ADVANCING FUNDS TO YOUR CORPORATION: LOANS OR CAPITAL CONTRIBUTIONS?

BARBARA WELTMAN | April 20, 2017

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Many small businesses depend on infusions of cash from their owners in order to meet cash flow needs or finance expansion plans.

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Bharmal System Designers

Bharmal System Designers has established as a software house in January 2006. With almost five years of completion, company has grown to become a strong force in market. Our online and offline products have been implemented in various organizations and with the team of professionals Bharmal System Designers is getting stronger day by day. We have successfully designed and implemented number of expert applications that suit our customers’ business needs. We have a team with more than 6 years of experience in desktop and web applications who willing to take challenging work and put them in best use for you.

OTHER ARTICLES

Business Technology Trends 2020: What is the SMB buyer buying?

Article | February 19, 2020

Where are businesses spending their pretty penny these days? Enterprises, SMBs alike have successfully hopped on the current technology bandwagon. As technology keeps advancing forth, it is changing the business ecosystem. When we say infrastructure, it roughly translates to a new technology adopted by business for a great ROI. Disruptors, advancements, up gradations, there are many ways we see the digital world seamlessly merging with the business world. 44% businesses worldwide will increase their tech spending in 2020 according to Comptia

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How to Pivot Your Small Business Strategy During the COVID-19 Crisis

Article | April 1, 2020

As small business owners, we’re prepared for a lot of things, whether it’s a seasonal shift in sales or an unexpected employee absence we have to step in and cover. But we’ve never seen anything like the COVID-19 pandemic, leaving us uncertain about how to cope in these strange times. I know that this is a scary and isolating time both personally and professionally. I hope you’re staying safe and healthy, and that this article can help you with planning for business challenges related to the coronavirus. I’ve personally had to pivot many times as an entrepreneur, and while it can be stressful, it can also be a time of innovation and growth.

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Avoid Small Business Lending Scams and Fraud Related to COVID-19

Article | April 2, 2020

With nearly $400 billion on the line between the Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP), I guess it shouldn’t be a surprise that there would be fraudsters targeting small business owners during these already challenging times. Avoiding small business lending scams and fraud related to COVID-19 requires that you are diligent and on the lookout for grant fraud, loan fraud, and phishing scams.

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The Four Most Conventional Small Business Legal Issues Confronted

Article | September 1, 2021

While small business owners are typically preoccupied with the day-to-day operations of their businesses, they frequently ignore the small business legal issues and obstacles that they are likely to encounter in the future. Thus, it is a pressing need of an hour, majorly after the COVID-19, to identify their legal challenges and be well prepared for them. The neglected or untimely addressing of the legal issues could cost you a big deal and prove disastrous, and might even be challenging to recover. This article will describe legal issues affecting businesses and how to avoid them tactfully. There are myriad essential aspects of the business to be considered, such as overhead costs, marketing, employee management, business & marketing budget, etc. Among all these, legal aspects of business also hold a similar level of importance but are usually underestimated issues for business. Legal counsel from a reputable legal firm can guide you in identifying prospective issues and preparing for the future. Spend time ensuring that your firm is legally solid. Here are the most common small business legal issues encountered, and you should be cautious about. Establishing the Wrong Business Structure Establishing the wrong business structure stands first in the list of legal issues and is also critical. The business entity is classified into sole proprietorship, partnership, LLC, S-Corp, or C-Corp, and each has its own set of tax structure and legal obligations. However, registering under the wrong ones has a severe repercussion. Business law issues are not limited to tax laws; state and federal legislation changes may also impact a company's risk profile. Contracts are another significant legal issue raised by COVID-19. Unfortunately, once the courts begin to normalize their work environment, precedence will be given to criminal and family law proceedings. Thus, resulting in delays in contract disputes, which will have to wait years to be resolved. Inadequate Protection of Intellectual Property Businesses are constantly developing new and distinctive ideas, technologies, products, and marketing strategies. However, many small business owners believe that intellectual property issues are not their responsibility and only large corporations deal with them. This is the reason often these legal aspects of business are a common issue among small businesses. It is advisable to do in-depth research before naming your business or launching any new products or services to avoid using and enforcing identical trademarks, which will count as infringement. The consequences of infringement are atrocious. The owner will have to alter their name and suffer legal consequences, including damages and attorney's costs. Without trademark registration, ventures risk losing the right to their branding, wiping out years of effort and investment. Securing a trademark registration precludes the occurrence of any of these issues and inconveniences. It is needful to protect intellectual property and law for small businesses. So, consult an expert attorney or business adviser to identify what should be secured by copyright, patent, or trademark. Improper Licensing Every business must have a valid license to operate. However, it may be perplexing and challenging for novice business owners. Before you may lawfully trade, you must obtain a license. Improper licensing leads to business law issues and is one of the most common small business legal issues. Government licensing requirements vary according to the kind, size, and location of the firm. Additionally, the business license is contingent upon the goods or services provided by the business. Therefore, licensing costs vary according to location. Obtaining a license for your particular business demonstrates that you are knowledgeable about your industry and are capable of operating the appropriate equipment. If you are discovered conducting business without the proper license, you may face severe fines or possibly have your business activities halted. An experienced small business lawyer will help you through the paperwork and ensure that your business is properly licensed. Not Hiring or Firing Employees the Right Way Among many legal concerns, one of the most frequent business legal issues for small businesses are improper employment or termination of workers. Unfortunately, numerous small business owners make the error of employing or terminating staff without proper paperwork or agreement. Inadequately executed agreements or employee contracts expose your small business to litigation. Having a written contract is necessary and differs as per the employees whether they are full-time, part-time, and casual. The written contract includes information about the employee and employment details such as: Stipulate payment Rights and responsibilities of the employees Benefits Termination clauses Date the contract was signed Potential reasons for termination The employment contract needs to clarify the terms of employment, conduct, grounds of termination, expected behavior from employees, etc. Employees are asked to abide by this contract. In case of violation, within your legal rights, you can terminate their employment and safeguard every small business's needs. If you have employees or contractors, you must adhere to small businesses' federal and state employment laws. Conclusion Dealing with the legal aspects of business is not a pleasant task, but you cannot ignore it, and if you do, you may have to pay the price. Small business legal issues are critical business law issues that impact a large number of small business owners. Few small business owners are familiar with the legal elements of a business. It is crucial to engage a legal team to assist you in navigating it smoothly and avoiding the danger of destroying the future of your business. Frequently Asked Questions: What are the primary legal issues that small businesses face? Small businesses face many legal issues in their business operation, but the major ones are: Establishing the Wrong Business Structure Shareholders' Agreement Improper Licensing Inadequate Protection of Intellectual Property Not Hiring or Firing Employees the Right Way Response to Changes in the Law and Regulations Employee Termination How can a business overcome legal issues? Below are few tips for businesses to overcome legal issues: Recognize your regulations Inform yourself about labor laws. Acquaint yourself with intellectual property Select the appropriate attorney Maintain Vigilance { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What are the primary legal issues that small businesses face?", "acceptedAnswer": { "@type": "Answer", "text": "Small businesses face many legal issues in their business operation, but the major ones are: Establishing the Wrong Business Structure Shareholders' Agreement Improper Licensing Inadequate Protection of Intellectual Property Not Hiring or Firing Employees the Right Way Response to Changes in the Law and Regulations Employee Termination" } },{ "@type": "Question", "name": "How can a business overcome legal issues?", "acceptedAnswer": { "@type": "Answer", "text": "Below are few tips for businesses to overcome legal issues: Recognize your regulations Inform yourself about labor laws. Acquaint yourself with intellectual property Select the appropriate attorney Maintain Vigilance" } }] }

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Spotlight

Bharmal System Designers

Bharmal System Designers has established as a software house in January 2006. With almost five years of completion, company has grown to become a strong force in market. Our online and offline products have been implemented in various organizations and with the team of professionals Bharmal System Designers is getting stronger day by day. We have successfully designed and implemented number of expert applications that suit our customers’ business needs. We have a team with more than 6 years of experience in desktop and web applications who willing to take challenging work and put them in best use for you.

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