Legal Question in Business Law in California

Re: Small Home-Based Business Consultation Needed

Looks like you're in Mountain View. Find a local attorney you feel comfortable working with; don't bother with out-of-towners, you can find the talents you need within 15 minues' drive of where you live.

Re: Small Home-Based Business Consultation Needed

Here's one.

Re: Small Home-Based Business Consultation Needed

I've been practicing law in the San Francisco Bay Area for over thirty years. Additionally, along with the practice of law I've taught business lot, corporate log, real estate loan, real estate line finance, estate planning at the undergraduate, graduate low school levels. I've been featured speaker in seminars and California education to the bar courses. I have been dealing with your types of concerns from the first day I started practicing. I would be happy to set up an appointment and go over the costs involved. If you wish to consult with me please call me at 9 2 5 -- 945 -- 6000

Re: Small Home-Based Business Consultation Needed

Hello Heather,

I would be happy to work with you and your new business! The legal needs of new and "young" small businesses are the primary focus of my practice, and I bring not only legal expertise to the task, but the personal familiarity of having founded two home-based businesses my-self: a professional pet sitting business, and (in my present profession) a solo law practice.

In addition, as a business lawyer and litigator, I know how to foresee and avoid future problems each step of the way.

If you would like to discuss your needs and my services further, please call me at (818) 207-8529. Please also visit my website for more information. While the site is still in development, you may find the "bio" and "philosophy" sections informative.

Yours truly, Elizabeth

http://www.macdowell-law.com

Re: Small Home-Based Business Consultation Needed

Hi, Heather --

I routinely deal with the issues you mention and my practice focuses on small business, start-ups, and enterpreneurs. Please see my website at http://www.incorporatecalifornia.com for more information and contact details. Such a consultation would be at my standard hourly rate of $195/hour and would likely last 1-1.5 hours.

In the course of the conversation, I might also recommend you consider incorporating your business, which, of course would be at an additional fee (flat fee pricing available; see website for details). I hope this helps, and I look forward to hearing from you soon, if this is of interest to you.

Best regards,

Re: Small Home-Based Business Consultation Needed

If you want to get started properly, retain an attorney to look at all.

Part 1: Small Home-Based Business Consultation Needed

Howdy:

Hmmmm. Some of your questions can be answered in a forum like this (which my colleagues have, as usual, completely failed to do); while some require review of documents. I'll try to keep the same order you have.

Also, I have to split this up into two posts, as there is a space limit and my answer exceeds it.

1. Risks

Some of the risks involved in starting a new business are common to all. (I hope you've researched the industry, evaluated the need for the business, checked out the competition, and have written a well thought out business plan!)

Some risks are industry specific (aging or fashion change of seasonal merchandise in a retail store, for instance).

The main risk is that you�ll invest in a large inventory, and then not be able to move it (assuming this is a retail-type business).

Also, if this is a retail business, you run the risk of selling something that is defective, which results in an injury.

2. Copyrights

I�m not sure about this question. I believe you are worried about infringing someone else�s copyright. The main way to avoid this is through education. However, in one instance, a consulting business called �Entrepreneur Now!� was sued by Entrepreneur Magazine for copyright infringement, with the magazine claiming a copyright on the word �entrepreneur�. And, the mag won! I don�t know where that leaves us with the use of Inc�.

The magazine case notwithstanding, most infringement problems are easy to avoid. Be sure to avoid using trade names. Of course, if you sell a name product, you have the right to use the name in marketing that product.

If you�re worried about your own copyrights, that takes a lot of diligence. Be sure to register your trade name, and any trade or service marks. It�s easy to do with forms you can download from the Patent and Trademark Office�s website.

3. Other protective documents

The main document you have to protect your rights and interests is your contract. While you can buy form contracts from an office supply store or a website, it�s best to spend the money to have a lawyer draw up a form specific to your needs. This is a cost you incur once to get the form, but after that your only cost is the reproduction.

From a personal liability perspective, you�ll want to form a business entity. And, the choice of form or the choice of forum depends on the type of business you have. If you have a business that is completely web-based, you may want to consider forming in a State like Nevada, where the maintenance costs are very low. If you have an actual place of business, then you�ll want to form in that State � likely California.

Formation of the entity isn�t a simple decision, and you�ll really need a good advisor for that.

Part 2: Small Home-Based Business Consultation Needed

4. Insurance

You�ll certainly need a commercial liability policy; if you are a retail business, you�ll need products liability coverage; and if you offer personal services, you�ll need errors and omissions coverage � or, malpractice insurance. (E&O insurance isn�t just for doctors and lawyers!)

5. Dos and don�ts

Do:

-> Your homework.

-> Know what business you�re in, and work it.

-> Listen to your customers or clients.

-> Start a library with clippings from newspapers or newsletters that you find valuable.

Don�t:

-> Spend initial money on secondary considerations before building the sales.

-> Forget what business you�re in.

-> Take shortcuts.

6. Marketing

Subscribe to Early to Rise, a web-based newsletter (http://www.earlytorise.com/SuccessPartnership.htm). Even in a law practice, I have found the advice offered very valuable. Read it every day � it�s free.

Also, at the ETR website, you can read past newsletters from the archive. I believe they�re split up by subject. Find �marketing,� and read away. Or, just go back and read them from the last month or two. It doesn�t take that long to read one � 3-4 minutes. Print and save the editions that you find especially valuable.

7. Legal/Financial problems

You can avoid most problems with proper planning. �Plan the work, and work the plan,� as they say. From a financial point of view, find ETR #1088 in the archive and read it. If you can�t find it, I can forward it to you.

Most of your legal problems can be avoided by setting up the correct form, keeping the business separate from �you�, and having good documents tailored to your specific needs.

Take shortcuts and you�ll run into problems.

8. Licenses

A business license depends on the city you�re in, and whether you have a fixed location. Check with the city clerk, and they can give you all the information you need. If you have a business that doesn�t have a fixed location (like a web-based retailer), then it depends on how you set it up.

The same answer applies to a resale permit. If your product or service is subject to sales take, then you need the permit. And, you need to keep good records.

9. Taxes

Taxes are a user specific issue. Deductions I can take you might not be able to, and I won�t benefit from deductions that are open to you. One thing for sure is that a very wide array of costs will be deducible, and that many tax preparers won�t know about them or how to properly use them.

This turned out to be longer than I expected; but you did ask a lot of questions. I hope this was helpful.

rkr