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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.”

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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!  

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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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!

 

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.

employment-contract

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!

www.AmeriLawyer.com

Browse our client testimonials for your Amerilawyer Reviews!

The Home Office Deduction

The Home Office Deduction published on

Avoiding unnecessary tax liability involves understanding many of the business-related deductions the IRS offers entrepreneurs. If you run your business from your home, you may be entitled to a home office deduction on the square footage of your home being used exclusively for your business. The

image1“exclusivity” test is taken very seriously by IRS auditors. The section of your   home that you claim is used for business must be partitioned in some way and personal-use either by you or other members of your family must be nominal (according to IRS, allowing your son to do his homework in your home office is enough to disqualify the deduction).

The second requirement is that the home office must be used as a principal place of business. The office must be used regularly (and exclusively for business) or it must be an area that is used primarily for meeting with clients. This does not mean, however that if you use an outside office from time-to-time you are disqualified from the home office deduction. So long as the office is used to complete substantial administrative or managerial tasks for the business, the second requirement will be met.

The ultimate payoff is that a number of direct and indirect expenses that would otherwise be personal, nondeductible expenses can be converted to business write-offs and consequently lower your overall tax bill (this includes the cost of phones or internet service, the cost of repairing the office, a certain percentage of utilities, insurance, taxes and much more). A well-drafted Home Office Lease between your corporation or LLC and yourself would be a great place to start.

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

 

Form a Dual Class Limited Liability Company with AmeriLawyer

Form a Dual Class Limited Liability Company with AmeriLawyer published on

WHAT IS A DUAL CLASS LLC

The Dual Class LLC is a special type of LLC that follows proposed IRS regulations which allow an LLC to be deemed analogous to a limited partnership for Federal Income Tax purposes. The Dual Class LLC is structured to admit both active, management-providing members (“General Members”) in addition to more passive, capital-contributing members (“Limited Members”). In doing so, the members/owners acting solely as limited partners are not subject to the Self Employment (“SE”) tax.

Here’s how it works. The Spiegel & Utrera, P.A. Dual Class LLC is divided as follows:

Class A General Member Units: The smaller manager class receives a priority preferred return of income (for example, a management or sales fee arrangement) that is contingent on the profitability of the LLC. As such, it may not be a fixed compensation amount or it will constitute a guaranteed amount, which is prohibited.

Class B Limited Member Units: This portion of the LLC membership interests is the cash-contributing members’ interest and is structured as a non-manager class qualifying for limited partner status. This class receives a cumulative preferred-priority return of profits based on their unreturned capital contributions, whereas the smaller active manager class would not.

For example, assume a Dual Class LLC with three Members: Perry Manson and Samuel Adamson are Limited Members initially investing $50,000 each into the Dual Class LLC and Angela Dickeyson is the General Member and she is putting in “sweat equity” (future services) with an agreed-upon value of $50,000 over the course of two years. To the extent that Angela is providing services to the Dual Class LLC, she will be subject to the SE tax while Perry and Samuel will not be.

Legal Advice Doesn’t have to be Expensive!

Often times folks tend to stress about the cost of legal services and setting up your corporation. At AmeriLawyer.com, we are committed to making sure you always receive the best price and value on every purchase you make. Our 110% Lowest Price Guarantee is a testament to that commitment.

If you should find a lower price on an item we offer from a legitimate competitor, whether online or otherwise, even if that item is already on sale, we will not only meet 100% of the lower price, we will beat the price by an additional 10% of the difference to thank you for bringing it to our attention.

To find more information about forming a Dual Class LLC click here:

http://www.amerilawyer.com/form_a_dual_class_llc/dual_class_llc.htm

 

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