Legal issues abound in business at every turn. From organizing with the state at startup to litigating employment issues to closing the doors, the legal ramifications of every decision matter. Most startup experts recommend retaining a competent attorney as a first step in starting a business. This is good advice, but simply turning over all responsibility to an attorney is unwise at best, devastating at worst.

Organizing Your Business
Most businesses should be organized as either an LLC or corporation. The best choice will depend on who you ask for advice as much as your own particular situation. That is, it is very common for accountants to recommend corporations and attorneys to recommend LLCs, regardless of the specifics of the venture. In fact, there are very clear arguments for one over the other, and it is the entrepreneur’s responsibility to make the best choice for their circumstances. Don’t leave the decision to outsiders, learn the fundamentals of each entity type and make the decision for yourself.

Write Your Operating Agreement
All businesses should formalize an operating agreement that covers the basic rules and regulations of the venture. If the entrepreneurs are entering a partnership, the details are even more important. Many a small business has crashed and burned at the hands of an absent, incomplete or misunderstood partnership agreement. Again, leaving the details to an outsider, attorney or otherwise, is just plain crazy. It is your business and you need to decide how you want to manage it. What if your partner dies? Or becomes a compulsive gambler? Or just quits? The “standard form” that many small businesses end up with does not necessarily deal with unplanned events in the best way for your situation, so it is critical to work through the legalities of setting up your business yourself.

Contracts are King
Contracts are an everyday part of most businesses as well. Some entrepreneurs pay an attorney to review contracts, perhaps even write them, in order to protect themselves. Unfortunately, they still often have no idea what the various clauses mean…and more importantly what they will mean if something goes awry. Waiting until the business is sued, or you need to sue somebody else, to understand what is in the contract is a major, but common error. Again, it’s your business and you need to be more than familiar with every aspect of it.

Employment Law
The most confusing and potentially devastating area of law for entrepreneurs is employment law. Unless you are very familiar with the federal and state laws that apply to your employees, it can be very easy to run afoul and end up in serious trouble. From recruiting and hiring to evaluations and terminations, there are significant regulations that affect what employers can do and how they can get it done. In addition, employment taxes cause all sorts of troubles, especially for first-time, inexperienced employers. The fundamentals of becoming an employer should be understood long before the first hire, and should not be left to chance.

None of the legal issues in business are particularly complicated, but all can be devastating if not appropriately handled. Hire an attorney if it’s in your budget, but also put in the time and energy to understand your legal responsibilities in every aspect of your venture.
Kehr Law provides our clients with a single resource to address a wide variety of legal concerns present throughout every stage of life. Kehr Law takes pride in achieving unparalleled success for our clients by providing first class legal service and representation, through accessible, personalized service and technologically advanced resources. We provide our clients with tenacious, yet cost-effective legal representation. Our innovative fee arrangements and payment plans allow our clients to surpass their goals in a financially prudent and expeditious manner. Through honesty, integrity, ethics, and on our unrelenting drive to attain perfection, we seek to return the legal field to the “helping-profession” for which it was originally venerated. Our global network of professionals, advisors and consultants enables Kehr Law to meet and exceed our client’s expectations. We provide our clients with the necessary framework enabling them to operate with confidence, stability, and a high-degree of predictability.

For additional information about our Kehr Law, our practice areas, or our services please visit us on the web at www.kehrlaw.com or contact us by telephone at (619) 400-4942, via email at dan@kehrlaw.com, or via text message at (619) 823-8230.

KEHR LAW
501 W. Broadway, Suite 800
San Diego, CA 92101
Office: (619) 400-4942
Fax: (619) 400-4952
Cell: (619) 823-8230
Email: dan@kehrlaw.com
Website: http://www.kehrlaw.com

About the Author
K. MacKillop, a serial entrepreneur with a J.D. from Duke University, is co-founder of LaunchX and authors a blog focused on starting a business. Visit LaunchX.com to learn more about the LaunchX System, a complete business startup kit that helps you learn the business basics while starting a business.

Legal issues abound in business at every turn. From organizing with the state at startup to litigating employment issues to closing the doors, the legal ramifications of every decision matter. Most startup experts recommend retaining a competent attorney as a first step in starting a business. This is good advice, but simply turning over all responsibility to an attorney is unwise at best, devastating at worst.

Organizing Your Business
Most businesses should be organized as either an LLC or corporation. The best choice will depend on who you ask for advice as much as your own particular situation. That is, it is very common for accountants to recommend corporations and attorneys to recommend LLCs, regardless of the specifics of the venture. In fact, there are very clear arguments for one over the other, and it is the entrepreneur’s responsibility to make the best choice for their circumstances. Don’t leave the decision to outsiders, learn the fundamentals of each entity type and make the decision for yourself.

Write Your Operating Agreement
All businesses should formalize an operating agreement that covers the basic rules and regulations of the venture. If the entrepreneurs are entering a partnership, the details are even more important. Many a small business has crashed and burned at the hands of an absent, incomplete or misunderstood partnership agreement. Again, leaving the details to an outsider, attorney or otherwise, is just plain crazy. It is your business and you need to decide how you want to manage it. What if your partner dies? Or becomes a compulsive gambler? Or just quits? The “standard form” that many small businesses end up with does not necessarily deal with unplanned events in the best way for your situation, so it is critical to work through the legalities of setting up your business yourself.

Contracts are King
Contracts are an everyday part of most businesses as well. Some entrepreneurs pay an attorney to review contracts, perhaps even write them, in order to protect themselves. Unfortunately, they still often have no idea what the various clauses mean…and more importantly what they will mean if something goes awry. Waiting until the business is sued, or you need to sue somebody else, to understand what is in the contract is a major, but common error. Again, it’s your business and you need to be more than familiar with every aspect of it.

Employment Law
The most confusing and potentially devastating area of law for entrepreneurs is employment law. Unless you are very familiar with the federal and state laws that apply to your employees, it can be very easy to run afoul and end up in serious trouble. From recruiting and hiring to evaluations and terminations, there are significant regulations that affect what employers can do and how they can get it done. In addition, employment taxes cause all sorts of troubles, especially for first-time, inexperienced employers. The fundamentals of becoming an employer should be understood long before the first hire, and should not be left to chance.

None of the legal issues in business are particularly complicated, but all can be devastating if not appropriately handled. Hire an attorney if it’s in your budget, but also put in the time and energy to understand your legal responsibilities in every aspect of your venture.

Kehr Law provides our clients with a single resource to address a wide variety of legal concerns present throughout every stage of life. Kehr Law takes pride in achieving unparalleled success for our clients by providing first class legal service and representation, through accessible, personalized service and technologically advanced resources. We provide our clients with tenacious, yet cost-effective legal representation. Our innovative fee arrangements and payment plans allow our clients to surpass their goals in a financially prudent and expeditious manner. Through honesty, integrity, ethics, and on our unrelenting drive to attain perfection, we seek to return the legal field to the “helping-profession” for which it was originally venerated. Our global network of professionals, advisors and consultants enables Kehr Law to meet and exceed our client’s expectations. We provide our clients with the necessary framework enabling them to operate with confidence, stability, and a high-degree of predictability.

For additional information about our Kehr Law, our practice areas, or our services please contact us by telephone at (619) 400-4942 or via email at dan@kehrlaw.com.

KEHR LAW
501 W. Broadway
Suite 800
San Diego, CA 92101
Office: (619) 400-4942
Fax: (619) 400-4952
Cell: (619) 823-8230
Email: dan@kehrlaw.com & dan@dankehr.com
Website: http://www.kehrlaw.com

About the Author
K. MacKillop, a serial entrepreneur with a J.D. from Duke University, is co-founder of LaunchX and authors a blog focused on starting a business. Visit LaunchX.com to learn more about the LaunchX System, a complete business startup kit that helps you learn the business basics while starting a business.