Businesses across the globe have experienced unprecedented interruptions and closures because of the COVID-19 pandemic. As a result, many businesses are finding it difficult to perform their contractual obligations. Consequently, a common but often overlooked contractual clause is in the limelight: the force majeure clause. Contrary to popular belief, the mere existence of a force majeure clause does not invalidate …
How You Can Keep Customer Data Safe
In today’s data-driven world, small businesses often find themselves in possession of sensitive customer data. As the collection of data increases, customers grow more suspicious of the means and methods used to collect and store data. In response to this growing concern, we are seeing increased legislation pertaining to the collection, storage, and distribution of data. Laws like the California …
Ask Cari: Does Your Website Need a Privacy Policy or Terms of Use?
Conversations about data privacy policies and website terms of use have become more common in recent months. Large companies like Facebook,[1] Expedia,[2] and Dick’s Sporting Goods[3] have been involved in litigation involving agreements that address these very issues. The questions on most business owners’ minds are “What are these agreements?” and “Do I need them on my website?” Privacy policies …
Ask Cari: What are Legal Considerations for my Business during a Pandemic: Responding to COVID-19?
In a matter of weeks, the COVID-19 pandemic has impacted the world and forced communities to reevaluate everything. Despite the unpredictability that has accompanied this global crisis, it is not too late to implement changes to protect you, your employees, and your business. Here are some tips and strategies to help you navigate these challenges and the ones to come. …
Ask Cari: What Small Business Owners Should Know About the COVID-19 Stimulus Package
As small business owners grapple with the economic realities of nationwide stay-home orders and social distancing mandates, legislatures have been updating laws and developing new programs to keep the economy afloat. The latest and most groundbreaking is the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2.2 trillion stimulus package aimed at supporting individuals, businesses, and governments now and …
Ask Cari: What Are the Benefits and Risks of Forming an LLC?
If you have decided to start a business and are researching the available business entity types, you may repeatedly come across the terms “limited liability company” and “LLC,” but you might not understand what this type of entity is or whether it is right for you. A limited liability company (LLC) is a business entity that protects its owners, referred …
Steps to Protect Your Small Business from Non-Paying Customers
Unfortunately, most businesses must deal with non-paying customers at least occasionally. You can safeguard the time and money you have invested in your small business by taking several steps, both to lessen the likelihood of nonpayment and to obtain the amount owed once a customer has failed to make a timely payment. Be Proactive Screen potential customers in advance. Particularly …
Ask Cari: What Do Employers Need to Know about Noncompetes?
A small business that has invested substantial resources in developing a product or a customer base could be devastated if its employees then go to work for a competitor down the street or set up their own competing business. A noncompetition agreement is an important tool that could protect your business from former employees who could otherwise reveal or use …
Ask Cari: What are Stay Bonus Agreements?
Do you have certain key employees who help make your family business a success? Keeping those employees may be essential to a successful transition of ownership and management to your children or another new owner when you retire or pass away. A “stay bonus” (also called a retention bonus) is a strategy that is frequently used by large companies during …
Ask Cari: How do I Legally Terminate an Employee?
Most small business owners will occasionally have to face the unpleasant task of firing an employee. Small businesses, in particular, rely heavily on each employee. An underperforming employee may not only lower the morale of other employees who have to pick up the slack, but may also jeopardize the success of the business. When an employee must be terminated, it …
Sales Tax: What You Need to Know
Many small business owners contend with collecting, reporting, and paying sales tax. Although there is currently no federal sales tax, 45 states, and many localities, as well as the District of Columbia, have a sales tax. Different taxing authorities have their own regulations, tax rates, exemptions, and deadlines, which can be quite confusing, especially for entrepreneurs who have just started …
DIY Legal: The Hidden Cost for Your Business
Information is instantaneously available due to the rise of the internet. Additionally, many services that were not available in the past, including do-it-yourself (DIY) legal forms also exist. As a result, it is tempting to think that the forms provided by these DIY services can be a low-cost substitute for the services of an attorney. The reality is business owners …