Tax Advice from Your Small Business Attorney

by | Feb 22, 2017 | Business News

Tax Advice from Your Small Business Attorney

I recently heard a story about how someone’s husband’s early experience as a business owner, and some very serious tax issues he found himself in the middle of after purchasing a company from his parents. The most difficult part of the story is knowing, as a small business attorney, that the entire problem could have been avoided had the family sought legal advice either before the business changed hands, or once the family knew there were problems with the tax obligations the company owed.

Small Business Law and Tax Law

Unfortunately, this scenario is not uncommon; a mom and pop shop grows faster than their knowledge of small business law and tax law and they continue to operate on incorrect assumptions about the rules their small business should follow with regard to state, local, and federal taxes. By the time they realize they have made a mistake, rectifying the problem looks impossible. The worst choice is often the first choice; feeling overwhelmed and afraid, a small business owner may decide to look the other way and hope the problem goes away. In the case of the story I was told, the husband, his parents did just that, and as a result, they accrued a very large debt to the IRS which their son inherited as soon as he became the owner of the business.

New and Established Businesses

Whether your business is a one-person show or you have many employees, both your interactions with the Internal Revenue Service and the Colorado Department of Revenue can have consequences for your business. Failure to pay your taxes on time, withhold the correct amount for employment wages, or tax preparation done wrong can be devastating for both new and established businesses. This was the case for the husband in the story.

Tax Issues

After the husband had moved his family to a new community and taken over his parent’s business, his mother mentioned in passing that the IRS had been calling her and she was not sure what they wanted. His heart was in his throat before he even picked up the phone, but the phone call made it that much worse. His parents had failed to pay their business taxes on time, and had failed to withhold and pay employee taxes properly. Their son had unwittingly taken on all of their tax issues when he became the owner of the business without having sought any business formation advice, or legal review, or business planning advice from a small business attorney here in Colorado, where the business was owned.

Tax Advice

For this family, one meeting with a small business attorney who could provide tax advice regarding the best business structure before the business changed hands could have protected the son and helped the parents find a way to meet their tax obligations without the type of stress and worry approaching the IRS on their own created for them. Going back further in time, his parents would have been wise to get tips for paying the right taxes, and paying them on time as soon as the business started to grow and acquire employees and profits. They may not have thought about asking an attorney for tax help, but it would have been a wise choice. Even for businesses that do everything right, a letter stating the business returns are being audited can make a business owner worry, but facing the IRS on your own, as this family did, is a recipe for disaster. Make sure you have spoken to an attorney for tax planning before you ever get a phone call or a letter from the IRS.

If your small business encounters tax problems, or better yet, if you own a small business and haven’t met with an attorney to talk about tax planning, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Business Attorney. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

Mailing Address:

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

Patent Accessibility for Small Business Owners

by | Aug 25, 2016 | Business News, Misc. Legal Tidbits

Patent Accessibility for Small Business Owners

Patent Accessibility for Small Business Owners

Patents and the Small Business Owner

While some people launching a small business for the first time might not have legal help at the top of their mind, most everyone would agree that even thinking about pursuing a patent means it’s time to call an attorney. While your lawyer will probably agree that legal advice is a good idea when it comes to patent applications, there are things you can do on your own in the early stages.

Legal Help When You Need It

Giant corporations can afford to keep attorneys on staff or on retainer. If you’re a small business owner, you probably have to budget carefully for legal advice. The good news is there is a great deal of free information and support available from the United States Patent and Trademark Office (USTPO). They offer good early planning advice and ideas that can be a big help to hopeful entrepreneurs considering a patent. If this describes you, check out the Getting Started section of their website that includes a patent basics section with good information on Types of Patent Applications, Process Overview, Using Legal Services, and Inventor Resources.

However, much of the material is written for lawyers, not laymen. For example, you can download the 36 page guide to filing a design patent, but you may be dismayed by the opening paragraph:

Since a design is manifested in appearance, the subject matter of a design patent application may relate to the configuration or shape of an article, to the surface ornamentation applied to an article, or to the combination of configuration and surface ornamentation.

Huh? Not to worry! There is plenty of simple, straight forward advice on researching your business idea to see if someone already holds a trademark, copyright, or patent on it. And while you may not yet be entirely clear about what type of patent you are filing for, the USTPO has a good FAQ page where you can start to explore the possibility of obtaining a patent for your idea. Here are a couple of tips from the FAQ section you will want to consider:

1. Avoid Being Scammed
The USTPO recommends that you check on the reputation of an invention promotion firm before engaging one to help you in the patent process – something you can do easily online or on their website.

2. Get Help from the IAC
The Inventors Assistance Center (IAC) provides patent information and services to the public and is staffed by former Supervisory Patent Examiners, experienced Primary Patent Examiners, various intellectual property specialists and attorneys who can answer general questions (but cannot give legal advice).

How to Contact the IAC
Hours: Monday – Friday, 8:30 AM – 8:00 PM (ET), except federal holidays
Toll-free: 800-PTO-9199 (800-786-9199)
Local: 571-272-1000
TDD/TTY customers can dial 800-877-8339 for customer assistance

Greater Clarity, Better Service

While the patent process is complicated, the USTPO has recently launched the Enhanced Patent Quality Initiative (EPQI) to strengthen their “work products, processes, services, and how we measure patent quality at all stages of the patent process.” While this may not translate into an immediate do-it-yourself model for patent applications, it does have Denver-area intellectual property lawyers hopeful about a more streamlined process, including more affordable alternatives to the appeals process.

Can a Denver Small Business Lawyer Help?

Patent law is highly specialized and not typically part of the practice for any small business attorneys that I know of in Denver. However, when it is time to hire a patent attorney, I can refer you to some of the best. Meanwhile, if I can help you draft company documents, review your online legal standing, or decide on the right language for an employment contract, you can reach me, Elizabeth Lewis, at the Law Office of E.C. Lewis PC, home of your Denver Business Lawyer: 720-258-6647 or email me at Elizabeth.Lewis@eclewis.com.

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

Mailing Address:

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

Small Business Work-Life Balance

by | Apr 15, 2016 | Business News

Small Business Work-Life Balance

Work-life balance is one of those issues we often hear about when it comes to employees, but what about small business owners and entrepreneurs?

Being a small business owner is challenging. It takes a lot of time and energy in order to keep the business going and growing. This can often lead to the assumption that the more time you put into something, namely, your business, then the more you will get out of it. Right? Maybe, maybe not, but you should try and be smart about it.

Consider this, studies show that the belief that multitasking is a powerful productivity tool is a myth. If you are in the middle of a personal, non-business task at home for example, then it might be a good idea to finish that up and then take care of that business matter later. Of course there are always exceptions, emergencies do happen, but do not automatically assume that making your business your number one priority will always lead you to better business results. If you come back to that business task with your full attention, you will likely complete it better and in less time.

Another way to help you obtain a better work-life balance would be to set aside one day out of the week (or maybe even the whole weekend if possible) to not do anything business-related. Think carefully about what day you choose, and make sure it is one that can work for you. For example, if your business gets an important delivery on Saturdays where there are commonly questions or problems with it, then that might not be a good day to choose. This can allow you to decompress, get some greater perspective, and then be ready to jump back into work more inspired and reinvigorated. Burnout is real, and taking steps to overcome it or prevent it now will reward you and your business over the long-term.

A common problem with work-life balance for small business owners is when you operate a home-based business. When you are in this situation, it can be hard to ever feel like you are off-the-clock and actually able to relax in your own home. If you are in this situation, consider limiting all of your business operations, equipment, inventory, et cetera, to one or two rooms in your home. If you have business items strewn across the house, you will likely find yourself thinking about work everywhere you go at home. Additionally, if you do all of your work at home, then it might be a good idea to keep a strict schedule for yourself of working hours. Get in a routine. Together, these tactics should train your brain to focus better on your business by concentrating both when and where you work in a common and predictable way for yourself.

Whatever your small business’ circumstances, it is crucial that you give it 100%, but you cannot do that if you are trying to work 100% of the time. We are all human after all, and we need to eat, sleep, get some rest, and spend some time with our families in order to be at our best on the job. So try and strive for a reasonable work-life balance for yourself, and you will likely be a better person and business owner for it. Lastly, remember not to feel guilty for taking some time out or else you likely will not experience the benefits of rest and balancing your work and the rest of your life. Just give it a try and see if it works for you.

If you need legal advice for your business, or are ready to start a new business of your own, then don’t hesitate to reach out and contact the Law Office of E.C. Lewis, P.C., home of your Denver Business Attorney, Elizabeth Lewis, at 720-258-6647 or email her at elizabeth.lewis@eclewis.com.

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

Mailing Address:

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

Craft Beer is a Billion-Dollar Economic Driver in CO

by | Apr 7, 2016 | Business News

Craft Beer is a Billion-Dollar Economic Driver in CO

As today is National Beer Day, what better way to celebrate than talking about beer! According to a study released by the University of Colorado’s Leeds School of Business in association with the Colorado Brewers Guild, small, locally-owned breweries had an overall economic impact of 1.15 billion dollars on the Colorado Economy for the year of 2014, and it employs over 6,000 workers in Colorado.

This is good news for Colorado as one of the top craft beer brewing states in the country. At the end of last year’s count, there were 261 craft breweries in Colorado, with more and more popping up all the time. The latest figures now have the count at over 300! Altogether, this means that you likely don’t have to go very far to find excellent beer in or near your neighborhood. These Colorado craft beer brewers are made up of small businesses that simply love great beer and Colorado. They just want to share their passion with others, and consumers have been buying.

Overall, the craft beer takeover is not showing any signs of slowing down yet, but how long can it continue to grow at these rates? This is growing concern. How much is too much craft beer in one area? As far as the national numbers go, craft beer is still only sitting at just over 12% of the beer market share, but more locally, the market may be experiencing a lot more crowding. The growth and interest in craft beer is likely making the bigger, national brewers nervous too, who may be looking to buy some of the smaller brewers or get more creative with their own beer offerings to try to compete.

Another ongoing concern for craft brewers is a potential ballot initiative that would allow for grocery stores and other big retailers to be able to start selling full-strength beer inside, an issue we discussed previously here. They fear this could lead to more consumers opting for buying some of the more national brand offerings at these larger stores rather than going to their local liquor stores who tend to have large selections of local, craft beer offerings. Then there is also the impact on local small business liquor store owners being affected by the change as well. Craft beer is certainly an industry worth watching here in Colorado, whether you work in small or big business.

If you need legal help for your craft brewery, then don’t hesitate to reach out and contact the Law Office of E.C. Lewis, P.C., home of your Denver Business Attorney, Elizabeth Lewis, at 720-258-6647 or email her at elizabeth.lewis@eclewis.com.

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

Mailing Address:

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

Your Business Start-up To-Do List: How to Begin

by | Jan 15, 2016 | Business News

Your Business Start-up To-Do List: How to Begin

A great idea is the genesis of any successful business. Many entrepreneurs know that “Aha!” moment when the thought “it would just be so much easier if I could get this note to stick to my page!” magically becomes the Post-it® note — now amplified from its original pale yellow to be available in rainbow colors, finishes, and sizes.

If you’re ready to start your business, you’re already in possession of an idea you think will succeed. The next thing on your Business Start-up To-Do List is research the market. Does your idea solve a problem, fulfill a need, or offer something desirable? Is there anything similar out there? Who are your competitors? What do you bring that’s fresh and different to the table?

In a parallel process to figuring out those elements, you also want to check in with yourself that this is the right time, mentally and physically, for you to undertake this exciting and challenging process.

A formal business plan is essential if you plan to seek funding from other sources, but even if you don’t, it’s a valuable tool that will clarify and solidify your idea. If you’re lucky enough not to require outside funding because you are using your own start-up funds, creating a simple plan will keep your goals up high and keep you on track as you reach your milestones.

This far in you will have thought about what your business structure will look like: is it an LLC? A sole proprietorship? You may choose one direction at the beginning and shift to something completely different as you get underway. Paperwork and, potentially, legal advice are a part of this process, as is choosing a name (and a domain name) that suits you and your business needs. You’ll want to make sure you are covered with the proper licenses, registrations, insurance, and permits in advance of your launch.

If your business is the brick-and-mortar variety, you’ll need to find a location that works. If it’s a home office, you’ll definitely want to plan how to shift your living space so that it doesn’t unbalance the flow of your home. In particular, if you live with other people, it’s beneficial to discuss any upcoming changes in advance so that everyone can be operating from the same vantage point. At least in theory!

Are you hiring employees? Working with contractors? What about your accounting structure, the backbone of every well-run business? The earlier in the process you address all the moving parts the better your business will function down the road at a high level.

With these things checked off your list, your new business is essentially ready to roll out. Marketing, promotions, perhaps a free offering, and a social media blitz should be on your radar. Stay connected to your business plan, which is a fluid document that should grow and morph with your business and function as a touchstone and an inspiration all in one.

Good luck!

If you need legal help, don’t hesitate to contact me at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Lawyer. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com.

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

Mailing Address:

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets