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Still Making Money When Your Company Is Losing

Still Making Money When Your Company Is Losing published on

Under section 1244, shareholders of domestic small business corporations can deduct a loss on the disposal of 1244 stock as ordinary loss rather than capital loss. A deduction for capital loss is limited to $3,000 annually. Any excess capital loss has to be carried over to the next year. Nevertheless, ordinary loss under Section 1244 is deductible up to $50,000 for the individuals and $100,000 for joint returns.

How to qualify for Section 1244 stock?

To receive a tax benefit under Section 1244, a business must meet specific requirements for the insurance of small business stock, the stock itself, and the shareholders. To qualify the corporation’s equity may not exceed $1,000,000 at the time the stock was issued, the stock must be issued for money or property, and for five years preceding the loss the corporation generally must have derived more than half of its gross recipients from business operations and not from passive income.

To understand if you qualify for Section 1244 stock, speak to one of our attorneys by calling our toll free number (800) 603 – 3900

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Benefits Of Alternative Dispute Resolution

Benefits Of Alternative Dispute Resolution published on

The alternative dispute resolution techniques are generally less formal, less expensive, and less time-consuming than fighting in court. This can give businesses more opportunity to determine when and how their dispute will be resolved. By including alternative dispute resolution provisions in agreements with customers and vendors, businesses can avoid costly litigation expenses and attempt to resolve disputes through mediations and arbitrations.

Mediation allows an impartial person called a “mediator” to help the parties try to reach a mutually acceptable resolution of the dispute. In arbitration, a neutral person called an “arbitrator” hears arguments and evidence from each side and then decides the outcome of the dispute. Arbitration is less formal than a trial, and the rules of evidence are often relaxed. Arbitration may be either “binding” or “nonbinding,” depending on the terms of the agreement entered between the parties. Furthermore, in the case of arbitration the parties have far more flexibility in choosing what rules will be applied to their dispute. For instance, parties can choose to apply relevant industry standards, domestic law, the law of a foreign country, a unique set of rules used by the arbitration service, or even religious law, in some cases.

Call us or visit our website   for more information and to make sure your interests are protected!

(800) 603 – 3900

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Personnel Background Checks

Personnel Background Checks published on

When making personnel decisions, including hiring, retention, promotion, and reassignment, employers sometimes do background checks on applicants and employees. Any time you use an applicant’s or employee’s background information to make an employment decision, you must comply with federal laws that protect applicants and employees from discrimination based on race, color, national origin, sex, or religion; disability; genetic information; and age. These laws are enforced by the Equal Employment Opportunity Commission (EEOC).

Recently, the EEOC and the Federal Trade Commission (FTC) issued joint informal guidance regarding issues employers may face when consulting background checks. Here are some key points for employers:

 

  1. An employer may ask about a person’s background except for certain restrictions on medical and genetic information.
  2. If using a background check, the employer must be in compliance with laws prohibiting discrimination.
  3. When an employer gets a background report from an outside agency it must comply with the Fair Credit Reporting Act. In California, it must also comply with the Investigative Consumer Reporting Act.
  4. Employers should seek the same background information from all individuals.
  5. Employers should not request a person’s genetic information which includes family medical history. If the employer has that information, it should not use it to make an employment decision.
  6. Employers cannot ask medical questions before a conditional job offer has been made, and can only ask current employees medical questions if there is objective evidence that the employee is unable to do the job or poses a safety risk because of a medical condition.
  7. Employers must preserve records for one year.

 

It is critical that employers be compliant with federal, state and local laws regarding background information.

 

Prevent Business Identity Theft By Monitoring Business Activities

Prevent Business Identity Theft By Monitoring Business Activities published on

Businesses that may not have the resources to regularly monitor identity theft risk face the greatest risk of identity theft, with negligence being the most common threat. Generally, businesses focus on survival, making payments, making payroll, not on keeping their business identities safe. Regardless of size, businesses should regularly monitor their corporate filings, business license filings, bank accounts and credit reports. They should also implement appropriate security protocols and document destruction policies, as well as limit the use of social network and Internet surfing on office computers. If you have not done so already, one of the best investments you can make is in a better quality shredder for your business.

Always be vigilant and on the lookout for the following types of business identity theft: changing entity records with credit bureaus; creating businesses with similar names and locations as legitimate businesses; reinstating dissolved or defunct businesses without proper authority to give historic value, then altering officers, directors, registered agent; foreign entity filings mimicking those in other jurisdictions; creating fictitious websites; obtaining corporate and personal information through malware and other computer viruses; dumpster diving.

Visit our website for more information and to make sure your interests are protected!

Employee, Intern, Trainee, Volunteer: Which Should You Choose?

Employee, Intern, Trainee, Volunteer: Which Should You Choose? published on

Designating the term “Intern”, “Trainee”, or “Volunteer” to individuals does not automatically exempt the employer from federal and state minimum wage and overtime requirements. Unless the positions meet certain statutory and regulatory criteria, these individuals will be subject to the same wage-hour requirements as other employees. The liabilities for failing to compensate an employee properly include back wages, overtime, and liquidated and punitive damages, and attorney fees may also be available. Employers must therefore become familiar with the criteria set forth by the Federal Fair Labor Standards Act (“FLSA”) and applicable state laws then they pursue workers as unpaid interns, trainees, and volunteers.

Unpaid Interns: Whether an intern may properly be considered a “trainee” and not an “employee” under the FLSA (and a number of state laws) often requires a fact-specific analysis, and will depend on certain factors. The U.S. Department of Labor (“USDOL”) has established the six criteria listed below to guide courts and employers in determining whether trainees, students, interns and the like are considered employees under the FLSA:

  1. The individual receives training similar to what would be given in a vocational school or academic educational instruction; 2. The training is for the benefit of the intern or trainee; 3. The interns or trainees do not displace regular employees, but work under close observation; 4. The employer that provides the training derives no immediate advantage from the activities of the individuals and on occasion the employer’s operations may actually be impeded; 5. The interns or trainees are not necessarily entitled to a job at the conclusion of the training period; and 6. The employer and the individual understand that no wages are paid for the time spent in the internship.

The USDOL requires that all six of these criteria must be satisfied for an individual to be deemed an “intern” under the FLSA.

Volunteers: Under the FLSA, “volunteers” are treated somewhat differently than interns or trainees. For public sector employees to volunteer with their employing public agency and maintain “volunteer” status for their “volunteer” activities, the individuals must:

  1. Perform hours of service for a public agency for civic, charitable, or humanitarian reasons, without promise, expectation, or receipt of compensation for services rendered – although a volunteer can be paid expenses, reasonable benefits, or nominal fee to perform services;
  2. Offer services freely and without pressure of coercion; and
  3. Not otherwise be employed by the same public agency to perform the same type of services as those for which the individual proposes to volunteer. This volunteer exemption, however, is limited to public sector employers. Under no circumstance will an individual be deemed a “volunteer” when providing services private, for-profit employers. Any individual providing services for such an employer may do so only as an intern/trainee (provided the necessary criteria are met) or an employee.

The USDOL’s enforcement position has generally been that volunteer work for a private, not-for-profit employer is not considered compensable under the FLSA so long as certain criteria are met.

Averting “Intern” and “Volunteer” Mislabeling. The exclusion from the definition of employment by the FLSA is restrictive and individuals who are “suffered or permitted” to work, in most cases, must be compensated by the employer. However, there are practices that employers can initiate which could reduce the risk of FLSA and/or state mislabeling violations such as possessing an agreement detailing the parties’ mutual intent that: (1)their relationship will not be one of employment, (2)the intern/trainee does not expect employment or compensation, and (3)the relationship is to provide the intern/trainee with skills that can be used in various settings.

Visit our website for more information and to make sure your interests are protected!

 

Are Written Contracts Enforceable

Are Written Contracts Enforceable published on

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In large part, the terms of a written agreement between parties are the sole item considered when interpreting the items of an agreement upon a dispute between parties. The “parole evidence rule” is a common law principle which bars factors outside a written agreement to contradict the terms of a written contract except in cases of fraud, illegality, duress, or in some cases mistakes and ambiguity the written agreement. Oral promises made before or when a written agreement are entered that contradict a written agreement, cannot be considered when a dispute arises under common law principles.

However, a recent court decision has changed this basic rule when it reversed long-standing precedent by holding that evidence of broken oral promises that contradict the express terms of a written contract are no longer barred by the parole evidence rule.

Visit our website for more information and to make sure your interests are protected!

Pay Less Income Taxes On Your Stock

Pay Less Income Taxes On Your Stock published on

If you are a founder of a brand new company pursuant to a multi-year vesting agreement, or are an employee with stock options, then you may want to consider taking the IRS Section 83(b) election. Under both scenarios, taxes, including federal, Social Security, Medicare, and any other state or local taxes, must be paid on the vesting date of the stock.

The main advantage of the 83(b) election is that you will be taxed on the value of the stock at the date the stock was granted to you rather than on the date the stock vests, when the stock price has likely increased in value. Thus, the 83(b) election mitigates the tax burden for the difference between the stock price on the grant date and the vesting date. For example, if the stock on the grant date has a value to $1,000, a stockholder who files an 83(b) election will receive tax treatment on the value at $1.00 instead of paying tax on the vesting value of $1,000. Without taking the election, the stockholder will pay taxes on the vesting value of $1,000.

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Email: info@Amerilawyer.com

 

Protect Your Brand With A Trademark Registration

Protect Your Brand With A Trademark Registration published on

The use of the brand name of your product or service in the marketplace will establish trademark rights for the owner, but a recent Court decision underscores the value of filing a Federal trademark. Because the brand owner did not file a trademark, their competitor was not only allowed to keep the trademark but also limit the use by the original owner!

Filing for your trademark as soon as possible will prevent this and others from filing for their own trademark using your brand name, saving you from expense of litigation in the future and creating an asset for your business. Filing for your trademark also allows you to use the 100px-RegisteredTM.svg symbol and your right to recover enhanced damages for infringement. Each of these will help deter competitors, cybersquatters, or others from infringing on your brand.

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The law firm of Spiegel & Utrera, P.A. will provide you with professional and quality service toward the processing of your Trademark, Copyright or Trade Dress order. Below we’ve provided links for Trademark, Trade Dress, and Copyright information. We hope to answer all your questions. It is possible that there might be some unanswered questions even after you look through our material. Never hesitate to give us a call. Of course if you know all that there is to know about Trademark registrations, Trademark searches, Common Law searches, Trade Dress, Copyright, et cetera then you may proceed to the online secure order forms. Spiegel & Utrera, P.A. will deliver the professional service and affordable prices that all our clients have come to expect from us!

http://www.amerilawyer.com/trademark/

 

Phone: (800) 603-3900
Email: info@Amerilawyer.com

Avoid Being Unintentionally Bound When Making A Deal

Avoid Being Unintentionally Bound When Making A Deal published on

When two business want to begin a joint venture, they will often start with a Letter of Intent. One important aspect of the Letter of Intent is having a clear statement to not be bound until the Joint Venture Agreement has been signed by both parties. Courts have held conduct by the parties involved and oral communications as the basis for an agreement even when a written agreement has not been signed. And so, without an express statement of non-biding intent, preliminary collaborations and even off-hand utterances may undermine your goal of being bound only by the Joint Venture Agreement.

With the high costs of litigation, don’t resolve the unintended consequences of a mishandled negotiation with another business; have your intentions clearly stated in a well-drafted Letter of Intent.

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Visit our website today to make sure your interests are protected before beginning a joint venture.

AmeriLawyer Has Served Over 265,000 Clients

AmeriLawyer Has Served Over 265,000 Clients published on

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Spiegel & Utrera, P.A. has been in business for 20 years because of it’s professional service and value pricing and has over 265,000 satisfied clients. Our lawyers are qualified and highly experienced in Forming Corporations, Limited Liability Company and Sub Chapter S Corporations.

If you have any questions about our service and what we can do for you, don’t hesitate to call us at 800-603-3900, fax us at (305) 857-3700 or send a letter to P.O. Box 450605, Miami, FL 3324

Our prices are the lowest in the industry and we guarantee a top rated service. Make sure to visit our website today for more details!

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