Skip to content

Posts categoriezed as Business

What To Do While Waiting For Lending To Improve

What To Do While Waiting For Lending To Improve published on

Small businesses feel the squeeze as banks are tightening their belts

As the economy improves, bankers are seeing a surge in credit applications. However, banks are not positioned to approve loans as quickly as they did in the past because of substantial regulatory hurdles in determining creditworthiness. Following the too-big-to-fail fiasco, much of the credit capacity has concentrated in a handful of large banks, and these banks are taking a more conservative approach. On the other hand, regional and commercial banks that are willing to lend to small businesses are left with little credit to give.

Small business strategies to offset the big-bank credit crunch

The most common alternative to bank lending is high-net-worth individuals. Lending from these individuals can be done through convertible debt or terms of credit. Convertible debt is a blend between debt and equity. It is secured through a convertible note and carries a per annum interest rate until some point in the future when it converts into equity. The conversion usually occurs during the next round of financing and is given warranty coverage or discounted based on the company’s valuation. Terms of credit are only usually given to companies with a solid track record. They come in the form of a senior secured loan with a high liquidation preference, meaning they must be repaid before all other debt or equity holders.

To better understand how convertible debt or terms of credit can help your business, speak to one of our attorneys by calling 800-743-9900 or visit our website today!

www.AmeriLawyer.com

3 Unconventional Ways To Fund New Businesses

3 Unconventional Ways To Fund New Businesses published on

There are many ways to fund a new business. Below are some methods that may not always come to mind right away.

1. Product Presales – With this method you would sell your products with the intention of raising the money that you need to fund your business. This method could also be used as a dry run for when your company is open to give you an idea of the type of customers who will be purchasing your product as well as what it takes to get the product to your client if your business is online (shipping, etc.).

2. Angel Investors – Angel investors usually will expect a 20 to 25 percent return on their money. However, the angel may have experience in the type of business, contacts, and possibly customers that could help grow your business. The angel investor provides an atmosphere that may be a great deal less intense than a regular investor. Angel investors also typically deal in smaller dollar amounts.

3. Renting your Residence – There are many websites that allow you to rent your home or apartment for days at a time or months. Potential issues that can arise would be making sure you have a place to stay during the rental time and a place to work if you usually use a home office.

Call us or visit our website today to learn more about funding your new business venture!

800-743-9900

www.AmeriLawyer.com

How Donating To A Good Cause Can Help Your Business

How Donating To A Good Cause Can Help Your Business published on

To which kind of charity should your business donate?

It is easier to create opportunity if the cause is related to your business, for example, a tutoring services company sending teachers to an under-privileged neighborhood and in turn receiving referrals. If you can’t think of any ideas, then ask your employees or customers. They may be close to certain charities and will return their gratitude when you donate. Using local charities will also help with your business’s visibility in the community.

Get involved; don’t just write a check

Hands-on, face-to-face involvement will create more goodwill than just a donation. Also, volunteering is more affordable than a large cash donation. However, don’t force employees to volunteer. Your employees should not feel stigmatized if they don’t want to help. Similarly, customers may disagree with some charities depending on the cause. If this happens, then business owners should simply say they feel strongly about the cause and leave it alone. Keep in mind that customers often want to “shop their values.”

Community

For more information about how your business can donate, speak to one of our attorneys by calling 800-743-9900 or visit our website www.AmeriLawyer.com today!  

Building In Financial Forecasts For Your Business Plan

Building In Financial Forecasts For Your Business Plan published on

To attract investors and build a line of credit you need to project business finances!

Essentially, you must make educated guesses about how much money will be spent and how much will be taken in. Then you can use these estimates to calculate whether your business will be sufficiently profitable to sustain a bottom line. Usually a business will start off operating lean until you start building a customer base. If your projections show your business losing money initially, then you must consider raising prices or cutting costs while still in the planning stage. This can help you avoid sinking money into a business that cannot be profitable. On the other hand, if your business model shows profitability, then you can start to invest more and build your enterprise.

FullSizeRender

Understanding projected financial situation through estimates and calculations.

Start off with a break-even analysis by estimating income and expenses over the first year. In theory you should be able to turn a profit by the end of the first year. If not, then you must reconsider the business model. After determining the business can turn a profit, then turn to a month-by-month projection of your business’s net profits for the first year. Keep in mind that some businesses will be more or less profitable during certain months due to seasonal turnover. Finally, determine a start-up cost estimate. These costs should be included in your business plan to give a true picture of how much money you will need to get off the ground.

To understand how financial forecasts affect your business plan, speak to one of our attorneys by calling 800-743-9900 or visit our website www.AmeriLawyer.com today!

Protect Your Business Name And Logo

Protect Your Business Name And Logo published on

With the U.S. Trademark Office receiving over 450,000 applications last year, the agency responsible for helping businesses protect their intellectual property has revamped its structure to better streamline the volume of work and more efficiently process applications. As of January 17, 2015, the Trademark Office has reduced its filing fees in hopes of saving entrepreneurs and small business owners over $5 million in trademark fees in the next year.

Fees for filing a trademark are now $275 per class of registration, down from $325. As part of the reduced fees, applicants must agree to communicate with the reviewing office via e-mail. Communication includes all responses and other specified documents that are routinely part of the trademark review and prosecution process.

The Trademark Office will also now be sending courtesy reminder notifications to trademark owners for their required renewal applications. Previously, trademark owners were responsible for keeping track of their renewals on their own. Now, owners who authorize e-mail communication will receive notifications and the option to file their renewals online. Fees for renewal applications will also be reduced from $400 to $300.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have trademark related questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, Trademarks, Copyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company

 

Being A Better Decision Maker

Being A Better Decision Maker published on

One key difference between an entrepreneur and the average individual: the entrepreneur is a natural-born problem solver. While simple decisions can easily be taken care of, the more difficult problems require making difficult decisions. Successful entrepreneurs have found the following strategies helpful in the decision making process:

  • Don’t waste time. It is all too easy to delay a decision because of the sheer fact that it is a difficult decision. Consider setting aside a block of time during the day (or over a span of several days) to work the pros, cons, risks, and outcomes of your decision. Remember that ignoring problems will never help you make better decisions.
  • Put your ego and emotions on the back burner. It is completely natural to be too personally invested in your business. However, this can make decision-making especially difficult. Transcend your emotion and ego by practicing self-awareness. Strive to objectively arrive at the root of the problem. List potential causes of your problem. For example, if your business isn’t making enough money, ask yourself what the specific cause may be. Is your pricing right? Do your customers identify with your brand or services? Did you hire a bad employee? Better decisions will result from objective facts instead of wounded egos.
  • Ask an expert or neutral third party. Remember that while your problems may seem unique to you, there are entrepreneurs and professionals out there who have solved the same problems. A neutral third party also aids in keeping you objective in your decision-making process.
  • Understand the worst-case scenario. An entrepreneur understands the underlying risks of the decisions he or she makes. Always take a moment to deeply consider the worst-case scenario of the decision you’re about to make. Identifying your risks will help you rest easier when making decisions.

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

 

Why You Should Open A Commercial Bank Account For Your Business

Why You Should Open A Commercial Bank Account For Your Business published on

Essentially, one of the most basic steps in starting up a business is opening a bank account. Opening a bank account for the business separate from the individual bank account of the owner has many benefits. For instance, it makes it easier to organize the business’ expenses, pay taxes and maintain financial records.

If your business is an entity such as a limited liability company or a corporation, a separate bank account is necessary as the company is a legal entity separate from its members or owners, respectively.

In order to set up the business account, the bank will require certain documentation including the incorporation records for the entity, which will show the structure of the company and what authority you have in the company. These documents are generally the articles of incorporation or organization.

Some banks may require a certificate from the State to make sure that the company is active and in good standing.

Additionally, Banks will require you provide the Employer Identification Number (EIN), you were assigned by IRS.

Notwithstanding that the company’s corporate records, your authority within the company and the EIN number is the only basic information banks need. Other documentation required depends on the internal policy of the bank you choose, not the law.

Do not delay; call us or visit our website today for more details!

(800) 603 – 3900

www.AmeriLawyer.com

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

www.AmeriLawyer.com

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

www.AmeriLawyer.com

 

 

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.

 

Page Footer

Document Footer