What is the Best Location to Incorporate?
Okay, you have made the decision to go ahead and incorporate to protect yourself. The next question is where is the best place to do so?
One of the most misunderstood elements of business law is jurisdiction. Jurisdiction simply refers to the issue of what laws control particular situation. Actually, a better way to put it is whose laws control? In many business law niches, state laws are the guiding light, not federal law. The formation of business entities is one such place.
So, what location should you pick? In most situations, it is the state you will be conducting the business in. Remember, state law is controlling here. Nearly all states view businesses being run within their borders as falling under their jurisdiction. This means you are required to comply with the laws of the state. You are also required to pay taxes and fees the state requires for the running of your business.
Ah, but what about Nevada? For those new to the process, Nevada is touted as a great place to form your business entity. The state has very minor taxes, so many trump it as the best state to incorporate. There is, however, one problem. If you incorporate in Nevada, but run your business out of an office in your state, you are almost always violating the laws of your state. When tax agencies and regulatory groups look at business entities, the state of incorporation is not the issue. Instead, the issue is where is the business actually being conducted. If you incorporate your business in Nevada, but run it out of Los Angeles, you could be in big trouble. California will eventually figure it out. When they do, you will be penalized and assessed back taxes. It is an ugly situation.
There is one way around this situation. It involves a double incorporation strategy. Essentially, you incorporate one business in Nevada and one in your state. The Nevada entity runs the basic business. The entity in your state then manages the Nevada entity for a fee. This may sound great at first glance, but it is an expensive option. Make sure you talk with an attorney before going down this road.
If you are incorporating on your own, you should probably stick with the state you will be running the business out of. If you have other ideas, make sure to sit down with a lawyer or accountant to discuss your plan.
Gerard Simington is with FindAnAttorneyForMe.com - find an attorney online with our free directory.
What Your Lawyer Does and Does Not Do
Many people hire an attorney without really understanding what this person will do for them. Understanding what they do and do not do is important.
What Your Lawyer Does and Does Not Do
Most people have an image of attorneys based on what they see on the media. Whether the media comes in the form of dramas or talk shows with attorneys spouting off about just about anything, the image is generally incorrect. Simply put, most attorneys are just working stiffs like you and me.
The marching orders for you lawyer are to pursue the best possible result for you in the legal dispute. He or she is legal charged with representing you as enthusiastically as possible. Importantly, their role is not to get a “just” result. The system is set up so both sides should go nuts with the assumption being that justice will be done. Odd, but true.
It is vital that you understand this is the temperament of your attorney. For many people, legal issues can end up becoming bigger than they realize. For instance, your divorce attorney is charged with carving up your ex-spouse as much as possible to get you as much as possible. In the same vein, an attorney preparing a legal document for you is going to write it in such a way as to favor you as much as possible. If you are looking for a different approach, you must tell your attorney. If you want a “fair” divorce or an even handed contract, it is on you to tell them.
Another area that gets confused is what I call the ultimate decision. At some point in your legal matter, a major decision is going to have to be made. It could be whether to go to trial, whether to sign a contract and so on. The decision is yours and yours alone. An attorney will explain your options as well as the benefits and negatives of each option. At this point, many clients ask their attorney what they should do. The attorney will not give you an answer because it must be your choice. You are the party involved, not the attorney. Unfortunately, many clients take this as a sign the attorney is not helping them. This is incorrect.
Understanding what your attorney is going to do is vital to getting a result you are comfortable with. Unless you tell them otherwise, your attorney is going to go after the other side as aggressively as possible. If you don’t want this approach, you need to speak up at the beginning of the case.
Gerard Simington is with FindAnAttorneyForMe.com - find an attorney online with our free directory.
Your Options with Frivolous Lawsuits
As you hear and see over and over in the media, there are a lot of bizarre lawsuits filed in our country. So, what are the options when dealing with frivolous lawsuits?
Your Options with Frivolous Lawsuits
When talking about frivolous lawsuits, it is important to understand a few things first. Simply put, the question of what is frivolous is not as easy to answer as it may seem at first glance. We have all heard about the judgment against McDonalds for three million dollars for serving coffee that was to hot. In that case, however, the lawsuit was not frivolous per se. Instead, it was the judgment returned by the jury that was frivolous and way out of line.
In our justice system, practically anyone can file a lawsuit as long as they have the money to do so. It costs a couple hundred dollars depending on the location. In filing such a lawsuit, the person makes various claims against the defendant. If the claims are so outlandish as to be considered frivolous, the court does not deem them illegal. Lawsuits are a matter of civil law, not criminal law. In short, a civil lawsuit decides fault, not whether something is illegal.
While a judge will not rule a frivolous lawsuit to be illegal, he or she can take another step. As the case proceeds, the defendant can file a motion called a summary judgment. In that motion, the defendant argues that even if all the facts supported by the evidence offered by the plaintiff are presumed to be true, the defendant still has done nothing wrong. If the judge agrees, the lawsuit is over. Depending upon the state, the judge may also be able to award costs and fees to the defendant. The defendant, however, has another bullet in his arsenal.
Upon successfully defending a claim, a defendant has the option to file a malicious prosecution lawsuit. These are sometimes called “slap” lawsuits in certain states. In such a lawsuit, the defendant argues that the plaintiff filed a frivolous lawsuit for the pure purpose of harassing or causing the defendant to spend money on attorney fees. If the defendant is successful in bringing the claim, he or she can often recover the fees spent on an attorney and other damages dependent upon the relevant state law.
Frivolous lawsuits are a fact of life in our modern society. A determined defendant in a civil lawsuit, however, has the ability to turn around and come back at the plaintiff for filing them.
Gerard Simington is with FindAnAttorneyForMe.com - offering legal information articles.
One of the most misunderstood elements of business law is jurisdiction. Jurisdiction simply refers to the issue of what laws control particular situation. Actually, a better way to put it is whose laws control? In many business law niches, state laws are the guiding light, not federal law. The formation of business entities is one such place.
So, what location should you pick? In most situations, it is the state you will be conducting the business in. Remember, state law is controlling here. Nearly all states view businesses being run within their borders as falling under their jurisdiction. This means you are required to comply with the laws of the state. You are also required to pay taxes and fees the state requires for the running of your business.
Ah, but what about Nevada? For those new to the process, Nevada is touted as a great place to form your business entity. The state has very minor taxes, so many trump it as the best state to incorporate. There is, however, one problem. If you incorporate in Nevada, but run your business out of an office in your state, you are almost always violating the laws of your state. When tax agencies and regulatory groups look at business entities, the state of incorporation is not the issue. Instead, the issue is where is the business actually being conducted. If you incorporate your business in Nevada, but run it out of Los Angeles, you could be in big trouble. California will eventually figure it out. When they do, you will be penalized and assessed back taxes. It is an ugly situation.
There is one way around this situation. It involves a double incorporation strategy. Essentially, you incorporate one business in Nevada and one in your state. The Nevada entity runs the basic business. The entity in your state then manages the Nevada entity for a fee. This may sound great at first glance, but it is an expensive option. Make sure you talk with an attorney before going down this road.
If you are incorporating on your own, you should probably stick with the state you will be running the business out of. If you have other ideas, make sure to sit down with a lawyer or accountant to discuss your plan.
Gerard Simington is with FindAnAttorneyForMe.com - find an attorney online with our free directory.
What Your Lawyer Does and Does Not Do
Many people hire an attorney without really understanding what this person will do for them. Understanding what they do and do not do is important.
What Your Lawyer Does and Does Not Do
Most people have an image of attorneys based on what they see on the media. Whether the media comes in the form of dramas or talk shows with attorneys spouting off about just about anything, the image is generally incorrect. Simply put, most attorneys are just working stiffs like you and me.
The marching orders for you lawyer are to pursue the best possible result for you in the legal dispute. He or she is legal charged with representing you as enthusiastically as possible. Importantly, their role is not to get a “just” result. The system is set up so both sides should go nuts with the assumption being that justice will be done. Odd, but true.
It is vital that you understand this is the temperament of your attorney. For many people, legal issues can end up becoming bigger than they realize. For instance, your divorce attorney is charged with carving up your ex-spouse as much as possible to get you as much as possible. In the same vein, an attorney preparing a legal document for you is going to write it in such a way as to favor you as much as possible. If you are looking for a different approach, you must tell your attorney. If you want a “fair” divorce or an even handed contract, it is on you to tell them.
Another area that gets confused is what I call the ultimate decision. At some point in your legal matter, a major decision is going to have to be made. It could be whether to go to trial, whether to sign a contract and so on. The decision is yours and yours alone. An attorney will explain your options as well as the benefits and negatives of each option. At this point, many clients ask their attorney what they should do. The attorney will not give you an answer because it must be your choice. You are the party involved, not the attorney. Unfortunately, many clients take this as a sign the attorney is not helping them. This is incorrect.
Understanding what your attorney is going to do is vital to getting a result you are comfortable with. Unless you tell them otherwise, your attorney is going to go after the other side as aggressively as possible. If you don’t want this approach, you need to speak up at the beginning of the case.
Gerard Simington is with FindAnAttorneyForMe.com - find an attorney online with our free directory.
Your Options with Frivolous Lawsuits
As you hear and see over and over in the media, there are a lot of bizarre lawsuits filed in our country. So, what are the options when dealing with frivolous lawsuits?
Your Options with Frivolous Lawsuits
When talking about frivolous lawsuits, it is important to understand a few things first. Simply put, the question of what is frivolous is not as easy to answer as it may seem at first glance. We have all heard about the judgment against McDonalds for three million dollars for serving coffee that was to hot. In that case, however, the lawsuit was not frivolous per se. Instead, it was the judgment returned by the jury that was frivolous and way out of line.
In our justice system, practically anyone can file a lawsuit as long as they have the money to do so. It costs a couple hundred dollars depending on the location. In filing such a lawsuit, the person makes various claims against the defendant. If the claims are so outlandish as to be considered frivolous, the court does not deem them illegal. Lawsuits are a matter of civil law, not criminal law. In short, a civil lawsuit decides fault, not whether something is illegal.
While a judge will not rule a frivolous lawsuit to be illegal, he or she can take another step. As the case proceeds, the defendant can file a motion called a summary judgment. In that motion, the defendant argues that even if all the facts supported by the evidence offered by the plaintiff are presumed to be true, the defendant still has done nothing wrong. If the judge agrees, the lawsuit is over. Depending upon the state, the judge may also be able to award costs and fees to the defendant. The defendant, however, has another bullet in his arsenal.
Upon successfully defending a claim, a defendant has the option to file a malicious prosecution lawsuit. These are sometimes called “slap” lawsuits in certain states. In such a lawsuit, the defendant argues that the plaintiff filed a frivolous lawsuit for the pure purpose of harassing or causing the defendant to spend money on attorney fees. If the defendant is successful in bringing the claim, he or she can often recover the fees spent on an attorney and other damages dependent upon the relevant state law.
Frivolous lawsuits are a fact of life in our modern society. A determined defendant in a civil lawsuit, however, has the ability to turn around and come back at the plaintiff for filing them.
Gerard Simington is with FindAnAttorneyForMe.com - offering legal information articles.