Fayetteville, AR Small Business Attorney
Beginning a new business or keeping your business organized and compliant with the law is an exhausting effort. Operating a small business means that you must perform various tasks like selecting a business format and creating contracts for dealings with clients. While you do not need an attorney to perform every task related to your business, it is important to know when you should hire one. If you need assistance with a legal issue regarding your company, you should contact an experienced Fayetteville small business attorney.
At Gunn Kieklak Dennis, LLP, our business law attorneys are prepared to help you with a variety of legal issues that may be affecting your company. Running a business is not easy, but we are here to help you alleviate the burdens of entrepreneurship. To schedule a confidential legal consultation, call Gunn Kieklak Dennis, LLP at (479) 717-9068, or contact us online.
Business Formation in Arkansas
New business owners have a wide range of issues they need to sort out. For example, they need to determine the cost of their services or products and develop relationships with new clients, all while managing several other tasks.
One of the first decisions that a potential business owner must make is forming their business entity. This means choosing between forming a partnership, limited liability company (LLC), corporation, or another type of entity. Each type of business formation has different advantages and drawbacks depending on your particular needs.
A limited liability company has various advantages. One of the biggest advantages of an LLC is limited personal liability. This means that the LLC has its own debts and obligations that do not affect the owners of the company. This is different from a sole proprietorship or a general partnership where your personal assets are on the hook if you encounter debt or legal issues. Another advantage of LLCs is that they do not require as much micromanagement and paperwork as a corporation. For example, corporations are legally required to hold shareholder meetings and draft annual reports.
S corporations are another type of business formation. The main advantage of S corporations is pass-through taxation. This means that the company does not pay federal income taxes, and the profits and losses of the corporation are “passed through” to the shareholders. The shareholders must then report any income or losses on their personal tax returns. Like LLCs, S corporations do not hold the owners liable for lawsuits and judgments levied against the corporation. S corporations can also have a maximum of 100 shareholders.
There are many other business formation choices not listed here that may suit your needs perfectly. You should contact an experienced Fayetteville business lawyer to discuss your business formation options.
Business Transaction Issues for Small Businesses in Fayetteville
If you have determined the optimal business formation for your company, you should then focus on other areas of business, like the formation of contracts with employees and clients.
An unambiguous employee policy is necessary for a business to run smoothly. Your employees should be aware of what you require of them and how you want your business to operate. We can help you develop an employee policy that meets your unique needs, and that complies with state and federal laws.
If you are running a company that requires the use of trade secrets and other processes that you do not want to be public knowledge, you should consider noncompete agreements and nondisclosure agreements (NDAs). These agreements prevent former employees from working for one of your competitors and sharing the knowledge they learned while working for your company. A noncompete agreement must be carefully drafted to avoid including provisions that are unenforceable or that may get the entire contract deemed invalid. It is also worth considering a non-disclosure agreement to prevent employees from openly discussing certain business secrets.
When forming a contract with a client, you should be sure to include terms that protect your business in the event that a breach occurs. Many contract disputes arise when one party breaches and believes that they should not be held liable for the breach. For example, if you have a contract to receive materials from a supplier, and they cannot procure those materials as agreed, they may try to claim that the breach was unforeseeable. A solid contract sets out who has the burden of curing a breach or how other remedies and solutions will proceed.
Our Commercial Lawyers Can Help You Maintain Your Small Business
If you need assistance in dealing with business law issues that are affecting your company, you should contact an experienced Fayetteville small business lawyer. At Gunn Kieklak Dennis, LLP, our dedicated lawyers have represented residents of Fayetteville and Northwest Arkansas for years, and we would be proud to represent you. To schedule a confidential consultation, contact us at (479) 717-9068, or contact us online.