Like their larger counterparts, small businesses require legal counsel to safeguard their interests. Preventing, responding to, and defending possible legal claims are critical to a small business' growth. Shehu Legal has the knowledge and skills to keep your company on track for future success.
As a small business owner, you have a wide range of legal responsibilities, including structuring your company, handling employment disputes, responding to customer complaints, complying with a myriad of state and federal regulations, and hiring legal counsel to defend claims. Retaining a competent small business lawyer will enable you to delegate the legal side of your operations so you can focus on growing your business.
"Forming, owning, and operating a small business means complying with various state and federal regulations. Let Shehu Legal offer a customized solution so you can focus on growing your business."
What is Small Business Law?
Setting up a business involves complying with both Connecticut and federal law. You must structure financing, decide the entity type, apply for an EIN, and buy or lease a location. Some businesses have trade secrets, unique logos, or original methods that must be protected with a trademark or copyright. Any new business requires competent counsel at an early stage of development
When Do You Need a Small Business Lawyer?
Let's see how our attorney can help you throughout your business journey.
Deciding Your Business Entity
When laying the foundation of your business, you must decide how to structure your company. The type of legal entity is based on taxation and liability considerations.
- Sole-Proprietorship: A sole-proprietorship is the simplest and easiest option to start a business. There is no distinction between the business and the owner in a sole-proprietorship. You are entitled to all business earnings and are personally liable for all debts, losses, and obligations incurred by your firm.
- C-Corporation: In a C-corporation, the business and owners are treated separately for taxation purposes. That means you're responsible for paying personal income tax and business income tax.
- S-Corporation: Most S-corporations are tax-exempt business entities. A federal return (Form 1120-S) is filed, but no corporate income tax is paid. Instead, unless specifically elected to be taxed as a C-corporation, the company's income "passes through" to the owners. The owners claim the business' profits on their personal tax returns. Many businesses establish themselves as S-corporations to avoid double taxation.
- LLC: A limited-liability company limits an owner's liability to his investment. This option is open to partnerships and sole owners. In most cases, the company's income is claimed by the owners on their personal tax returns.
Besides paying taxes, a registered business entity must adhere to additional requirements, such as holding annual meetings, maintaining shareholder stock or units, recording minutes, etc. Again, experienced and knowledgeable legal counsel can help you decide the best entity for your individual circumstances and outline your personal and business responsibilities.
Lawsuits and Insurance Defense
Let's face it. A lawsuit from a disgruntled customer or previous employee is always a possibility. In these situations, you need the help of a small business lawyer. Attorney Shehu has defended claims under commercial general liability insurance policies. He has obtained favorable results for small and medium-sized businesses.
Businesses buy insurance policies to cover themselves against the risk of losing everything they've worked so hard to build and maintain. Occasionally, an insurance carrier will deny a legitimate claim without justification. This is known as "bad faith" claims handling. Shehu Legal has litigated insurance coverage issues on behalf of policyholders.
Whether you need legal defense pursuant to an insurance policy or your insurance carrier has denied coverage, you need Shehu Legal. We can help you determine the appropriate legal course of action.
Trademark and Copyright
Your business is unique, and its name should be as well. A copyright can ensure that no competitor steals your name or makes money off of your reputation. Likewise, if you have unique branding that readily identifies your product or services, you need trademark protection to deter infringement.
Contract Drafting
If your product or service doesn't meet the prescribed terms and conditions, you may face legal ramifications. Therefore, careful contract drafting that precisely defines each party's duties and obligations is essential to preventing future claims and lawsuits.
Acquiring Licenses and Permits
Many businesses require a license or permit to begin operations. States and local jurisdictions often outline licensing and permit requirements online. However, state and local business law is not concrete, and these lists may be outdated. If you're unaware of every requirement, your business may be fined or closed permanently. Shehu Legal will ensure that your business is fully compliant before you open your doors to the public.
Filing Requirements
Keeping up with state and federal filing obligations is also necessary for small firms to remain compliant. Many of these requirements are ongoing; they require quarterly or yearly filings.
Typical state filing requirements include:
- Submitting an initial report and fees after incorporating your business.
- Filing franchise taxes for some locations
- Submitting an annual or quarterly report with the state authority
- Informing state authorities if you change the business name or transfer the ownership to someone else.
Similarly, businesses need to comply with federal filing requirements. For example, if your business entity employs more than fifty people, you must file proof of employee health coverage with the Internal Revenue Service (IRS). Likewise, you may need to comply with federal environmental laws.
Working With Third-Party Vendors
Many small businesses work with third parties who deliver products or perform services. These partnerships require a legally binding contract detailing the obligations and responsibilities of each party. Your business interests will be better safeguarded if you work with an attorney familiar with your operations and recent developments in contract law.
In some circumstances, Shehu Legal includes clauses in an agreement with a third party that safeguards a client's proprietary information. For example, a contract may forbid third parties from disclosing a client's customer list, sharing its unique product formulation, or partnering with business competitors.
Running a small business is fraught with legal and civil compliance issues. If you want to run your business successfully and without hiccups, it's critical to collaborate with an experienced lawyer who understands the nuances of small-business regulation.
Why Retain Us?
It's critical for a small business to retain competent legal counsel. In Connecticut, ignorance is never an excuse for breaking the law or committing a regulatory violation. Therefore, hiring a small business lawyer who knows the fundamentals of business law and its impact on your company is critical for your enterprise's current and future successes.
Shehu Legal understands that it is cumbersome to meet the legal obligations of running a small business. That's why we provide tailored representation to every small business client. So let us take care of all of your legal requirements--from acquiring your business name to drafting a third-party contract.