Posts Tagged ‘new business’

A New Year, A New Company!

Sunday, January 1st, 2017

We work with a lot of individuals and small business owners and we often tell them that you should periodically re-evaluate your situation.

At Kristina Beavers, Attorney at Law, we did just that.  We re-evaluated our situation and determined that we really needed to become a Professional Corporation.

Why?  We have worked wonderfully as a sole proprietorship for over 8 years and when we considered a change in the past, it just didn’t seem to be necessary.  However, things change.  We get older and the ease of being a sole proprietorship also means that if anything happened to Kristina Beavers, the firm itself would need to be dissolved.  This would not be a good thing for our attorneys or our clients.

So, we have decided to incorporate and we are now officially ‘Beavers Law, P.C.’   This means that if anything happens to Kristina Beavers, the firm will continue and the attorneys and clients will be able to go on as before.

This means more details for us to watch out for, more mandatory meetings and annual reports to be completed.  But we think this is worth it to ensure the continuity of our service to our clients.

Please join us in welcoming in a New Year and a New Company!

We are also adding more attorneys and new office locations in Hampton and Williamsburg for your convenience.

If you have any questions, or wish to speak to one of our attorneys, please contact the office at 757-234-4650.

My business is an LLC…that means I’m protected…right?

Sunday, July 31st, 2011

I had a client come in recently that had a small construction company that he had set up as an LLC.  That part was fine, and a lot of people use an LLC as a business structure.  This client thought that as long as there was an LLC, all of his personal assets were protected in case there was any legal action against the company.  He had started the company with $100.00 and he had been told that his personal liability would be limited to the amount of his initial investment.

The problem is that even though he had set up the LLC, he did not really treat the LLC as a separate legal entity.  He used the company checking account to pay all of his personal expenses.  Since the income from the LLC flowed through his personal income tax return, that made sense to him.  After all, it was really his money.  So when the house payments were made using checks from the company checking account, it never dawned on him that the house might be considered as belonging to the company and might be attached if someone got a judgement against the company.

He had used an online service to create the LLC and he had filed the ‘Articles of Organization’ just as required.  He had also paid the fees to the service to get the name of his LLC approved and to get a new tax ID for his company (as an aside, you really don’t need to pay for these services).  When he went to the bank to open his checking account, the bank required that he have a business license for the area, so he did that too.  He was all set.  And since the company was his only source of income, he thought it would be easier to just use the one account for all of his banking needs.  That way, he didn’t need to pay any service fees for a different checking account.

He didn’t create an ‘Operating Agreement’ because it wasn’t required by the state and nobody at the internet site told him it might be a good idea.  He didn’t keep track of any changes to how he was managing the company or how he spent the money, because nobody told him he should.

Let’s suppose that one of his customers didn’t like something he had done and the customer sued the company.  The owner thinks his house and cars are safe because they were titled in his personal name and the customer had sued the company. The customer will probably argue that the house and vehicles really belonged to the company because all of the payments had been made by the company directly from the company checking account.  What would happen?

As with most legal situations, the answer is ‘it depends’.  The one thing that we can be sure of is that there will be legal fees to try to sort it all out.

It would be much easier to separate the business assets from the client’s personal assets if the client had created an ‘Operating Agreement’ and established a set amount each month to be paid to himself as a salary which was then put into a separate checking account out of which he paid his personal expenses.  The ‘Operating Agreement’ can also make provisions for the payment of a bonus if there is a month where the income is more than usual.  The ‘Operating Agreement’ might also make provisions for the company use of a personal asset like a truck.

In fact, the ‘Operating Agreement’ can outline a lot of different things that can happen with a company and tells everyone how the company will be managed and operated.  As long as you act according to the terms of the ‘Operating Agreement’, it is much easier to establish whether something is an asset of the company or a personal asset.

I know it seems cheaper to set up your company using an internet service instead of going to an attorney, but you should consider the possibility of future costs as well as the costs today.  Even if all you do is get an initial consultation, what you learn in that consultation might save you a lot more in the long run.

If you have any questions about this or any other legal subject, please feel free to give us a call at 757-234-4650 or visit our website at http://www.BeaversLaw.com.

Hampton Office !

Friday, May 20th, 2011

We have just opened a new satellite office to better serve our clients in the Hampton area.

Our Hampton office is in the Peninsula Town Center with an address of:

Kristina Beavers, Attorney at Law

4410 Claiborne Sq, Suite 334

Hampton, VA 23666

You can use the same phone number of 757-234-4650 to access us at either office (don’t you just love technology!)

To learn more about Kristina Beavers, Attorney at Law, check out our website at www.BeaversLaw.com

Read before you sign!

Sunday, August 1st, 2010

It seems that I get calls about legal problems in bulk.  Over the past few days I’ve had several calls from people who have signed a contract (or a lease) and then realized that it was not a good deal.

The problem is that once you have signed the contract, you are usually stuck.

You should take your time to review the contract before you sign.  Read ALL of the fine print.  And only then make the decision to sign.

Some of the language in the contract may be difficult for you to understand because it is in ‘legalese’.  This does not mean that it is bad, it may just be hard for you to understand easily.

Some of the time these contracts are about a business deal.  But sometimes these contracts can be about everyday life such as dance or music lessons.  The subject matter doesn’t really matter.  It is still a contract!

I can help.  I will review your contract and explain what it means in simple language.

Our August Special is a review of your contract for only $50 regardless of the length of the contract.

Why am I doing this service for such a low price?  Because I think it is important for you to know what you are signing before you are legally obligated to follow through.