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Small Businesses Laws

What is a small business?

A small business consists of few employees and has limited market reach. A small business can be for just about any industry there is. The government often encourages small businesses, stating that they are good for tax purposes and for the community in general. Small businesses do not really have a set definition, but they are most usually privately owned.

If a small business signs with a bigger company of the same industry, but that company cuts the small business off without warning resulting in loss of money on the small business’ part, is the small business entitled to reimbursement?

Depending on the circumstances, the small business should be entitled to reimbursement. The first step to getting money back would be to write a letter to the larger company that had been signed with and demand that a refund be given to the business. Send this by certified mail and if the company does not respond and no refund is given, the small business has every right to sue the company in small claims court. If they first contacted the small business, then this small business can sue in their own area of business. If the small business contacted the company first, then the small business must file suit in the company’s county.

If a small business owner wants to sue an out of state business, what steps need to be taken in order to do so?

If no contract was held that established which state would rule over the disputes between the two businesses, then the small business owner would need to get some sort of council in the state that the other business is in. Finding a reputable council to help would enable the business owner to file suit against the other company for breach of contract.

If someone wants to open a small business, should they open it as LLC, or as the personal owner?

When opening a business, it is often considered risky and possibly even dangerous to open it without creating an LLC. When deciding which one is right for certain people and their specific situations, it is good to take a couple things into consideration. Business liability insurance may be extremely important if one chooses to open the business as a personal owner, and sometimes even as an LLC. The reason for this is that if something regrettable happened and resulted in a serious injury or possibly even death, a personal injury attorney would most likely hold the owner personally responsible.

If one owns a small business, can they turn the business over to a relative without a sale amount or does some sort of sale have to be involved in the exchange?

If the owner wants to turn the business over to a family member they are allowed to do so without a sale. The only thing to take into consideration when doing so is the fact that the owner may incur transfer tax when exchanging the business from one owner to their family member.

When dealing with small businesses, it is rather easy for the owners to become confused about any technicalities that may arise. There can be many different types of questions that need to be asked, and many answers for these questions. When these questions do arise, it’s always best to ask the Experts.

Ask a Business Lawyer

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Law Pro, Attorney
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11688690
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Recent Small Business Questions

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    This is all the same case as my previous questions. A big factor in my ability to collect is other debts or judgements against the person who owes me the money (what is the proper term?) There were IRS liens against him (Or are they only against his property??) How can I tell if they are still valid? I have the Instrument numbers. How long before he might be able to get the IRS to release them ? He may file BK once the IRS liens are released. Besides opposing the dismissal based on a fraud claim what other ways are there to prevent the discharge? Can I negotiate with the IRS to not release his tax liens until he settles with me?? Do they ever do that, use their power to help a citizen?

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    I turned an account (a former resident) over to a collection agency in 2007. They never collected it. How long does a collection agency own an account?
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