Tag Archives: Business

Important Questions to ask about your Business Debt

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Being a business owner is a lot of work. You invest your time, money and effort into making your business a success. But if your entity is struggling, it can have a significant impact on your personal finances. If your company is not making a profit, you are likely trying to figure out how you can deal with your business debt. Below are a few important questions to ask yourself:

Can I save the business?

If you have run the numbers or you’ve been struggling to make ends meet for a long time, it may be time to face the hard truth that the business cannot be saved. You may want to avoid having the business file for bankruptcy protection, but not at the expense of your own personal financial stability. Before depleting personal funds to save your entity, confer with us so we can explore all of your available debt relief options.

Can I lower my expenses?

You might be surprised at how much you can help your business by cutting back on your expenses. If you are unable or unwilling to use personal funds to keep your business afloat, consider the ways you can reduce your costs. Many times this requires you to be creative or take certain steps that are unattractive, but if the cutbacks help you keep the doors to your business open, they are likely worth it.

Can I increase sales?

Most business owners do everything in their power to increase their sales. If your company’s exposure has been limited to one market, consider ways to expand. With the use of the internet, there are a variety of ways to get your company’s name out there at very little cost. And don’t forget the customers or clients you already have – contact them and offer incentives for them to give you repeat business or to pay you quicker. It may even be beneficial to confer with your suppliers and negotiate discounts and/or payment plans.

If your business has been sued for fraud or breach of contract, the legal team at Faro & Crowder can help. Our office is located in Melbourne, but we proudly serve businesses across the State of Florida.

Why Are Purchase Orders Important?

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The simple answer to this question is that an effective purchase order is an essential component to any successful business. Whether you are just starting your business or you are more experienced, it is important to review your purchase order to verify it is accomplishing your goals.

A purchase order is a document sent from a buyer to a supplier requesting an order. The document sets forth the type of item, the quantity and quality requested, and the agreed-upon price. It should also include shipping details and ve information. Purchase orders can range from simple one-page forms that employees can fill out to more complex orders with many details included. When the seller accepts the terms of the purchase order, a legally binding contract is formed which protects both parties.

Many entities forego using purchase orders in an effort to increase response time or because they have already established a working relationship with the vendor. However, as your business grows and relationships change, communication challenges can negatively impact your efficiency if purchase orders are not used. The purchase order is a tool that allows the parties to determine where the request went awry, fix any errors and maintain amicable business relations. For example, if a product is delivered in unsatisfactory condition, the buyer has documentation that proves what was expected and it reduces the likelihood of legal disputes arising over the issue.

If your entity is using a paper procurement process, it can create a lot of paperwork for you to maintain. You may want to consider using digital purchase orders and electronic signatures where available. This allows you to access the purchase records anywhere at any time. Having access to real-time data it an option that companies of all sizes should enjoy. However, the most important thing to remember is that however you handle it, the foundation of procurement success is the purchase order.

If you have questions about purchase orders or other business matters, we have the answers. Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.


Growing Your Start-Up Business

Most entrepreneurs dream of having overnight success. Unfortunately, this is the rare exception. If you are starting your own business, it is important to have patience when it comes to growing your business.

Growing Your Start Up Business | Melbourne, Florida

So, what steps can you take to help ensure your new venture is a success? There is no magic formula you can follow, but below are a few considerations that can assist you in moving your entity in the right direction:

Employees

When you are able to hire employees, it is imperative that you choose other individuals that are motivated and willing to support you in achieving your goals. It can be difficult for start-up companies to entice top-tier employees to work with them because the company typically cannot offer high salaries, so you may want to get creative with your job offers. For example, you may offer a small ownership in the business or other benefits that the employee would not get elsewhere.

Limit Risks

Although it is risky to start your own business, you should still take steps to reduce any potential threats to your entity’s ability to succeed and grow. It is important to consult with your business’s insurance provider on how you can accomplish this, as well as taking measures to ensure that your entity can recover if it suffers losses.

Customers

Your customers or clients must be your top priority. You must focus on creating a customer experience that stands out above the competition. The best advertising and marketing you can get is by word-of-mouth referrals. If your existing customers continue to come back and you keep adding new customers, your business will grow much quicker.

Flexible Planning

A start-up company must have a plan to keep it grounded and focused on its goals. However, you must also be flexible as things change and be able to adapt if needed.

Contact Faro & Crowder, PA today to learn more about growing your start-up business

If you are starting a new business and you need advice on how to increase the likelihood of its success, the legal team at Faro & Crowder is ready to help. Our office is located in Melbourne, but we proudly serve businesses across the State of Florida.

Faro & Crowder, PA
Phone: 321-784-8158
Address:
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

Fraud Claims versus Breach of Contract Claims

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Attorney serving Viera, Florida

Many lawsuits involve a variety of different claims. In fact, most plaintiffs allege anything and everything they can in the hopes that at least one claim will be successful. In the business world, it is common for a plaintiff to allege that fraud occurred when the claim is really a simple breach of contract allegation. Of course, alleging fraud is also a tactic that is sued to attempt to gain leverage in the lawsuit. As a result, it is essential that your business defense attorney takes immediate action to have any meritless fraud allegations dismissed. There are several defenses available to a claim of fraud:

Failure to prove material misrepresentation

In order to prove a fraud claim, the plaintiff must establish a material misrepresentation of presently existing or past fact. It is common for a plaintiff to not adequately plead or prove this element. For example, if a seller promises to deliver its product at a date in the future and breaks its promise, the statement is not about a presently existing or past fact. Most broken promises are not sufficient to support a fraud claim, but they could be the basis for a breach of contract claim.

Opinions

If the fraud claim is only supported by a statement of opinion or puffery, there is no statement of fact. Without a statement of fact, there cannot be an actual misrepresentation.

Conclusory statements

When a plaintiff alleges fraud, there is a heightened pleading requirement. The allegations of fraud must be pled with “particularity.” It is common for a plaintiff to make conclusory statements in the petition or complaint without setting forth the particular facts that support the fraud claim. As a result, the fraud claim should fail for failure to properly plead it.

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

Services Areas

We provide services throughout Central Florida including: Melbourne, Titusville, Palm Bay, Merritt Island, Cocoa, Cocoa Beach, Satellite Beach, West Melbourne, Cape Canaveral, Viera and Eau Gallie.

Get In Touch with Faro & Crowder, PA

Faro & Crowder, PA
Phone: 321-784-8158
Address:
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

The information on this blog or any blog is not intended as, and should not be taken as, legal advice.

Should Your Entity be a Limited Partnership?

Limited Business Partnership

Attorney serving Palm Bay, Florida

There are a variety of different legal entities to choose from when you are starting a business. The limited partnership (LP) is an important entity to consider if you want to have partners, but you want to be protected from liability.

The LP is typically used by businesses that want to work with a partner on a single project or for a limited period of time. In fact, the LP is commonly used in real estate development projects. The general partner is allowed to manage the daily operations of the construction job while the limited partners invest money. The LP is beneficial for investors who are interested in investing their money while having limited liability.

A few other pros of forming a LP include:

  • Anonymity can be maintained because the LP agreement is usually a private document
  • The LP is a separate legal entity that can own real property or other assets
  • There are pass-through taxation benefits, so profits from the LP are reported on the partner’s personal tax returns
  • Forming a LP can help with establishing legitimacy and credibility for the business
  • Employee benefits can be deducted
  • The LP provides protection from lawsuits. If a limited partner is sued, the property owned by the LP is protected. Additionally, if the LP is sued, the limited partners can be shielded from liability.

There are a few cons associated with forming a LP. The burden of running the business and the liability for the debts of the LP falls on the general partner. Also, in order to comply with the mandatory corporate formalities that keep the business in good-standing, you must keep up with a significant amount of paperwork. Finally, there is divided power among the partners, which can sometimes lead to difficulties.

If you are interested in learning more about forming a LP, contact Faro & Crowder, PA today.


Is it Time to Sell Your Business?

As a business owner, you may be trying to decide when or if to sell your company. Do you wait for it to hit a certain size? Does it need to be worth a certain amount? These are common approaches, but maybe there is a better way to determine when to hang out the “for sale” sign. Put simply, when you reach the point where you can sell your business and amass sufficient funds after the taxes are paid to live “comfortably” for the rest of your life, it is time to sell. Otherwise, prolonging the sale has no meaningful upside.

Sell Your Business | Brevard County Attorney

How do you know when you have reached this point? First, you must determine how much money you need to live on each year for the rest of your life. Most people overestimate this number, so try to be realistic.

You must also determine what your company is worth. There is no clear-cut formula for calculating its worth, but it is important to at least have a rough estimate of its value. You may want to hire a professional to help you with this task.

It is important to understand how much money will belong to you after the sale. Thus, you should make sure you understand your tax liability and the expenses related to the sale. Again, you should seek the assistance of a professional with this task. It may be possible to take certain steps before the sale, such as restructuring your company, to decrease your tax liability before you sell.

Once you have the full picture, you can make a smart decision on whether or not to sell your business. If you can meet your financial goals by selling now, prolonging the sale will only subject you to risk. It is important to ask yourself if there is some reason beyond simply funding your retirement that justifies holding on to the business.

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in discussing your business, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

Services Areas

We provide services throughout Central Florida including: Melbourne, Titusville, Palm Bay, Merritt Island, Cocoa, Cocoa Beach, Satellite Beach, West Melbourne, Cape Canaveral, Viera and Eau Gallie.

Get In Touch with Faro & Crowder, PA

Faro & Crowder, PA
Phone: 321-784-8158
Address:
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

The information on this blog or any blog is not intended as, and should not be taken as, legal advice.

Contracts Every Business Needs

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If you own a business, it is imperative that you take precautionary measures to protect it legally. In other words, you need a great business attorney and contracts that protect your best interests. There is no easy answer for what legal agreements are the most effective, because every case is different. However, there are three main types of contracts that most businesses can benefit from having in place.

Owner Agreements

If you own the business with another party or parties, it is important to have a written contract between all of the co-owners. This is true whether you are a LLC, partnership or corporation. Common examples of this type of agreement are operating agreements, shareholders’ agreements, founders’ agreements and partnership agreements.

The purpose of ownership agreements is to solidify the deal made between the co-founders. They should cover topics such as ownership percentages, salaries, capital contributions and what happens to the business if the co-owners part ways.

Worker Agreements

Most businesses only use agreements for their employees, not for their independent contractors. However, an independent contractor may have access to your network, databases, website or financial information. Thus, having a formal agreement is essential to protect you by outlining the job to be performed, a confidentiality agreement to prevent disclosure of your proprietary information and non-solicitation provisions. You should also confirm with legal counsel that you are not treating your independent contractors like employees, because there can be stiff penalties for improper classification.

Vendor/Supplier Agreements

Depending on your industry, you may depend upon vendors and suppliers to meet your customer’s needs. Thus, it is important to have a carefully drafted agreement that helps ensure that your (and your customer’s) needs will be met and that protects if you they are not. You may also need a contract with your customers outlining the business relationship and providing legal protections.

There are other types of contracts that may be necessary to help ensure the success of your business, but the above contracts provide a good place to start. If you have questions regarding the agreements discussed above or you would like to learn more about the legal services we provide, call us to schedule a free consultation.


Legal Pitfalls Your Business Must Avoid

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When you are starting a new business, there are many pitfalls you want to avoid. The difficult part is that most of the time you never see them coming. If this business is your first one, understanding the legal risks and taking preventative action can save you money, time and heartache. Below are a few obstacles to be aware of:

Don’t rely on oral agreements. When your business is first starting out, people will make promises you want to rely upon. However, having a personal relationship with the other party does not eliminate the need for a written agreement. Don’t think you will be able to just “work it out” if disputes arise. Having a written contract is well worth the time and money.

Patent infringement. Before you spend your life savings on your new idea that is going to take the world by storm, you’d better make sure the idea doesn’t already exist. Patent infringement lawsuits can be expensive. Also, losing your idea after you are heavily invested in it can be devastating. Have a lawyer perform a search to determine if your idea has already been patented or if you should obtain a patent to protect it.

Unfair competition. If you hire employees from your competitor, it can be a huge benefit. However, if your new hire is converting business from his old employer to you, it can cause legal troubles for you. It is important to make sure you are not violating the unfair competition laws that prevent you from using protected information to obtain new accounts.

The business world is full of legal traps, so it is imperative that you get help from a seasoned attorney that can protect your best interests. Contact the skilled attorneys at Faro & Crowder to schedule a free consultation. We are located in Melbourne and proudly serve all of Central Florida.


How Entrepreneurs Can Ensure Their Business is a Success

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If you are starting your own business, you are probably excited, scared and a bit overwhelmed. Below are a few tips on how you can help ensure that your business is a success:

Retain a good attorney

Don’t just find a lawyer – do some research, interview several candidates, and select the one that you deem the most trustworthy and knowledgeable. If you go with the cheapest one, you might be sorry. Having a seasoned attorney with experience representing businesses similar to yours can make or break your company.

Work with an accountant

. It is important to get financial advice from the very start from a professional experienced in helping start-up businesses. A good accountant or CPA will prepare you for your financial obligations so you aren’t caught unaware. For example, your business can be running along smoothly until it gets hit with a large tax bill. Additionally, having a tax professional assist you with preparing your returns can help you find opportunities to save.

Hire “up.”

Don’t settle when it comes to hiring your team. This can be difficult initially when funds are low, but you should expect a certain level of quality when hiring. The team you work with can help your business soar, but the wrong group can cause your business to suffer. It is okay to be picky. You want to work with individuals who make you and your business better.

Network

As a new business owner, you are on the job 24/7. Promoting your brand is a full-time job. Fortunately, social media is making this task easier, but don’t forget to target the professionals and organizations that can help your business. In short, be prepared to network at all times and connect with anyone you meet. You never know where your next client or big deal may come from!

Contact us for a consultation

If you are a new business owner or you would like to learn more about the legal services we provide, call us to schedule a free consultation. We are located in Melbourne and proudly serve all of Central Florida including the cities of Palm Bay, West Melbourne, Satellite Beach, Titusville, Eau Gallie and Orlando.


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