Home based businesses can be an exciting new endeavor that bring in significant profits. Of course, before you get started, you should know that home based businesses are still required to conform to some strict rules and regulations. Before you decide to open your own home based business, here are a few points you should carefully review.
1. There are restrictions on the sale of certain goods and these vary from state-to-state.
There are a variety of items that you cannot produce or sell in your home. Potentially dangerous products such as medications and sanitary products are illegal to manufacture and/or sell from home.
2. You need to register and obtain certain licenses to be legally able to do business.
Before you open up shop, make sure you register your business's name in the state that you're conducting business in. Additionally, you will also need to register for a sales tax number, since every business is required to collect sales tax.
3. You may need a Home Occupation Permit and Check Your Zoning Laws!
In some states, you will need to have a Home Occupation Permit in order to legally do business. You will need to check whether or not your home is zoned for the type of commercial activity you plan to do in your home.
4. There are additional health and safety measures you may have to take.
Certain industries require extra health and safety precautions to ensure that both the working environment and final product are safe for consumption. You should check with your State Environmental Protection Agency to ensure that your home based business is up to date with all safety standards.
5. You may want to look into sign permits.
If you have a business such as a home based daycare, you may want to place a sign in front of your home in order to advertise. If this is the case, you may want to look into whether or not you need a sign permit, since certain towns will restrict the size, type and/or location of signs.
Its important to be informed before you start any kind of business. If you have any questions or concerns about the legalities of starting your own business, its best to consult an attorney. This will ensure that your business is up to code in all areas and help you understand your legal responsibilities so that your business will get off to a great and productive start. Good luck with your new business!
Showing posts with label business. Show all posts
Showing posts with label business. Show all posts
Thursday, July 24, 2014
Wednesday, June 25, 2014
Tips for Small Business Owners: the FMLA
The FMLA is also known as the Family and Medical Leave Act. The act mandates that certain eligible employees are entitled to take job-protected (though unpaid) extended leave for family and medical reasons. It is important for small business owners to be aware of the nuances of the FMLA so that your business does not get held in violation.
Those considered covered employers under the FMLA are the following:
-private employers with 40 or more employees, including a joint employer or successor in interest to a covered employer
-public agenciest
-public or private schools
Those considered eligible employees under the FMLA must fulfill the following requirements:
-those that work for covered employers
-has worked for a covered employer for at least a year
-has worked at least 1,250 hours of service for the employer during those 12 months before leave
-works at a location where the employer has at least 50 employees within 75 miles
Eligible employees are entitled to take up to 12 weeks of job protected leave each year if they or an immediate family member falls ill. Employees can also use the FMLA to take leave in cases of pregnancy or adoption. The leave can also be taken in whichever manner best accommodates the employee, whether that be a continuous 12 week absence, a reduced work schedule, or simply a few hours a week off for medical appointmemts.
As a business owner, it is important to be aware whether or not you are a covered employer and to fully follow FMLA guidelines if you are. If your business is not in compliance with the FMLA, the business will be at a significant risk for lawsuits. Covered employers must (1) post a notice explaining employees' rights and responsibilities under the FMLA, (2) include information about the FMLA in their employee handbook and inform employees of it upon getting hired, (3) if an employee requests leave, provide him or her with a notice concerning his or her eligibility for FMLA leave, and (4) notify employees whether leave is designated as FMLA leave and the amount of leave that will be deducted from the employee's FMLA entitlement. Additionally, when an employee returns from FMLA leave, he or she must be restored to his or her previous job or an equivilant one. Not adhering to these guidelines could result in serious consequences for your business, including monetary fines.
If you need assistance with a FMLA related legal matter, feel free to call my office at 718-317-5007.
Those considered covered employers under the FMLA are the following:
-private employers with 40 or more employees, including a joint employer or successor in interest to a covered employer
-public agenciest
-public or private schools
Those considered eligible employees under the FMLA must fulfill the following requirements:
-those that work for covered employers
-has worked for a covered employer for at least a year
-has worked at least 1,250 hours of service for the employer during those 12 months before leave
-works at a location where the employer has at least 50 employees within 75 miles
Eligible employees are entitled to take up to 12 weeks of job protected leave each year if they or an immediate family member falls ill. Employees can also use the FMLA to take leave in cases of pregnancy or adoption. The leave can also be taken in whichever manner best accommodates the employee, whether that be a continuous 12 week absence, a reduced work schedule, or simply a few hours a week off for medical appointmemts.
As a business owner, it is important to be aware whether or not you are a covered employer and to fully follow FMLA guidelines if you are. If your business is not in compliance with the FMLA, the business will be at a significant risk for lawsuits. Covered employers must (1) post a notice explaining employees' rights and responsibilities under the FMLA, (2) include information about the FMLA in their employee handbook and inform employees of it upon getting hired, (3) if an employee requests leave, provide him or her with a notice concerning his or her eligibility for FMLA leave, and (4) notify employees whether leave is designated as FMLA leave and the amount of leave that will be deducted from the employee's FMLA entitlement. Additionally, when an employee returns from FMLA leave, he or she must be restored to his or her previous job or an equivilant one. Not adhering to these guidelines could result in serious consequences for your business, including monetary fines.
If you need assistance with a FMLA related legal matter, feel free to call my office at 718-317-5007.
Thursday, April 17, 2014
What Business Owners Need to Know About Hiring Employees and Background Checks
One of the most difficult facets of running a business as a small business owner is finding and keeping the ideal employees. One aspect of this is the background check. Background checks are often necessary to ensure that potential employees are honest, stable and/or have the necessary prerequisites for the job. Although employers have the right to freely require a background check for employees in New York and New Jersey, there are some regulations that small business owners should be aware of.
According to the new federal guidelines, employers are no longer legally permitted to issue a blanket "no" if the applicant in question has a criminal record. Instead, employers must determine if the record will have any effect on the applicant's suitability to the job.
The other important set of regulations to keep in mind when hiring is the Fair Credit Reporting Act. The FCRA delineates the rights consumers have to protect their credit and other personal information. The FCRA clearly states that businesses must have a "permissible purpose" in order to pull credit information while hiring. This information is important because there has been a recent uptick in lawsuits pertaining to potential FCRA violations. If you are a small business owner and are unsure whether or not you have legal permission to request a credit report, you should consult an attorney with experience in labor issues. Again, you should have a clear reason for requesting a credit report before you do so. This reason must be pertinent to the job in question.
Remember, any violations of the federal guidelines will result in monetary penalties for your growing business. The avoidance of fines and lawsuits could make the difference in the success or failure of your business.
If you have any questions or concerns about the hiring process, feel free to contact my office at (718) 313 - 7563.
- Kevin P. McKernan
According to the new federal guidelines, employers are no longer legally permitted to issue a blanket "no" if the applicant in question has a criminal record. Instead, employers must determine if the record will have any effect on the applicant's suitability to the job.
The other important set of regulations to keep in mind when hiring is the Fair Credit Reporting Act. The FCRA delineates the rights consumers have to protect their credit and other personal information. The FCRA clearly states that businesses must have a "permissible purpose" in order to pull credit information while hiring. This information is important because there has been a recent uptick in lawsuits pertaining to potential FCRA violations. If you are a small business owner and are unsure whether or not you have legal permission to request a credit report, you should consult an attorney with experience in labor issues. Again, you should have a clear reason for requesting a credit report before you do so. This reason must be pertinent to the job in question.
Remember, any violations of the federal guidelines will result in monetary penalties for your growing business. The avoidance of fines and lawsuits could make the difference in the success or failure of your business.
If you have any questions or concerns about the hiring process, feel free to contact my office at (718) 313 - 7563.
- Kevin P. McKernan
Wednesday, March 5, 2014
Starting a Business? Here's Some Tips That Will Help
If you are contemplating starting a small business in New York, you are not alone. According to NYS, 98% of all businesses in New York are small businesses, and together these businesses employ more than half than the private sector workforce. Starting your very own business is very different than buying a business, which we discussed here. Unlike buying a business, when you start your own business you are in total control from the very beginning. You get to select everything, from the business name, to the location, to its employees. One of the advantages of starting your own business is that, according to NYS Department of Taxation and Finance, it is one of the least expensive ways of starting a business. One of the major disadvantages, on the other hand, is that by starting from scratch you must build your clientele and reputation from the ground up. Before you make any major decisions, you should carefully consider all your options and evaluate your financial situation. If possible, you may want to consult with other small business owners in your area so you have a first hand account of what a similar business should expect.
If you have decided on beginning your own business, congratulations! Here are few steps you should take before you open the doors:
• Decide what legal organization your business will be. The most common forms are the sole proprietorship, the partnership, the corporation and the LLC. You can find a “Pros and Cons” list of these organizations here.
• Sketch out a business plan outlining your product ideas and market strategy. Your business plan should include a description of your products and/or services, a list of your business goals and a timeframe in which you expect to achieve them, such as “Sell X amount of product in Y amount of time”, your plans for targeting your customer base and current trends in the market, and your financial situation, such as cash flow and profit and cost projections.
• Begin the employment process. First, you will need to obtain two vital types of insurance: unemployment and worker’s compensation insurance. These can be found either on your own through a private company or through NYS. You will also need to set up your payroll. It is recommended have payroll set up at least a week before you hire your first employee.
• Get an employee handbook. While not necessary, most new business owners find having a professional and comprehensive employee handbook makes managing people a lot easier. The handbook should explain company policy and include things such as vacation time, holidays, cellphone and/or computer usage, and behavioral guidelines.
I hope these tips help you out as you start your new and exciting foray into small business. If you have any questions or need assistance with beginning your business, don't hesitate to call the office at 718-317-5007. Remember, when in doubt, it's always better to contact a legal professional!
If you have decided on beginning your own business, congratulations! Here are few steps you should take before you open the doors:
• Decide what legal organization your business will be. The most common forms are the sole proprietorship, the partnership, the corporation and the LLC. You can find a “Pros and Cons” list of these organizations here.
• Sketch out a business plan outlining your product ideas and market strategy. Your business plan should include a description of your products and/or services, a list of your business goals and a timeframe in which you expect to achieve them, such as “Sell X amount of product in Y amount of time”, your plans for targeting your customer base and current trends in the market, and your financial situation, such as cash flow and profit and cost projections.
• Begin the employment process. First, you will need to obtain two vital types of insurance: unemployment and worker’s compensation insurance. These can be found either on your own through a private company or through NYS. You will also need to set up your payroll. It is recommended have payroll set up at least a week before you hire your first employee.
• Get an employee handbook. While not necessary, most new business owners find having a professional and comprehensive employee handbook makes managing people a lot easier. The handbook should explain company policy and include things such as vacation time, holidays, cellphone and/or computer usage, and behavioral guidelines.
I hope these tips help you out as you start your new and exciting foray into small business. If you have any questions or need assistance with beginning your business, don't hesitate to call the office at 718-317-5007. Remember, when in doubt, it's always better to contact a legal professional!
Friday, November 8, 2013
How to Create an Effective Non-Compete Agreement
A Non-Compete Agreement is a legal document used by business owners to restrict their employees from doing things that will damage the business, such as trying to convert customers or using inside knowledge or trade secrets, after they leave the company.
In New York, Non-Compete Agreements have been historically hard to enforce. The New York Court of Appeals has set strict guidelines that Non-Compete Agreements must follow in order to be considered valid in a court of law. The most important factor in whether or not a Non-Compete is enforceable is whether it is considered reasonable. The agreement must neither place undue hardship on the employee nor place any restrictions on the employee that are greater than needed to protect the company's legitimate interest. Despite the difficulty in enforcing Non-Compete Agreements, it is wise for small business owners to look into drawing up a valid agreement in order to protect their business. Below are some tips that can make your Non-Compete agreements more likely to be enforced in court.
In New York, Non-Compete Agreements have been historically hard to enforce. The New York Court of Appeals has set strict guidelines that Non-Compete Agreements must follow in order to be considered valid in a court of law. The most important factor in whether or not a Non-Compete is enforceable is whether it is considered reasonable. The agreement must neither place undue hardship on the employee nor place any restrictions on the employee that are greater than needed to protect the company's legitimate interest. Despite the difficulty in enforcing Non-Compete Agreements, it is wise for small business owners to look into drawing up a valid agreement in order to protect their business. Below are some tips that can make your Non-Compete agreements more likely to be enforced in court.
Tuesday, September 10, 2013
Tips for Starting a Business
Starting a business can be an overwhelming process. Here's a guide to the different kinds of businesses you can establish to make the process easier for you.
There are several types of businesses and it is important to choose which one to use carefully. The type of business you choose to establish will affect how you pay taxes and the legal status of the business. The most common types of business are the corporation, S corporation, partnership, sole proprietorship, and LLC.
After the jump, I explain the types of businesses you can form and their pros and cons.
There are several types of businesses and it is important to choose which one to use carefully. The type of business you choose to establish will affect how you pay taxes and the legal status of the business. The most common types of business are the corporation, S corporation, partnership, sole proprietorship, and LLC.
After the jump, I explain the types of businesses you can form and their pros and cons.
Thursday, August 8, 2013
Important Things You Should Know Before Buying a Business
Buying a pre-existing business is a hectic yet extremely exciting time for potential buyers. After all, there are so many things potential owners must do: narrow down locations, scope out the storefront, and examine the market, among others. And that's before you get to the paperwork! Luckily, there are some tips out there that can make the process much less stressful.
One important thing to remember is that buying a business is a big decision. It helps to do all your research before you actually begin talking to brokers and owners/sellers. Having all of your information prepared and organized beforehand not only ensures that you are informed, but that potential sellers will take you more seriously. One of most important documents you should prepare is an "Acquisition Criteria" sheet outlining your expectations for your new business.
One important thing to remember is that buying a business is a big decision. It helps to do all your research before you actually begin talking to brokers and owners/sellers. Having all of your information prepared and organized beforehand not only ensures that you are informed, but that potential sellers will take you more seriously. One of most important documents you should prepare is an "Acquisition Criteria" sheet outlining your expectations for your new business.
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