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 small business. Show all posts
Showing posts with label small business. Show all posts
Thursday, July 24, 2014
Thursday, April 24, 2014
Get the Right Lease When Leasing Commercial Real Estate
The process of purchasing commercial real estate, especially for the first time, can be overwhelming. The first step is finding the ideal property, one that suits both your business needs and your financial resources. The next step is drawing up the right lease. When purchasing commercial real estate, as with any other major financial transaction, I strongly recommend you retain the assistance of an experienced attorney.
The details of your lease agreement will be very important for your financial future. These details can save or cost your business thousands of dollars annually, so it is vital for you to look over every section of your lease agreement with care. Below, I am listing some items you and your attorney should consider before you sign your new lease.
- What space are you renting?
The lease should clearly define the parameters of the space you will be leasing, including a site plan. A lease that is not clear in delineating what your property can lead to future costly Landlord/Tenant disputes. A common issue of contention is common areas and their maintenance. Most leases will hold Tenants responsible for at least some of the cost of maintenance of common areas, make sure
- What is your rental rate and how is it calculated each year?
Your lease should state not only your rental rate, but how much it will increase each year, whether that is determined by a formula or simply a flat rate.
- Do you have an "Exclusive Use" clause?
In commercial real estate, renters are commonly given an "Exclusive" if their property is located in a shopping mall or other commercial area. An "Exclusive Use" clause gives you the right to be the only business of your particular type in the commercial area owned by your landlord. An "Exclusive" can ensure your new business wont deal with direct competition and save you money in the process, so make sure you consult your attorney if these rights are not mentioned in the initial draft of your lease.
- Does the lease include a "Personal Guarantee"?
A "Personal Guarantee" is a clause in your lease that holds you, as the renter, personally liable for the rent if the business is not able to pay it. Personal Guarantee clauses have become increasingly common in the past few years, but this does not mean you have to outright accept them. If signing a Personal Guarantee makes you uncomfortable, you can ask your attorney to revise it to cover only a set amount of time, for example the first two years of the lease.
- Does the lease permit subleasing?
A lease that permits the renter to sublease the space can be a big advantage to renters, especially if you signed a Personal Guarantee. Subleasing rights allow the renter to lease out the property and cover rent costs if difficulties arise.
You and your attorney should consult on each of the above topics before you sign your new lease agreement. Good luck!
Wednesday, April 9, 2014
The Affordable Care Act Helps Your Small Business!
Recently, the Obama administration was able to pass the Affordable Care Act. The ACA is an extensive bill that will have a lot of positive effects on small business.
Here are some ways that the ACA will help you improve your small business:
1. Everyone knows that insurance can be incredibly expensive. Part of the aim of the ACA was the make healthcare more accessible to all types of people. Starting in 2013, a new program called SHOP (the Small Business Health Insurance Options Profram) will open Marketplaces where businesses can "shop" around for affordable health care programs. According to the U.S. Small Business Adminstration, small business pay on average 18% more than large businesses for health care. This gap should decrease by allowing businesses a place where they can compare and negotiate insurance prices.
2. The ACA also increases the available tax credit designed to help businesses with their health care expenses to up to 50% for those who participate in the Marketplace. Before the ACA, these businesses could only receive 35% in tax credits.
3. The ACA also created programs to improve the quality of care in the workplace. Under the act, workplaces receive increased rewards for instituting programs to help employees quit smoking or use a health-contingent plan.
4. With the ACA greatly increasing the number of people who have health insurance, small business on a whole will benefit by having healthier employees. Research shows that healthier employees are on average more productive employees. They take less time off from work and accomplish more when they are actually at work. Therefore, the ACA could provide a boost to the productivity of small businesses.
If you are a business owner and you have questions about how the ACA will impact your business, feel free to call my office at 718-313-7563.
Here are some ways that the ACA will help you improve your small business:
1. Everyone knows that insurance can be incredibly expensive. Part of the aim of the ACA was the make healthcare more accessible to all types of people. Starting in 2013, a new program called SHOP (the Small Business Health Insurance Options Profram) will open Marketplaces where businesses can "shop" around for affordable health care programs. According to the U.S. Small Business Adminstration, small business pay on average 18% more than large businesses for health care. This gap should decrease by allowing businesses a place where they can compare and negotiate insurance prices.
2. The ACA also increases the available tax credit designed to help businesses with their health care expenses to up to 50% for those who participate in the Marketplace. Before the ACA, these businesses could only receive 35% in tax credits.
3. The ACA also created programs to improve the quality of care in the workplace. Under the act, workplaces receive increased rewards for instituting programs to help employees quit smoking or use a health-contingent plan.
4. With the ACA greatly increasing the number of people who have health insurance, small business on a whole will benefit by having healthier employees. Research shows that healthier employees are on average more productive employees. They take less time off from work and accomplish more when they are actually at work. Therefore, the ACA could provide a boost to the productivity of small businesses.
If you are a business owner and you have questions about how the ACA will impact your business, feel free to call my office at 718-313-7563.
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.
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