve an allegation that the employer breached the employment contract or that the termination somehow violated a state or federal employment law. One of the best ways to avoid a discrimination suit or wrongful termination claim is to follow proper procedures when firing employees.

Make Sure All Employees Understand the Company’s Policies

Employees should be fully aware of the company’s policies regarding employee expectations, discipline, and termination. Many employers find that writing policies and procedures in a comprehensive employee handbook is one way to ensure that employees have a written record of rules and expectations. An experienced business lawyer is a tremendously valuable resource when it comes to formulating an employee handbook that gives you the best chances of avoiding a lawsuit.

Conduct Performance Reviews and Document Everything

Unless an employee has committed an especially egregious act that necessitates an immediate termination, firing an employee should be a last resort. An employee who is underperforming should be made aware of the ways in which he or she is not meeting expectations and given guidance on how to improve. Conducting regular performance reviews is a great way to let an employee know when he or she is missing the mark. Make sure you keep documentation of the dates of these reviews, what was discussed during the reviews, and how you and supervisory staff have made efforts to help the struggling employee.

...

franchise, DuPage County business lawyersThere are numerous advantages to being a business owner. For example, it can be disheartening to work for another person or company. You may feel unappreciated by your superiors or frustrated at the inefficient way you are expected to do your job. When you own a business, you get to be your own boss. You control how your business is operated and managed.

However, owning a business also comes with a great deal of responsibility and liability. You may need to spend a tremendous amount of time and resources for only marginal growth—especially at first. If you are thinking about becoming a business owner, two options you may be considering are buying a franchise or starting your own business. There are benefits and drawbacks to both of these choices, all of which should be fully researched before you make a commitment to either path.

Do You Want Input and Guidance from a Franchisor?

The most significant difference between buying a franchise location of an existing business and starting your own business is the amount of control you have over the business. While you may still have power over some day-to-day aspects of a franchise, the major decisions about business practices, operations, marketing, and accounting will be made by the franchisor. Only you can know if this type of business relationship is right for you. Do you feel capable of developing your own business model from scratch or do you want guidance and oversight from a business organization that is already successfully established?

...

selling your business, DuPage County business lawyerFor many people, owning and operating a small (or medium-sized) private business is the realization of a lifelong dream. Reaching one’s dreams, of course, does not happen without many years of hard work, focused research, and an attitude of perseverance during the difficult times. When you stop to think about how much time, talent, and treasure that you have invested in your venture, you could be forgiven for being hesitant to realize that your run with the company is nearing its end. There are a few things you should keep in mind that might be indications that you should consider selling your business.

Reason #1: You Are Losing Your Passion

When you first started your business, you probably woke up every morning excited to get to work. Building a successful business and satisfying customers were more than daily operations—they were ideals that drove and motivated you into working as hard as you could.

They say that if you love what you do, you will never work a day in your life. While this may not be exactly true, as many days certainly require hard work, things are certainly easier while your passion for your business is at its peak. As the years have passed, however, you might find that running your business feels more like a chore than ever before. If you notice that you are no longer as excited about your company as you once were, it is probably time to start thinking about how you will get out.

...

DuPage County business lawyersOne of the countless ways the internet has changed the business world is through the introduction of online crowdfunding. Through websites like Kickstarter and IndieGoGo, entrepreneurs can obtain the capital they need to begin businesses and create products. These websites are referred to as “reward-based crowdfunding” because there is generally an incentive for people to invest in the various projects. Funders may receive the actual product being developed or other benefits in exchange for their investment. Although raising capital in this manner has been wildly successful for some entrepreneurs, others have found themselves in legal trouble after becoming involved in a crowdfunding campaign.

You May Be Entering into a Contract Unknowingly

Because crowdfunding is relatively new, the legal ramifications of failed crowdfunded projects are not completely understood. Recent lawsuits against some entrepreneurs who used crowdfunding to gain resources prove that crowdfunding is not a perfect solution for those lacking start-up funds. If you wish to use crowdfunding to finance your project or business, it is vital that you understand the risks that should be avoided.

When an individual agrees to take money from people in exchange for certain benefits, he or she is likely entering into a contract with the funders. If you are not careful with the language you use to inform investors of your offer, you could be creating a contract without even realizing it. This means that when investors do not receive the benefits that they were promised, they can file a breach of contract claim against you. Forming an LLC is one way that you can help protect yourself from potential personal liability if your intended project fails.

...
Back to Top