General Practice, Solo & Small Firm Division

A service of the ABA General Practice, Solo & Small Firm Division

TheBuzz

American Bar Association - Defending Liberty, Pursuing Justice

Feb 2008

Buzz Book

This book is designed to help lawyers provide more effective legal counsel and strategic guidance to small business clients, as well as produce relevant documents, and identify issues that require further research or a specialist. The book is accompanied by a CD-ROM that includes sample documents and checklists for easy customization as well as resources for obtaining additional forms and information on a number of issues that small businesses commonly face.

Some of the topics covered include:

  • Protecting intellectual property
  • Business plans
  • Contracts for small businesses
  • Various legal structures for small business and how to organize or clean them up
  • Raising money through private placements
  • Seed financing and angel investors
  • Venture capital
  • Hiring employees
  • Liquidity events

Price: $79.95; $69.95 for GP|Solo Members.
Buy your copy today online or call 800.285.2221.

Excerpt

Practice tip: Avoid unnecessary taxes and regulations

Avoiding unnecessary taxes and regulations should be part of every business strategy; in fancy business schools, this is also known as the KISS method ("keep it simple, stupid"). Many entrepreneurs believe it is less expensive to form their new business in a particular state, other than the one in which they operate, or that there may be legal advantages to organizing their new corporation or LLC in another state. However, in most cases, the differences in state laws will not significantly affect the business. So, if a company incorporates in another state, its owners are merely doubling their tax and regulatory obligations. They will also have to register to do business in the state where they operate, and comply with the fees, taxes, and filing requirements of both states. Moreover, the company will likely be required to pay a corporate agent to represent it as its agent of service of process in its state of formation, if it does not have operations there, thus adding more annual expense to its business.