Law2 Business Administeation Lesson pptx

Law 2 Lessons

1. GOOD DAY! LAWLAW STUDENTS How are you today?

2. HELLOW  CHILLAX LNG KAYO JAN

3. OUR TOPIC FOR TODAY  - Small Business Law - Starting a Business - Business Plan - Why you need a Lawyer for your start up Ten Reasons

4. Small Business Law Starting and running a small business requires a very broad skill set and nerves of steel . It's not for everyone , and even successful entrepreneurs encounter failure from time to time. In order to help you stay ahead of the curve, FindLaw's Small Business Law section covers everything from obtaining financing and hiring employees, to choosing the right insurance policies and filing taxes. Those who operate small businesses typically wear many different hats, but also must know when and how to seek help from others.

5. What Makes a Business a "Small" Business? A small business owner may operate a convenience store, a plumbing service, a salon, a fast food franchise, or virtually any type of business in a given field. While there is no clear definition, small businesses share some common characteristics. They are independently owned and operated, organized for profit, and are not dominant in their field, as defined by the U.S. Small Business Administration (SBA). The vast majority of businesses in the U.S. are considered small businesses, which employ roughly half of all workers in the country.

6. What Legal Issues Do Small Business Owners Typically Encounter? All businesses will encounter certain legal matters, such as questions about taxes or drafting contracts. But a small business owner's legal obligations and risks generally depend on the type of industry, business model, inherent risks involved, state laws, and a host of other considerations he or she faces. It's always best to consult an attorney before opening up shop, but anyone starting a small business will likely be confronted one or more of the following legal issues:

7. Choosing a legal structure (such as a partnership, limited liability company, or corporation); Hiring and managing employees in accordance with state and federal employment laws; Protecting inventions and trademarks through intellectual property law; Extending credit and collecting on past due amounts in accordance with federal laws; Complying with health and safety regulations when constructing or preparing a work site; Maintaining the required level of workers' compensation insurance coverage

8. How Can an Attorney Help My Small Business? While small business owners act in a number of capacities, the successful entrepreneur knows when to ask for help. This is especially true of legal matters, which can sink a business if handled poorly or ignored altogether. Certain things can sometimes be done without a lawyer, such as creating a legal partnership agreement, submitting necessary tax forms, and drafting contracts with partners.

9. But some issues are too time-consuming, too complex, or too high-stakes to handle without the care and expertise of a business lawyer. These include defending against wrongful termination claims by former employees, making a "special allocation" of profits and losses, or negotiating for the acquisition of another company's assets. Again, your legal needs will be unique to your business. And while seeking counsel for complex legal is smart, retaining an attorney to help prevent legal problems from occurring in the first place may be even smarter.

10. Starting a Business Starting a business always begins with an idea. But entrepreneurs must be savvy about devising business plans , securing small business loans, and making any number of critical moves that can make or break an organization. FindLaw's extensive collection of start-up resources will help you navigate which business structure to choose, better understand business law, comply with state and local regulations and find other important materials to help you start a business. In addition, you will find sample documents, information about hiring attorneys, and contact information for small business development centers.

11. Taking Stock: Are You Ready to Start a Business? The idea of being in business for one's self is very attractive. Entrepreneurs typically go into a field that excites them; get to be their own boss; have the ability to create the company culture they'd like; are in charge of their own destiny; and so on. But the flip-side to all of this is the very real possibility of failure (most start-ups don't make it); the often-prohibitive cost of starting a business; the substantial time commitment; and the enormous responsibilities involved.

12. Going into business for yourself can be extremely rewarding, but you will need an appetite for risk and good understanding of what you're up against. Also, even the most successful businesses typically don't break even for the first several years of operation. And even if you don't plan on hiring employees, you will need to be able to work with bankers, customers, suppliers, attorneys, accountants, and others involved in your venture.

13. The Business Plan Not everyone who starts a business writes a business plan, but it is crucial to the success of any business. The business plan defines your business and its goals, outlining the market opportunity and long-term plan for how you will reach profitability. The plan also provides a balance sheet, income statement, and cash flow analysis. The business plan not only helps you stay on task, but also is required by most lenders. Before you start writing your business plan, you will want to consider what service or product your business provides and the need it serves; who the potential customers are; how you plan on reaching those customers; and how you will fund the business.

14. Small Business Financing Financing your startup will require a full understanding of the various options available and which options are best for your business. You may need different kinds of funding at different stages of growth, always considering the long-term implications of various funding sources. For example, you may need to seek debt financing if you believe fast growth is needed to get your business to where it needs to be. Inadequate funding can sink an another promising startup before it has a chance to prove itself. Too much funding can be detrimental. For example, venture capitalists and angel investors may be able to infuse a large amount of capital at once, but they typically take a large piece of the Co. in exchange . If growth expectations are unrealistic, too much capital may set your business on the wrong path.

15. Why You Need a Lawyer for Your Startup: Ten Reasons When people decide to  start a business , they usually have a great idea and some money to invest in the enterprise. Some people opt to start the business by themselves or with family members, while others have partners or other investors who will not be involved with the day-to-day affairs of the business. The laws that apply to start-up businesses differ based on the specifics of the situation, and even business people who decide to go it alone have options to protect themselves from personal liability for business debts and obligations. For this and other important reasons, you most likely will need a lawyer for your startup.

16. 1. Contracts.  Most  businesses execute contracts  for space, services, and supplies. Businesses often have agreements between partners, investors, and employees. It is important to get it right so you don't end up in court. 2. Registering, Licensing, and Permits . Some business entities are required to register with the state in order to be recognized. Even businesses that are not required to register may be required to obtain  licenses or permits . 3. Business Form.  The choice of  business form often dictates the legal responsibilities and potential liability of those involved in leading the business, as well as the manner in which it may operate. For example, choosing the wrong entity may make you personally liable for the wrongs of employees or partners.

17. 4. Multi-State Business .  The preconditions to forming and conducting a business entity in one state may not be accepted in another state. If you are not careful, the protections you have in your home state of operations may be lost if you do business in another state. See the  State Business Laws  section for more details. 5 . Strict Conformity .  With some business entities you must strictly conform to the state law governing that business form, or you may lose the benefits and protections of those laws. Top of Form Bottom of Form 6. Capital .  Businesses need to  raise money , keep records of income and distributions, and behave in a fiscally responsible manner. Different business entities may require different procedures for raising capital and making distributions.

18. Variety of Entities .  Although there are five basic business entities, there are other options within these entities that determine things like double taxation and liability for the acts of partners. Autonomy .  With many business entities, the things you don't decide are decided for you. Most states have adopted "Uniform Laws" that fill in the gaps for business entities where their charters, by-laws, and other organizing documents are silent. You may be subject to a whole set of laws and regulations that you don't even know exist. Tax.  Different business forms provide different  tax  advantages and disadvantages. The only thing more crucial to a new business is liability.

19. 10. Liability .  Different business forms provide different protections and risks to the business owner/investor. Personal liability means that your business puts everything you own at risk. An attorney can help you avoid this situation or minimize your risk. Knowing about your personal liability, and reducing the risk that your business may devastate the economic well-being of you and your family, is well worth a visit to an experienced attorney. See  Business Liability  to learn mor e.

20. Get Startup off the Ground with Help from an Experienced Lawyer In most cases, you're going to need the services of a lawyer for your startup, perhaps for tax services or employment law compliance. Whatever the reason, make sure you contact the right attorney for your needs. You can get in touch with a qualified  business law attorney near you  today to discuss your needs and to learn how to set up a business that maximizes profits and minimizes liabilities.