by eclewis | Jan 4, 2009 | Business News
In a recent Wall Street Journal article, the author talked about an area many franchise purchasers fail to investigate – the employees of franchisors. Most people know before buying a franchise that due diligence is required – looking over the franchise books and records and careful reviewing of any contracts by an attorney is standard practice. However, information about the employees of the franchisor, with the exception of the highest positions, may never be discussed. Yet, this can be important in many respects. Many times, part of what the franchisee is buying is the services the franchisor provides. In addition to the standard due diligence, it is important to ask further questions. For instance, does the franchisor have the appropriate staff to market the franchise you are buying? Does the franchisor have the appropriate stuff to provide training to you once you purchase the franchise?
To make sure you are making a wise decision when purchasing a franchise, it is important to get as much information as you can about the franchise – including information that may not be publically available or readily disclosed to you. If you are thinking about buying a franchise, please contact me at Elizabeth.Lewis@eclewis.com or 720-258-6647 to discuss what you need to do to protect yourself.
by eclewis | Jan 2, 2009 | Business News, Misc. Legal Tidbits, Random Thoughts
Business New Year’s Resolutions
The New Year is the perfect time to start thinking about your legal resolutions for the year. Just like individuals make resolutions to get in shape, stop smoking, or reach new goals, business owners should make resolutions about their financial, marketing, or legal goals for the year. Setting goals can help your business succeed regardless of the economic times we are living in.
Legally, you should consider making goals that will help you both increase your profit and decrease you liability. The following are just some of the goals you may want to consider. If you are currently operating as a sole proprietor, you may want to consider incorporating or forming and LLC to receive legal and tax advantages. If you are currently using a tradename, trademark, or other intellectual property that is not currently registered or copyrighted then it may be time to ensure the property steps are taken to protect your rights. If you are contracting with clients, it may be time to consider either using contracts if you currently are not or having your contracts reviewed.
To determine what services would be most beneficial to your company to help you be profitable in 2009, please contact me today for a business assessment.
by eclewis | Dec 15, 2008 | Business News, Misc. Legal Tidbits
End of Year Small Business Preparation
Along with cork popping and fireworks, the New Year brings a new tax return. To ensure that you are ready for this year’s tax season, start gathering your receipts and categorizing them now. If you are working on a calendar year, pay any bills by December 31 to ensure that you can deduct them this year.
The New Year brings a time to reflect on the past and prepare for the future. If you have insurance, it may be time to review your policy to make sure it adequately covers your business. An additional vehicle, employee, or owner may mean that you need additional coverage. If you do not have an insurance agent, or just want a second opinion, please call me and I’d be happy to recommend one. As you prepare for the tax season, it is always a good idea to contact your CPA to ensure that he or she knows that you are planning to use him or her this year. Your CPA can help you identify how to categorize your records and get information if you qualify tax breaks. If you do not have a CPA, or just want a second opinion, please call me and I’d be happy to recommend one.
Finally, if you haven’t had an attorney review your business for legal issues recently, please call me for a business assessment. I will go over your business structure and current operation with you and identify areas that may need attention in 2009 and help make sure you are on the right track to a happy and successful New Year!
by eclewis | Dec 8, 2008 | Business News
In part three of the professional corporation series, I discuss starting an architectural firm.
In Colorado, architectural firms are not regulated like accounting firms. However, they must comply with Article 25, Section 25 of the Colorado Revised Statutes. Architectural firms must have a licensed architect directly supervising any architectural projects. In addition, the company must have at least one officer/owner/manager who is a licensed architect and who supervises all the projects. Engineers may also be owners of the firm. The architects and engineers that are owners of the firm are responsible for any work done by the firm.
As the above requirements are only some of the rules an architectural firm needs to follow, if you are an architect looking to start a company, please contact me if you need help to ensure that architectural firm meets Colorado legal requirements.
by eclewis | Dec 3, 2008 | Business News
Company holiday parties can increase employee morale. From a tax standpoint, holiday parties are beneficial because a company can deduct the cost of them while not treating the costs for the party as income to the employee unless the party is truly extravagant (think party held in the Bahamas). The company needs to keep all receipts in case of audit. You should consult your CPA to determine how to properly categorize the expenses (and maybe to ask him or her to come to the party to ensure a good relationship!).
From a liability standpoint, if alcohol is served, arrange rides for employees that party a little too hard. It may be wise to send out a quick email with your company’s sexual harassment policy just to ensure that everyone knows that although it is the holiday season, the party is still a business event.
From an employment law standpoint, if the party is held outside of normal business hours, it should be made clear that attendance is not required for hourly employees or contract workers. If you attendance is mandatory, you may be required to pay employees for their time at the party and it may affect the contractor’s status as an independent contractor.
Depending on the type of business, it may be best to hold it at a venue that would not subject any employees to religious or sexual discrimination feelings (i.e. strip clubs or restaurants with skimpily clad waitresses). In addition, if you live in a city where discrimination based on sexual orientation is illegal, you may want to ensure that employees are allowed to bring a “guest” rather than a “spouse”. This will also help to ensure that single employees know that they can bring a friend or significant other.
If you have any questions about your holiday party, or want your favorite attorney to attend, please call me at 720-258-6647 or email me at elizabeth.lewis@eclewis.com.
by eclewis | Nov 23, 2008 | Business News
In part two of the professional corporation series, I discuss starting an accounting firm.
In Colorado, the Colorado State Board of Accountancy regulates certified public accountants. When a company starts offering certified public accounting services for a fee, the company must register with the State Board of Accountancy within 90 days. To qualify to operate as an accounting firm, at least one owner must be a certified public accountant and if there are multiple owners, there are guidelines about the percentage of owners that must be certified public accountants.
The owners must form the accounting firm primarily to provide accounting services. In some cases, the firm may provide other services. All owners may be liable for the errors made by other owners or employees unless liability insurance is in effect. In some cases, owners may still be liable even with proper insurance. If the company opens offices in other states, further documentation and insurance may be required.
As the above requirements are only some of the rules an accounting firm needs to follow, if you are an accountant looking to start a company, please contact me if you need help to ensure that accounting firm meets Colorado legal requirements.
