Are you keeping meticulous corporate records?

Improper corporate record keeping can cause problems with the IRS, hamper your ability to raise equity capital and could result in personal liability. Yet, entrepreneurial businesses are notorious for overlooking basic corporate records. Failure to document meetings of the Board of Directors and shareholders, failure to record stock issuances and to document stock transfers, and failure to approve material corporate transactions outside the ordinary course of business are common infractions of the guidelines that protect the legal status of your corporation or LLC.

Widely-publicized cases of misuse of corporate funds have courts “piercing the corporate veil,” or disregarding the corporate entity and holding founders and shareholders personally accountable for claims directed against the company.

Keeping proper corporate records is a solid way to prove that your business is real and valid, and not just a monetary shelter for shareholders.

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Do you have intellectual property you need to protect?

Have you considered whether you should protect your corporate name or the name of your products or services by filing for a trademark or servicemark? Will you invest a significant amount of money promoting your business name, or service or product name, only to be prevented from using it because it infringes on another business' protected name? Are you developing products or methods for which you will need patent protection? We can help you determine if you should consider these issues, research possible infringements and help you make the filings necessary to protect your intellectual property.

Are you making legal mistakes that can shut your business down? Learn about 7 Deadly Legal Mistakes that cost entrepreneurs thousands. Visit www.7deadlylegalmistakes.com and learn how to save thousands on legal fees.

Getting into bed with someone...professionally speaking?

In the last month, we've fielded no fewer than five calls from entrepreneurs who were desperate to get out of problematic business partnerships.

Problems have ranged from partners not putting up their fair share of "sweat equity", divergent viewpoints on business direction, partners who disappeared and went incommunicado, to one instance where a minority partner was removed by the majority partners from an LLC without notice or a meeting of the members.

Thankfully, most of these issues settled amicably, but two are heading to litigation, a costly and time consuming endeavor.

A business partnership is fraught with uncertainty and risks that you might not be aware of. Have you considered what would happen to your business if a partner dies, becomes disabled, gets divorced or goes bankrupt? What if a partner wants to withdraw from the business or sells his or her equity in the business to someone you didn't want, or expect, to be partners with? What if a partner prevents you from selling your equity in the business? Have you considered who will have control over major business decisions or what may happen to your business if you and your partner have equal control and you have a stalemate on a major decision? No matter what legal form your business is in (corporation, partnership or limited liability company), business partners must have an agreement which protects the business and each partner from these uncertainties and provides a framework for how these situations may be resolved.

Are you making legal mistakes that can shut your business down? Learn about 7 Deadly Legal Mistakes that cost entrepreneurs thousands. Visit www.7deadlylegalmistakes.com and learn how to save thousands on legal fees.

QuickTip. Staying out of hot water as a creditor in bankruptcy

PRE-FILING

• Require COD or advance payment or retainers for client projects. • Keep open communications with your customers about their ability to pay. Terminate service as far in advance of filing as possible if they get too far behind on payments.

POST-FILING

• Call a lawyer immediately. Set up a consult, which is usually free, and assess your options.

• Cease all collection activity.

• Consider setting aside any of the debtor's "past due" payments received within 90 days of their filing.

• If you are a party to an executory contract, continue to perform until advised otherwise by counsel.

• File your "Proof of Claim", the document that proves that the debtor owes you money. If you don't file timely, you will be barred from collecting what's owed to you.

• Legal representation can cost $10,000+ for creditors. To save on legal fees, consider teaming up with one or more other creditors to retain counsel jointly.
Are you making legal mistakes that can shut your business down? Learn about 7 Deadly Legal

Mistakes that cost entrepreneurs thousands. Visit www.7deadlylegalmistakes.com and learn how to save thousands on legal fees.