Business Law Attorneys

Understanding 1031 Exchanges for Investment Properties in South Carolina

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For real estate investors in Greenville, South Carolina, building a portfolio often involves strategically buying and selling properties. A significant consideration in this process is the impact of capital gains taxes, which can take a substantial portion of the profits from a sale. One of the most effective tools available to defer these taxes is a Section 1031 exchange.

What Is a 1031 Exchange?

A 1031 exchange, also known as a like-kind exchange, gets its name from Section 1031 of the U.S. Internal Revenue Code. This provision allows a real estate investor to sell an investment property and defer the payment of capital gains taxes, provided the proceeds are used to purchase another “like-kind” property.

It is important to recognize that a 1031 exchange is a tax-deferral strategy, not a tax-elimination one. The tax obligation is not forgiven; it is essentially postponed. By continuously exchanging properties, an investor can theoretically defer the capital gains tax liability indefinitely. The deferred gain is carried over from one investment property to the next, and taxes are typically only due when the investor finally sells a property for cash without reinvesting in a subsequent like-kind property.

Defining “Like-Kind” Property in South Carolina

The term “like-kind” can be a point of confusion, but for real estate, the definition is quite broad. It refers to the nature or character of the property, not its grade or quality. In South Carolina, as in the rest of the country, most real property is considered like-kind to other real property, as long as both are held for investment or productive use in a trade or business.

This offers Greenville investors a great deal of flexibility. For instance, an investor could exchange:

  • A single-family rental home in the Augusta Road area for a commercial office building downtown.
  • A parcel of raw land near Travelers Rest for an apartment complex in Spartanburg.
  • A retail storefront on Haywood Road for industrial warehouse space.
  • A long-term vacation rental in the Blue Ridge Mountains for a portfolio of rental properties.

The key is that both the property being sold and the property being acquired must be held for investment purposes. A primary residence cannot be exchanged for a rental property, nor can a “fix-and-flip” property, as it is considered property held primarily for sale rather than for investment.

The Strict Timelines You Cannot Miss

The Internal Revenue Service imposes two critical and inflexible deadlines that every investor must meet for a 1031 exchange to be valid. The clock starts ticking the moment the sale of your original property closes.

The 45-Day Identification Period: From the date of closing on your sold property (the “relinquished property”), you have exactly 45 calendar days to identify potential replacement properties. This identification must be in writing, signed, and delivered to your Qualified Intermediary. You can identify properties in one of three ways:

  • The Three-Property Rule: Identify up to three potential properties of any value.
  • The 200% Rule: Identify any number of properties, as long as their combined fair market value does not exceed 200% of the value of your relinquished property.
  • The 95% Rule: Identify any number of properties, but you must acquire and close on at least 95% of the total value of the properties identified.

The 180-Day Exchange Period: You must close on the purchase of one or more of the identified replacement properties within 180 calendar days of the closing of your relinquished property, or by the due date of your tax return for the year of the sale, whichever is earlier.

These deadlines are absolute and include weekends and holidays. There are almost no exceptions or extensions available. Missing either deadline will disqualify the entire exchange, making your sale proceeds immediately subject to capital gains tax.

How Does the 1031 Exchange Process Work?

The mechanics of a 1031 exchange are highly structured to ensure the investor never has actual or “constructive receipt” of the sale proceeds. Here is a typical step-by-step outline:

  • Plan the Exchange: Before closing on the property you intend to sell, you must decide to initiate a 1031 exchange and add specific language to the sale agreement indicating your intent.
  • Engage a Qualified Intermediary (QI): You must enter into an agreement with a QI before the closing. The QI is an independent third party that facilitates the exchange by holding the proceeds from the sale of the relinquished property.
  • Close on the Relinquished Property: At closing, the funds are wired directly from the buyer to your QI. The money must not go to you, your attorney, or your real estate agent.
  • Identify Replacement Properties: Within the 45-day window, you formally identify potential replacement properties and submit the list to your QI.
  • Contract for Replacement Property: You enter into a purchase agreement for the property you intend to acquire.
  • Close on the Replacement Property: The QI uses the exchange funds to purchase the replacement property on your behalf. The title is then deeded directly to you. This must be completed within the 180-day exchange period.

The Important Role of a Qualified Intermediary

A Qualified Intermediary is not just recommended; they are a requirement for nearly every 1031 exchange. Their primary purpose is to act as a neutral custodian of the funds to prevent the investor from having control over them. If an investor has access to the money, even for a moment, the IRS considers it a taxable sale.

A QI cannot be you or a “disqualified person,” which includes your employee, attorney, accountant, investment banker, or real estate agent if they have acted for you in that capacity within the two years prior to the exchange. The QI is responsible for preparing the necessary legal documents, holding the funds in a secure account, and ensuring the transaction adheres to IRS regulations.

What Is “Boot” and How Does It Affect Your Exchange?

To defer all capital gains tax, an investor generally must reinvest all the net equity from the relinquished property and acquire a replacement property of equal or greater value with the same or greater amount of debt. When this does not happen, the difference is known as “boot.” Any boot received in an exchange is taxable.

There are two common types of boot:

  • Cash Boot: This is any cash from the sale that is not reinvested into the replacement property. For example, if you sell a property for $500,000 and only use $450,000 to purchase the replacement property, the leftover $50,000 is cash boot and is taxable.
  • Mortgage Boot (Debt Relief): This occurs if the mortgage on the replacement property is less than the mortgage you had on the relinquished property. For example, if you paid off a $200,000 mortgage when you sold your old property but only took on a $150,000 mortgage for the new one, the $50,000 difference in debt is considered mortgage boot and is generally taxable unless offset by new cash added to the deal.

Common Pitfalls to Avoid in a 1031 Exchange

The strict rules of a 1031 exchange create several potential traps for unwary investors. Awareness is key to avoiding these costly mistakes.

  • Missing Deadlines: The 45-day and 180-day timelines are the most common points of failure.
  • Constructive Receipt of Funds: Accidentally taking control of the sale proceeds will immediately invalidate the exchange.
  • Improper Property Identification: Failing to follow one of the three identification rules (Three-Property, 200%, or 95%) can disqualify potential replacement properties.
  • “Trading Down”: Acquiring a replacement property of lesser value will result in taxable boot.
  • Failing to Account for Debt: Not replacing the debt from the old property with equal or greater debt on the new one can create taxable mortgage boot.
  • Using a Disqualified Intermediary: Choosing a QI who is not independent according to IRS rules can void the transaction.

How Legal Counsel Assists in a 1031 Exchange

While a Qualified Intermediary is essential for holding the funds, an experienced real estate attorney plays a different but equally valuable role. Legal counsel can protect your interests by:

  • Reviewing all contracts to ensure they contain the necessary 1031 exchange cooperation clauses.
  • Advising on title issues, survey matters, and zoning regulations for both the relinquished and replacement properties.
  • Coordinating with the QI, the lender, and the other party’s attorney to ensure a smooth transaction.
  • Helping you navigate complex issues like boot, financing structures, and closing procedures.
  • Ensuring that all legal and procedural requirements under South Carolina law are met.

A real estate attorney acts as your advocate, focused on protecting your legal and financial interests throughout the entire process.

Navigating Your Greenville Investment with Confidence

A 1031 exchange is a powerful provision for Greenville real estate investors looking to grow their portfolios and defer significant tax liabilities. However, the process is laden with technical requirements and strict deadlines that demand careful management. A mistake at any stage can lead to the full recognition of capital gains, defeating the purpose of the exchange. At the DeBruin Law Firm, our team is dedicated to providing comprehensive legal support for real estate investors, helping them navigate complex transactions and safeguard their financial interests.

To discuss your specific situation and learn how we can assist, contact us at (864) 982-5930 or send a message online to schedule a consultation.

Protecting Your Greenville Rental Properties Through Your Estate Plan

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For many real estate investors in Greenville, South Carolina, building a portfolio of rental properties is the result of years of hard work, careful financial planning, and savvy market navigation. Each property represents a significant investment and a source of income. Yet, the very success of this enterprise brings with it a complex set of risks that go far beyond fluctuating market values or difficult tenants. The most pressing challenge is often one that is overlooked until it is too late: how to protect these assets from liability and ensure they pass seamlessly to the next generation without being dismantled by legal complications.

What Are the Primary Risks to Your Rental Property Portfolio?

Before exploring solutions, it is important to identify the specific threats your real estate investments face. For landlords in South Carolina, these risks are both external and internal, arising during your lifetime and after your passing.

  • Personal and Business Liability: A tenant or a visitor could slip and fall on one of your properties, leading to a significant lawsuit. Without a proper legal structure, a judgment from a lawsuit related to one property could potentially put your other rental properties, your personal residence, savings, and other assets at risk.
  • The Probate Process: If you own rental properties in your own name, they are considered part of your personal estate. Upon your death, these properties will have to go through the probate court process in Greenville County. Probate is a public, often time-consuming, and expensive legal procedure where a court oversees the settling of your debts and the distribution of your assets. This process can delay your heirs’ access to the properties and their income for months or even years.
  • Creditor Claims: Your properties can be vulnerable to claims from your personal creditors. Similarly, if a lawsuit or debt arises from one property, it could impact others if they are not properly insulated from each other.
  • Heir and Family Disputes: When rental properties are left to multiple heirs without clear instructions, conflict often follows. Beneficiaries may disagree on key decisions: Should the properties be sold or kept? Who should manage them? How should rental income be distributed? These disagreements can lead to costly legal battles that diminish the value of the inheritance.
  • Personal Incapacity: If you were to become unable to manage your own affairs due to illness or injury, who would step in to manage your properties? Without a plan, your family would have to petition the court to have a guardian or conservator appointed, a public and restrictive process that may not align with your wishes.

How Does an LLC Protect Landlords in South Carolina?

The first line of defense for a real estate investor is establishing the right business structure. For most landlords, this means creating a Limited Liability Company, or LLC. An LLC is a legal entity, separate from its owners (who are called “members”), created under state law. Placing your rental properties into an LLC is a powerful first step in shielding your personal wealth from business-related liabilities.

The primary benefit of an LLC is the liability protection it offers. It creates what is often referred to as a “corporate veil” between your business assets (the rental properties) and your personal assets (your primary home, vehicles, and personal bank accounts).

Consider this scenario: A major plumbing failure occurs at one of your rental units, causing extensive damage to a tenant’s personal belongings and leading to a lawsuit.

  • If you own the property in your personal name, the tenant could sue you directly, and a judgment could be satisfied from your personal savings, your other properties, and other assets.
  • If the property is owned by an LLC, the tenant generally sues the LLC. The lawsuit is confined to that business entity, and any potential judgment is typically limited to the assets held within that specific LLC. Your personal assets and any other properties held in separate LLCs remain protected behind the corporate veil.

This separation is the cornerstone of asset protection for any serious real estate investor.

Should I Put Each Rental Property in a Separate LLC?

As your portfolio grows, a new question emerges: should you place all your properties into one large LLC or create a separate LLC for each individual property? There are distinct advantages and disadvantages to each approach, and the right answer depends on your financial situation and tolerance for risk.

  • Using a Single LLC: Placing all your rental properties into one LLC is simpler and less expensive to set up and maintain. However, it consolidates your risk. A lawsuit related to Property A would expose the equity in Properties B, C, and D within the same LLC. While it protects your personal assets, it does not protect the properties from each other.
  • Using Multiple LLCs: Creating a separate LLC for each property offers the maximum level of liability protection. A problem at one property is completely isolated and cannot affect the others. The drawback is the increased administrative burden and cost. Each LLC requires its own formation fees, annual filings with the South Carolina Secretary of State, and separate bank accounts.

For investors with a small number of properties or lower equity, a single LLC may be sufficient. However, for those with a substantial portfolio of high-equity properties, the strategy of isolating each asset in its own LLC becomes a much more attractive and prudent approach to risk management.

Integrating Your LLCs into Your Estate Plan

Forming one or more LLCs is an excellent start, but it only solves half of the problem. An LLC provides liability protection during your lifetime, but it does not, by itself, avoid probate. Your ownership stake in an LLC is called a “membership interest,” and it is considered a personal asset. When you pass away, that membership interest, just like a stock certificate or a bank account, must go through probate unless you have integrated it into a comprehensive estate plan.

This is where the two fields of law—business formation and estate planning—intersect. The goal is to create a seamless plan where the LLC protects your properties from lawsuits, and your estate plan directs how the ownership of that protected business passes to your heirs without court intervention. The most effective tool for achieving this is a Revocable Living Trust.

What Role Does a Revocable Living Trust Play?

A Revocable Living Trust is a legal document that creates a separate entity to hold your assets. You, as the creator of the trust (the “grantor”), typically serve as the initial manager (the “trustee”) and the initial beneficiary. The key step is to transfer your assets—including the membership interests of your rental property LLCs—into the trust.

Once this is done, the LLCs are no longer owned by you personally. They are owned by your trust. This simple change in title has profound effects:

  • Complete Probate Avoidance: Because you no longer personally own the LLCs at the time of your death, they are not part of your probate estate. Upon your passing, the person you named as your “successor trustee” in the trust document immediately takes control of the trust assets, including the LLCs, without any need for court approval. The process is efficient, private, and far less expensive than probate.
  • Seamless Incapacity Planning: The trust also protects you if you become incapacitated. Your successor trustee is empowered to step in and manage the trust assets—paying bills, collecting rent, and handling repairs for the rental properties—without having to go to court.
  • Enhanced Privacy: Probate is a public record. Anyone can go to the courthouse and see a list of your assets, their approximate value, and who your beneficiaries are. A trust is a private document, and its administration is handled confidentially among your trustee and beneficiaries.
  • Greater Control and Flexibility: Within the trust document, you can leave detailed instructions for your heirs. You can specify how the properties should be managed, whether they can be sold, and how the income should be used. This allows you to maintain control over your legacy long after you are gone, helping to prevent the family disputes that often arise when instructions are unclear.

How Do I Transfer My Rental Property LLCs to a Trust?

The process of funding your trust with your LLC membership interests requires careful attention to detail to ensure the transfer is legally valid. Attempting to do this without proper guidance can result in a failed plan.

The general steps include:

  • Drafting the Trust Document: First, a comprehensive Revocable Living Trust is created that reflects your wishes for asset management and distribution.
  • Reviewing the LLC Operating Agreement: This document governs your LLC. It is important to review it to ensure there are no restrictions on the transfer of membership interests to a trust. If you are the sole member, this is straightforward; with multiple members, it may require consent.
  • Preparing an Assignment of Membership Interest: This is the legal document that formally transfers your ownership of the LLC from you as an individual to you as the trustee of your trust.
  • Executing the Assignment: You sign the assignment document, officially making the trust the new owner of the LLC.
  • Amending LLC Records: The LLC’s internal records, including its membership ledger, should be updated to show that the trust is now the member.

Each step must be executed correctly to ensure the probate avoidance and asset protection benefits are fully realized.

Advanced Considerations for Greenville Real Estate Investors

A well-drafted trust allows for sophisticated planning that addresses the unique dynamics of your family and your business.

  • Accommodating Unequal Contributions: If you have one child who has been actively involved in managing the properties and others who have not, you may not want to divide ownership equally. A trust can be structured to give the active child managerial control while ensuring the other children receive a fair financial benefit, preventing conflicts over management styles.
  • Providing for Heirs with Special Needs: You can use the trust to hold properties for the benefit of a minor child until they reach a certain age. For a beneficiary with special needs who receives government assistance, an inheritance can be left in a “Special Needs Trust” to provide financial support without disqualifying them from their vital benefits.
  • Protecting Beneficiaries from Themselves: If you are concerned about an heir’s ability to manage money or their exposure to creditors or a potential divorce, you can include “spendthrift” provisions in your trust. This protects their inheritance by restricting their ability to sell their interest or have it seized by a creditor.
  • Creating a Liquidation Plan: You may not want your children to be landlords forever. Your trust can give your successor trustee clear instructions on when and how to sell the properties, such as when they reach a certain age, if the properties become unprofitable, or upon the agreement of the beneficiaries.

Taking the Next Step to Protect Your Real Estate Legacy

Owning rental properties in the Greenville area is an effective way to build wealth, but that wealth is only secure if it is properly protected. A proactive approach that pairs the liability shield of an LLC with the probate avoidance and control of a Revocable Living Trust provides a powerful, two-part solution. This integrated strategy ensures that your properties are safeguarded from legal threats during your lifetime and that your legacy can be passed on to your loved ones privately, efficiently, and according to your specific wishes.

If you are a landlord or investor in the Greenville area seeking to secure your portfolio for the future, the DeBruin Law Firm offers experienced legal guidance in creating these comprehensive plans. We are dedicated to helping clients safeguard their hard-earned assets.

To discuss your specific circumstances, we invite you to call us at (864) 982-5930 or message us online to schedule a consultation.

AI Still Makes Things Up: Why Professionals Must Remain the Experts

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Artificial intelligence is a powerful tool, a great staring point to starting a project or an article for social media, but we must remember that it isn’t infallible.  We should still check to see if the information it provides is reliable.

A recent legal research experience reminded me that diligence and human judgment remain essential in the age of AI.

I recently used artificial intelligence to assist with legal research. I was working on a matter involving South Carolina property law and asked the AI to identify case law about the possibility of changing ownership from Tenants in Common to Joint Tenants with Rights of Survivorship, post death of the parties, if the deed, when signed, was signed with a misunderstanding as to type of ownership. The AI returned what looked like a legitimate and useful citation: Durham v. Blackard, 255 S.C. 202, 177 S.E.2d 601 (1970).

It even provided a case summary: (This portion is from my conversation with the chatbot)

I took out the parts where I ask it nicely to perform a function.  My wife likes to make fun of me for saying please and thank you to the AI.  I tell myself, politeness doesn’t cost anything, but in reality, when the AI takes over the world and comes for us, I know it’s going after the rude ones first.

“Facts: Parties sought reformation of a deed due to mutual mistake.

Holding: Reformation was allowed only upon clear and convincing evidence that the deed failed to reflect the parties’ true intent.”

Unfortunately, the case didn’t exist. There is a Durham v. Blackard, but it’s a 1993 decision involving fraudulent conveyance under the Statute of Elizabeth. It has nothing to do with mutual mistake at the time of signing the deed.

I brought up the fake case and the made-up content to the AI and it gave me another case.   Creekmore v. Redick, 246 S.C. 423, 143 S.E.2d 251 (1965). The summary it produced sounded plausible and relevant, claiming the case dealt with a mistaken property description and supported deed reformation.

But once again, I could not locate any such case in South Carolina’s reported decisions. The case was simply fabricated, citation, summary, and all. Here is the AI’s response when I once again informed it that it made up a case.

“Apologies for the earlier citation errors. Upon further review, I found that the case Creekmore v. Redick does not exist in South Carolina case law. I regret any confusion caused by these inaccuracies.”

This experience underscores a reality that many professionals are beginning to discover: AI can still make things up. It will confidently produce answers that look right, sound authoritative, and might even contain accurate legal principles, but unless you already know the area well, it can be nearly impossible to spot where the technology fabricates.

This is particularly dangerous in a field like law, where the foundation of our work is truth, precedent, and precision.

Artificial intelligence can be a useful starting point for organizing thoughts, identifying issues, or framing arguments, but be cautious about trusting it to finish the job. It is not a substitute for subject matter expertise.

As professionals, we cannot blindly accept what AI gives us. We must remain vigilant, verify sources, and apply our judgment. We are the subject matter experts, not IT.

10 Benefits of Hiring a Startup Lawyer for Your New Business

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Did you know that there are 10853 licensed attorneys in South Carolina? While some specialize in more traditional areas like criminal law, environmental law, or intellectual property, others are experts in the booming business of startup law. A startup lawyer helps advise innovative, quickly growing companies on how to maximize their business.

Hiring an attorney as you are starting a company is crucial to stay compliant with the laws, make financially prudent decisions, and gain valuable advice about risk mitigation. Read on to learn the 10 benefits of hiring a startup lawyer for your new business.

1. A Business Lawyer Will Help You Draft Airtight Contracts

Contracts are an essential part of any business. Whether they are between employer and employee, business and vendor, or customer and business, a contract provides the essential terms of what is being exchanged, for how long, and any associated costs.

New business owners often run into trouble when drafting their contracts. They may fall into the trap of using overly general definitions, unclear limitations on liability, or incorrect timelines. These mistakes are expensive and can expose an early-stage startup company to lawsuits.

Hiring a skilled business lawyer will assist you in contract drafting to ensure there are no missing parts in the agreement. They will understand what you want to communicate, and write in a way to protect your business.

2. A Startup Attorney Can Provide Expertise in Specific Types of Business

Though there are general startup attorneys, business lawyers can specialize in their niche and become experts in certain types of industries. For example, you can hire a business lawyer specializing in the medical field, hospitality, or technology. Finding a person who knows the language of your sector will allow them to dive into the needs of your business.

When interviewing potential startup lawyers, do not be afraid to ask about the types of clients they normally work with. This will give you a sense of if they have worked extensively in your industry.

3. The Startup Attorney Will Help Your Startup Company Develop a Solid Business Structure

One of the most important components of growing an early-stage startup company is setting the business up with the right corporate structure from the get-go. There are pros and cons for each business structure, and consulting with your attorney can help you identify what is best for your business goals.

Examples of structures include sole proprietorships for the sole business person, partnerships if someone else is joining the venture, and professional corporations for bigger business ventures. Your business lawyer can answer questions and help you way the benefits of each structure.

4. Preventing Lawsuits Saves Money in the Long Run

Litigation is an expense that many startup companies do not anticipate. However, the reality is that things go wrong, and efficient solutions are needed to fix them. Business lawyers often charge between $100- $400 per hour, and if a case goes to trial, these attorney’s fees can grow very quickly.

A skilled startup attorney can help you to prevent many lawsuits from even occurring. By advising you to do things like avoiding employment discrimination, addressing your cybersecurity to ensure compliance, and protecting your intellectual property products, they can save you from high expenses.

5. It Is More Cost Effective to Hire a Business Lawyer From the Beginning Than Once Problems Arise

Some business owners believe that they are immune to problems. They feel that things like structuring their business and drafting contracts can easily be done independently and that hiring a lawyer before problems arise is a waste of money.

This theory could not be further from the truth. Taking complex business tasks independently puts a business person in a ripe position to make expensive mistakes.

Imagine this- you draft a contract with a technology vendor, promising to purchase 100 laptops per month for your business. However, you made a typo and had only wanted to make a contract purchasing 10 laptops per month.

What happens next is ugly. You must breach the contract, and pay any associated damages in a settlement. Having a skilled lawyer to advise your major business actions is a great way to avoid liability.

6. A Startup Lawyer Will Help to Mitigate Risk within Business Law

One key aspect of a lawyer’s job is to mitigate risk in any aspect of the business. They will look for potential problems before they arise, to determine how to prevent them from happening.

When it comes to risk mitigation, the four types include risk acceptance, risk avoidance, risk limitation, and risk transference. The reality of being in the business world is that some risks will always be present. It is a good lawyer’s job to consult their client on how much risk they would like to take on, and how to avoid predictable trouble.

Since skilled startup attorneys have seen a lot of things go wrong in other business clients, they can help you to avoid simple mistakes. The team at De Bruin Law firm can help to foresee problems before they happen with their renowned. General Counsel Legal Service for Businesses.

7. They Will Be Your First Line of Defense if Lawsuits Arise

Though preventing lawsuits is very important, they are sometimes unavoidable within the business world. Many small startup companies have a small team, often which does not avoid a full-time lawyer. This is why hiring an outside startup attorney that you can consult on these matters is essential.

Since the startup lawyer would have been working with you for a while already, they know your goals and the structure of the business. They can advise based on what they know about your style, and not provide cookie-cutter advice that would apply to any business. Having this personal relationship is invaluable when times get tough.

8. Hiring an Outside Startup Attorney Is Cheaper Than Having an In-House Counsel

As businesses grow, they often hire In-House Counsel to work directly for the company and advice on legal matters. While this is wonderful for more developed companies, these salaries run an average of $241,325 in the United States.

Though hourly rates of startup attorneys may seem overwhelming, they are a fraction of what you would pay for someone full-time. Invest the money upfront, and it will pay dividends long-term. Finding the right startup attorney depends on business to business, but we can assure you that the right fit is out there for your budget and the expertise that your business seeks.

9. Startup Lawyers Will Help Protect Your Intellectual Property

Intellectual property is a work or invention that is the result of creativity. Whether it is a patent, trademark, or copyright, it is something that an individual has created and must be protected.

Many new startup lawyers create excellent inventions and ideas for their businesses. Without the proper intellectual property protections, those things can be stolen. Even if your business lawyer is not an intellectual property expert, they can assist.

The legal team at De Bruin Law Firm has a Trademark expert who would love to help with your business. You can protect your valued business with a company trademark, to ensure that everything is your property. This South Carolina firm is known to provide excellent service throughout the business law world.

10. They Can Advise You in Negotiations With Partnering Businesses or Vendors

Negotiations are an essential skill for succeeding in the business world. Nothing is quite as it seems, and there is always a deal to be made. Having a skilled lawyer on your side will help you to get the best deal in every situation.

Negotiations and mediations are now the preferred methods of settle disputes. A full-blown trial is becoming rarer in the legal world, as these mentioned methods are far more cost-effective. They also provide a stronger level of certainty that both sides may be satisfied with the outcome.

Now You Know Why to Hire a Startup Lawyer for Your Business

Thank you for reading this guide with us today! We hope you now understand the incredible impact that a skilled startup attorney can make on your business. Whether you need assistance with contract drafting, risk mitigation, or negotiations, a business lawyer can elevate your startup business to the next level.

Our team at De Bruin Law Firm is the legal counsel that you can trust for your business. We are three skilled attorneys, and service the Greenville, South Carolina region. Please contact us today to learn about how our firm can help your startup venture through a startup lawyer.

10 Facts About Business Law Cases

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Lawsuits are the modern way of holding other people accountable through the court system. People can sue other people who have harmed them, as well as businesses who they believe are in the wrong. But what is business law, exactly?

Business law is any legal dealing between people in relation to commercial matters. A business could sue another business for copyright infringement. There could also be a disgruntled employee seeking financial restitution.

Here are ten business law cases that demonstrate how tricky and complicated legal proceedings can get.

1. Apple vs Samsung

In 2011, Apple filed a lawsuit against Samsung for copyright infringement. According to them, Samsung had stolen the design for its smartphones and tablets from Apple. This included aspects of its hardware and software, such as the layout of its home screen.

Ultimately, the United States Supreme Court decided in Apple’s favor, granting them $539 million. Despite the lawsuit, Samsung and Apple continue to push products that are similar to one another.

2. Florida Couple vs Bank of America

Banks losing lawsuits aren’t a completely strange occurrence. However, it is unordinary for them to completely ignore the outcome of a lawsuit.

In 2009, a Florida couple was wrongfully foreclosed on by Bank of America. They responded with a lawsuit that won them $2,500 in legal expenses. However, Bank of America decided not to pay the couple despite the judgment.

The couple, with the local sheriff in tow, showed up at a local branch of the bank and started possessing items. The bank was ultimately forced to give a check to settle the debt.

3. Sony vs Itself

Although two subsidiaries owned by the same company are supposed to work together, they can find themselves at odds.

In 2001, the Recording Industry Association of America decided to sue Launch.com. According to them, Launch.com wasn’t seeking proper licensing for its Internet radio service. Sony belonged to the trade association and was a part-owner of the Launch website at the time.

To an extent, this was one of the rare situations where a company was suing itself.

4. Oprah vs Farmers

Sometimes individuals find themselves on the wrong end of an entire industry. In 1996, Oprah Winfrey did a segment on the mad cow disease and how it was affecting the U.S. beef industry. By the end, she declared she would never eat another burger again.

Members of the Texas cattle industry filed a lawsuit together against Winfrey, alleging more than $10 million in damages due to what they claimed were libelous statements. Ultimately, the jury voted in Winfrey’s favor.

5. The North Face vs The South Butt

Business law cases are often fought over trademarks. One Missouri teenager found himself at odds with The North Face Apparel Corp. over his own parody company called The South Butt.

The name, logo, and tagline were all parodies of The North Face’s original ones. However, the teenager’s company capitalized on its association with the larger company. The lawsuit resulted in a settlement that prohibited The South Butt from continuing its business.

6. Carl Sagan vs Apple

Famous astronomer Carl Sagan once sued Apple over his name used as a codename in the 90s. Originally, he requested they change the name via a letter. They refused and changed it to BHA, which was short for Butt-Head Astronomer.

Sagan sued for libel, but he lost his case. They would eventually come to an out-of-court agreement with Apple making a statement of apology.

7. Hlatky vs Steward Health Care System, Inc.

Contracts in business law are one of the most important aspects. They decide whether or not there’s even a case to be fought.

In the case of Hlatky v. Steward Health Care System, the Supreme Judicial Court found the Defendant had committed a breach of contract. Hlatky was a cancer researcher whose research lab was driven into bankruptcy when support was withdrawn by Steward.

The following lawsuit ended with the plaintiff winning $10.2 million for damages to an asset she didn’t own.

8. Marriott Data Breach

In late 2018, the Mariott hotel chain was breached. Their reservation systems had hundreds of millions of customer records that were now taken by attackers.

A class action was taken against them alleging several violations. The plaintiff was one of its members that was made vulnerable by the breach. Mariott won the lawsuit due to the fact that no sensitive information was compromised.

9. Facebook Facial Recognition

Privacy and its related permission are some of the most important contracts in business law. If a user doesn’t approve of sharing information, then it can’t be used.

Facebook’s photo-tagging feature was innocuous at first. However, it used facial recognition technology to associate people in photos with their accounts.

The lawsuit against Facebook alleged that these scans were created without user consent and violated Illinois law. Its final settlement was $650 million and one of the largest settlements for a privacy violation.

10. Scarlett Johansson vs Disney+

One example of an online business law case is that of Scarlett Johansson against the online streaming platform, Disney+.

Since movie theaters were closed during the pandemic, Disney decided to upload many of its movies directly to its streaming platforms. Although Black Widow was one of the first films to screen in theaters once more, it was also added to the streaming platform for subscribers.

According to Johansson, that decision violated her contract. It could also potentially cost her more than $50 million.

The two parties reached a settlement in September 2021. The actual terms of the settlement were not made public.

Managing Business Law Cases

As much as you’d like to avoid business law cases, they’re a natural part of owning a business. Unfortunately, any public individual or business is at risk of a lawsuit for one reason or another. You may also find that you need to rely on the legal system to hold another company accountable.

When that happens, reach out to De Bruin Law Firm for help. Our office is located in Greenville, South Carolina, and we specialize in business law, criminal defense, estate planning, and real estate.

Contact us today to schedule a consultation.

How to Create Rock Solid Business Contracts

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Business is done with contracts. Getting yours right is critical. Getting them wrong can be costly.

No matter what kind of business you run, well-written contracts protect your interests. Good contracts keep things running smoothly.

Would your contracts withstand court scrutiny?

Understanding how to write contracts that work can help you ensure yours will hold up if disputed. So, here are the basic dos and don’ts of writing solid business contracts.

Writing Solid Business Contracts

You, your clients, and your vendors should be able to rely on the efficacy of your business agreements. To ensure your business contracts are reliable and legally enforceable, here are some basic “do’s.”

Keep It Simple, But Specific

We’ve all seen contracts loaded with complex legal terminology. All the “heretofores” and “thereunders” make it difficult, if not impossible, for a layperson to understand.

Using flowery language in an effort to sound smarter can backfire. If your clients can’t understand what the contract says, they may choose not to sign and to do business with your competition instead.

Be as specific as possible to avoid misunderstandings. Only use legalese if it serves to make the contract terms more precise or clear.

A Handshake Doesn’t Protect You

Under South Carolina law, certain contracts must be in writing. Agreements involving wills or trusts and contracts in the realm of real estate law must be written to be enforcible.

Although some simple contracts can be oral agreements, it’s difficult to enforce them should there be a dispute. Well-written contracts help prevent misunderstandings.

Be As Specific As Possible

Vague business contracts serve no one. The more specific your contracts are, the less room you leave for misunderstanding. Include as much detail as possible. Use precise terms.

Specify all payment terms and delivery or service dates and deadlines in detail. State clearly who is paying what to whom, and when they must make payment.

Likewise, describe in detail the service, product, or item that is being purchased. Include when and how the service will be performed, or the customer will receive their purchase.

Don’t leave anything open for interpretation or misinterpretation.

Correctly Identify All Parties

Like all legal agreements, business contracts must be clear about who is obligated to provide the goods or services to whom. It must also be clear who will pay for those goods or services.

So, you must use the correct legal names of the parties to the contract. If you are doing business with another business, use the full name of that business (including any Inc. or LLC) in the contract.

Don’t use the names of the people signing the contract. They aren’t responsible for fulfilling the obligation. Their company is.

Capacity and Duress

A legal contract requires that anyone signing it must have the mental capacity to do so. That means they must be free from mental incapacity and sober. Otherwise, the agreement isn’t enforceable.

Likewise, everyone signing a contract must be doing so of their own free will. Financial or emotional coercion nullifies the deal.

Contract Termination and Dispute Resolution

Sometimes the terms of a contract can’t be met by one party. Sometimes the deal can’t proceed because of, or the deal is halted by an outside influence. So, it makes sense to include circumstances under which the contract can be terminated.

Include a section that states specifically what you and the other party can and will do if you disagree about the contract’s terms. Will both parties agree to go to mediation or arbitration before taking the dispute to court? Write it into the contract.

Say Which State’s Laws Govern the Contract

If you’re doing business in South Carolina, your contract will be governed by South Carolina’s laws. Specify that in your business contracts. This is especially important if you do business with clients or vendors in other states or countries.

You may also choose to specify where you will mediate, arbitrate, or bring a legal action under the contract should a dispute arise.

Contract Mistakes to Avoid

Just as there are certain details that you should do for every contract, there are other things you should never do. These not only weaken business contracts; they can also cost you.

Using Ready-Made Contract Templates

There’s no denying document templates have made many business functions easier. But when it comes to business contracts, ready-made templates are risky.

Your business is as individual as you are. You have your own business practices, methods, and goals. The one-size-fits-all contract template doesn’t account for all the details that make your business unique. Consequently, it may not protect your interests if a dispute arises.

Promising the Moon

It should go without saying that you should never promise more than you can deliver. You also shouldn’t agree to pay more than you can realistically afford.

You should be certain you can honor the terms of your business contracts before signing them. That includes clearly defining the scope of all obligations and any applicable deadlines. Then stick to the contract terms.

Negotiating with Subordinates

If the person you are negotiating with doesn’t have the authority to sign the agreement, you’re speaking with the wrong person. Don’t waste your time negotiating with a subordinate.

You should insist on negotiating with the person who has the authority to sign the contract. Often that is the owner, president, or chief executive officer.

Business contracts signed on behalf of a corporation by someone who doesn’t have enough authority to make the agreement can’t be enforced. Protect your interests by negotiating with the right person.

Skipping the Lawyer to Save Money

It may be tempting to try to write your business contracts yourself. But that could be a costly mistake. To adequately prepare business contracts, you must fully understand the legal and regulatory environment of your industry and location.

Remember, lawyers must know the precise meaning of the sometimes obtuse legal terms that pepper many business contracts. If you don’t understand the legalese, an attorney specializing in business law can explain it to you and ensure that the contract works for you.

Safeguarding Your Business Interests

When it comes to protecting your business interests, you can never be too careful. No matter how thoroughly you’ve reviewed your business contracts, it’s a good idea to have your lawyer review them.

Our contract specialists are here to help ensure your agreements work for your business. We can help with business contracts, trademarks, mergers and acquisitions, business formation, real estate law, and other business law issues.

Contact our business law experts today. Let us help with your contracts so you can focus on your business.

7 Factors to Consider When Choosing Business Lawyers

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What do you love about owning your own business? Most likely, you enjoy selling something or providing a service that other people need or enjoy. But, who do you turn to when you need help with your business, and you don’t know the answer?

Business lawyers are there for you and other business owners when it comes to business legal matters. They assist with starting a business, writing contracts, contract disputes, and many other areas. If you encounter an issue with your business, you should contact a business sooner than later.

Choosing business lawyers can seem daunting, but we are here to help. Here are some things to consider when considering options for lawyers.

1. Integrity

When you select a lawyer, they represent you and your business. This means that you’ll want that person to have upstanding character. Lawyers need to be tough in some circumstances, along with stalwart.

What you don’t want is someone who will go to any lengths to resolve an issue in your favor. Once they have moved on, you are left to pick up the pieces of yours and your business’ shattered reputations.

A good way to root out the bad ones is to look at lawyer references and reviews. Many different sites offer reviews for lawyers and law firms. You should also cross-check those reviews with at least two other websites to get a complete picture of a lawyer.

If a lawyer is accused of shady behavior multiple times, they will do it again.

2. Consider Legal Experience When Choosing Business Lawyers

Integrity aside, the best way to choose a competent lawyer is to take their legal experience into account. You’ll want to verify that the lawyer you want to hire has experience with the issue you have. Talk to your lawyer and ask them questions to get a thorough understanding of their experience.

You should also see if they have other areas of expertise related to business law. It can be good to have some to call who is already familiar with your business if other problems arise.

Look at the track record of their cases and see how successful they are at resolving issues for their clients in their favor. This can help give you confidence in your lawyer’s ability. You should also consider the number of cases your lawyer has handled.

A lawyer who has been practicing for years will have more wisdom than a lawyer with less time on the job. This shouldn’t be the most important thing you consider, however. Lawyers who have a high success rate with their cases have a lot of wisdom to offer.

3. Experience as a Business Owner

Business lawyers have experience dealing with the legal aspects of business, but many do not have experience as business owners. They can understand, but it can be more difficult without firsthand experience.

When you are dealing with a large law firm, most of the lawyers at the firm will work for the partners. At a small law firm, however, the lawyer that handles your case might be a partner. This means that they will have the legal experience you need and share your business experience.

Business experience isn’t necessary for business lawyers to be effective. However, that experience can help them better understand the issues that you have.

4. Effective Communicator

Aside from knowledge of the law, one of the most important skills a good lawyer should possess is good communication skills. A lawyer’s job is to communicate with opposing counsel, the judges that preside over their cases, and juries. Your lawyer also needs to be good at explaining things to you.

Legal matters are difficult to understand, and your lawyer should communicate this in a way you understand. A good attorney should anticipate your questions and notify you about developments without you asking.

Not only does an attorney need to know how to communicate, but also the best communication method. Some matters may only warrant an email, but others may dictate an in-person meeting. Your attorney needs to read the situation and respond as appropriate.

5. Billing Structure

Legal services can cost a lot, especially if it takes your attorney a lot of time to address your issue. Hourly billing will cost you more if your problem only requires a few hours of a lawyer’s time.

Talk to your lawyer about the fee structures they have available. Find a lawyer with a fee structure that fits your needs at the time. You should also inquire if the fee structure can be adjusted if your needs change in the future.

6. Get a Local Attorney

Business laws will vary between states. Some districts in a state may have unique business laws that are different from others across the state. This is why you need someone familiar with the business laws in your area.

It isn’t impossible for lawyers not from your area to help you. However, they will need to familiarize themselves with local business laws. Much of their time will be spent trying to understand local regulations instead of playing an active role in assisting you.

7. Relatability and Transparency

An important element of a successful attorney/client relationship is the attorney’s ability to be relatable and transparent. As a client, you need to be able to get along with your attorney. Good rapport is important between an attorney and their client, especially when difficult subjects arise.

A good relationship will make it much easier to discuss these matters.

Your attorney should also communicate with you when the need arises to ensure you stay on top of matters concerning your business. The more comfortable the two of you are communicating with each other, you’ll both be able to tackle issues better when they come up.

Your Greenville Attorneys

Your care a great deal for your business, and when choosing business lawyers, we know you’re looking for someone who will do the same.

A good attorney should be open, reliable, honest, and an effective communicator. You will also need someone with plenty of experience; if they are a partner at their firm, they can also relate to you as a business owner. Find a business attorney in your district who is familiar with local business laws.

If you are in the Greenville area, De Bruin Law Firm has attorneys who can help with the legal matters of your business. We also have attorneys who specialize in real estate law, criminal defense, and estate planning. If you need legal help, schedule a consultation so we can assist you.

How Long Does It Take to Start a Business in South Carolina?

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Around 20% of businesses fail within the first year of opening.

But that’s why businesses have to make sure everything is planned from the outset. They have to make sure that they have the resources that can help with a slow business or if things don’t sell right away.

So, how long does it take to start a business in South Carolina that has a high chance of success? And what are the advantages of starting a business?

Here’s a look at the timeline it takes to create a business and the advantages of having a business.

How Long Does It Take to Start a Business?

Before starting a business, you need a business plan. You something that is going to outline your mission statement, your unique value proposition, and your target audience.

You have to create a plan around what your business is going to do. You have to figure out how it’s going to help people.

Planning is just the first step. And part of planning is figuring out what building materials you may need to construct your business.

There are also different levels of starting a business. You not only have to consider the legal aspects of what you need to start a business, but you also have to think about your marketing strategy and what makes your business unique.

The Legal Aspect

When it comes to the legal aspect, you may need an LLC, partnership, or some other form of business legality that legitimizes and projects your business.

In South Carolina, you will have to see how long it takes to form an LLC and what other requirements are needed depending on the county you live in.

The Small Things

The small things are getting everything you need to make your business successful. After the legal aspect, you will need to invest in marketing strategies.

You will need to invest in an online presence that can help attract more customers to your business, especially if you have a brick-and-mortar business.

Creating a marketing strategy can help you connect with your target market. It can help a business get started faster because they are driving in more customers faster.

Without a marketing strategy, people in South Carolina may not know your business has opened. They may know to shop at your business.

Financing

The final part that can affect your business timeline is financing. You want to know about your financing that is going to subsidize your business.

You may have to wait on a business loan or build savings to create your business. You may need to wait to open your business so you have the funds to pay for the legal and marketing aspects.

You also have to consider having an emergency business funding plan. This is in case there’s a pandemic or something unplanned happens to the business that you have to be financially prepared for.

What Are the Benefits of Starting a Business?

However, when you do start a business, even if it takes a year or a couple of years to get off the ground, there can be a lot of benefits to starting a business.

One of the best benefits is that you’re your own boss. You don’t have to be accountable to anyone else except yourself. But that also puts pressure on you to succeed.

You have to figure out what it takes to build a business in South Carolina and what can make you the most successful. Here are some specific benefits to consider when you do start a business in South Carolina.

Building Revenue

One of the best benefits of building a business in South Carolina is your building revenue.

You’re building a sustainable income with your own business. If you have everything planned and overhead accounted for, you can build a profitable business.

More importantly, you’re also building something sustainable for years to come. With revenue, you can invest in the future of your business.

But revenue also comes with building lifelong customers. You’re building customers that are going to continue to shop at your business for years to come.

If you invest in your business in South Carolina and have a solid marketing strategy, you can have consistent revenue because you have lifelong customers.

You’re Building Something for the Future

Another benefit to consider with building a business in South Carolina is that you’re building something for the future.

What this means is that you’re building something for the community of South Carolina. You’re building something for people, helping them solve a problem.

This helps you build a community of followers, of people who want to support your business.

In addition, the more you invest in your business, the more you’re investing in the future of what you’re doing in South Carolina. You’re looking to continue helping people in a particular area of South Carolina overcome a problem.

If you want to avoid risk in your business as you’re building for the future, you should consider hiring a business formation lawyer.

Now You’re Ready to Start a Business

If you’re wondering, “how long does it take to start a business in South Carolina?” The answer is it all depends. It depends on your business and what legality you’re going to pursue to protect your business.

It also depends on your marketing strategy and how long it takes to build your business from the ground up. You don’t want to rush the process and have it be costly for your business.

If you have questions about how to make your business more legal proof in South Carolina, you can contact us here for consultation.

Everything You Need to Know About Business Law

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Business law is a set of essential rules and regulations that need to be followed by every company. The concept of this is broad and needs a lot of insight to understand why it is so important for running a business.

Every business owner should educate themselves with these rules to be aware of their legal rights. This is significant because you may need to deal with a court settlement, legal action, and other matters that affect your organization.

Here is all you need to know about business law, so keep reading below.

The Basics of Business Law

Business law affects the operations of your firm. This can involve hiring or recruiting employees, production and manufacturing goods and services, sales practices, and any contracts you sign with suppliers or other parties.

Business law oversees every aspect of your business. This is to protect you if you are a business owner starting a new business, buying an existing one, or managing and selling one.

If you are selling goods or services, all your operations will be scrutinized under business law. Whether you are selling CBD edibles online or warehouse equipment, everything should adhere to state and federal rules. Any products you sell without legal permission can be punishable by law.

Commencing a Business

There are tons of rules you need to go through if you are commencing a new business. These primarily oversee tax obligations, financial regulations, and employment laws. Your company needs to comply follow them because they are your legal responsibilities.

Business law begins from the point you become an entrepreneur. The first stage as a business owner is picking the structure of your company. Avoid informal or formal partnerships because you may find yourself in hot water if your partners get caught up in lawsuits.

It is best to choose between forming a corporation or a Limited Liability Company (LLC). A corporation is a separate entity from its owners to provide the highest personal protection from liabilities. If the company goes under, your personal assets like homes and cars cannot be seized.

A Limited Liability Company also protects you if the company declares bankruptcy. Your own assets will not be at risk. Then you need to register your business, apply for a federal tax ID number, and obtain business permits and licenses to legally commence operations.

The Main Parts of Business Law

Think of business law as an umbrella that is shading tons of other laws from the rain. Some of the main ones underneath this umbrella are commercial law, corporate law, antitrust law, consumer protection law, intellectual property law, labor law, and contract law.

Commercial Law

Commercial law governs how businesses enter deals and contracts with each other. How you execute contracts and take care of problems that arise during the process come under commercial law.

Corporate Law

Corporate law deals with general matters, especially regarding the structure of your business. It tackles the incorporation of companies, directors, shareholders’ rights, board meetings, secretarial problems, and much more.

Antitrust Law

Antitrust law stops you from engaging in poor conduct that ruins the competitive nature of business. It prevents firms with powerful positions from abusing their market power. This ensures a fair marketplace for producers and consumers by punishing unethical practices.

Consumer Protection Law

This law protects your customers so they can buy goods and services safely. These rights ensure that businesses do not engage in fraud or mislead customers unfairly. The main entities that promote consumer protection are the Federal Trade Commission and Better Business Bureaus.

Intellectual Property Law

This protects your patents, trademarks, and copyright, and trade secrets so you can benefit from your designs and inventions. If someone uses your brand name or products without permission, you can take them to court.

Labor Law

Every company needs to take labor laws seriously. These protect all your employees to ensure that they are always looked after. You have a duty to provide the safest and fair employment conditions to avoid getting hit by legal action from a disgruntled employee.

Contract Law

Contract law enforces formal agreements. This way, transactions can occur smoothly without misunderstandings. If someone breaches any contracts, you can take the problem to court.

Ways to Avoid Litigations

Even if you do not have an office or storefront, business laws will still apply to you. These consist of internet compliance laws that can be enforced if you engage in improper business operations over the internet.

Company websites should also adhere to the Americans with Disabilities Act (ADA). This states that public spaces, even websites, and other soft programs need to be accessible by people with disabilities.

If you have been hit with a complaint about not fulfilling ADA rules, consider hiring a lawyer today.

Always have insurance to cover your business. These should include coverage for disputes and settlements if you do not want to deal with the court process.

Finally, as a business owner, avoid getting involved in types of boards, memberships, or associations that can lead to a conflict of interest with your company.

Have Everything in Writing

Having all your agreements in writing is a surefire way of legally enforcing them. Whether you are dealing with a client, employee, or supplier, always write everything down and get all parties to sign this document.

Too many problems occur when something is not done in writing. Then a court case can turn into a “he said, she said” type situation, which never ends well.

In all your contracts, state the terms and conditions clearly. This should include the performance between all parties involved, required communications, dispute solutions, and any damages that people will be liable for if they breach the contract.

This is the most basic type of written contract. There are more complicated ones, such as purchase agreements, independent contract agreements, franchise agreements, and so much more.

You should always hire an attorney to review all of these for you to protect your business. Do not forget to read every agreement before signing anything.

Choose to Work With a Business Law Attorney

Business law involves many rules and regulations that can be hard to follow, especially if you are a new business owner. Contact us today, and we can help navigate the complicated process, so you can focus on running your business smoothly.

9 Business Boosting Reasons to Hire a Business Formation Lawyer

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If you’re on your way to starting your own business, you should consider hiring a business formation lawyer. Although it’s possible to do it yourself, having competent legal advice is never a bad idea.

A good business lawyer will help you position yourself and your company so you can avoid risks and protect your assets. Because the law is complicated and not always obvious, it’s easy for laypeople to miss details. This can lead to negative consequences later on.

Here is an overview of what business lawyers do, and how they can help you establish your new company.

What Does a Business Formation Lawyer Do?

A business formation lawyer specializes in setting up your company with the proper legal identity and a foundation for success. They will know all about LLCs, incorporation, intellectual property, taxes, and more.

You can rely on a business lawyer to give you sound advice about what you need to do to comply with local, state, and federal regulations. Many regulations are designed for large corporations, but there are still enough that apply to small businesses for you to worry about them. Because there are so many, you may or may not have heard of all of them!

So, it’s better not to guess your way through the process of setting up your business. Having expert advice will help you avoid getting into trouble because you didn’t know about some odd requirement you’re expected to fulfill.

A business formation lawyer will also have established connections in the business community, so they’re a great source of referrals. You may be able to find marketing partners, financing, and other resources through this important networking relationship.

Why You Need a Business Formation Lawyer

Hiring a business formation lawyer can protect you in many ways. Here is a quick list of a few of them.

1. Protect Your Intellectual Property

When you set up your small business, you’ll have a company logo and advertising slogan that should be copyrighted and trademarked. If you’re selling patented products or need to file for patents, you should do this right away.

It’s also important to do a name search and website domain check to be sure your business name is unique and doesn’t overlap with someone else’s.

2. Deal With Tax Issues

Taxes can be very complicated! In addition to having a dedicated accountant or bookkeeper, you should have a business lawyer. They can advise you on what taxes you’ll need to file, how, and when. They should be able to help you save money while also staying compliant with all the requirements.

3. Get the Licenses You Need

Most states and municipalities require small businesses to have a license, but in some cases, you may be exempt. The key is to know what the standard is for your particular industry. A business lawyer can file for your licenses and help them stay current.

4. Pick the Right Type of Business for You

Choosing a sole proprietorship, LLC, or corporation can be tricky. It all depends on what you’re doing or selling in the business and the kind of protection you want to have.

There are also several types of corporations, with different tax requirements that will affect your take-home pay. To get the best outcome, it’s helpful to discuss the various business entities with a business lawyer who’s familiar with what’s normal in your industry.

5. Set Up Your Contracts the Right Way

Small businesses almost always use contracts for all transactions with their clients and business partners. You’ll want to be sure that your contracts don’t include any loopholes that can be used to take advantage of you.

Your business will need service contracts, disclaimers, and privacy and confidentiality agreements, among other things.

6. Protect Yourself and the Business From Liability

If you have a conflict with another company or a customer, you’ll need to hire a business dispute lawyer. Fortunately, setting up your contracts properly in the beginning will help you avoid eventual problems.

Any relationship you enter into, whether it’s with a customer, partner, or employee, should be totally legal and clear. This lessens the chance that you will be sued or taken advantage of if disagreements develop.

7. Establish the Right Employee Policies

Employee law is another area that requires expert advice. It’s a highly regulated area and you need to be sure your policies comply with all standards of fair treatment.

Having good employee policies will help you survive in the event that you have to handle tricky employee issues. If you’re doing things the right way, you’ll have little to worry about.

8. Close, Sell, or Dissolve Your Business

If you get to the point where you’re ready to sell or close your business, a business lawyer can help you manage all the steps. You’ll want to protect your assets and make sure you don’t leave yourself wide open to lawsuits or losses later on. A business formation lawyer can help you handle the real estate and property issues, taxes, and asset distributions involved in these types of cases.

9. Help You Handle Partnerships

Partnerships are another tricky legal area, since people can develop disagreements, want to move on, or even pass away unexpectedly. Planning ahead for anything will help you and the business survive whatever happens.

Finding a Business Formation Lawyer

There’s no doubt that working with an experienced business lawyer has many benefits. So how do you find one?

You could do an online search for “the best business lawyer near me”, or you could choose a firm with clear experience. In addition to being lawyers, we’re also small business owners, so we understand how it is to get started.

We know how to advise business owners in multiple industries, including retail, freelancing, tech, real estate, and more. To schedule a consultation about your business start-up needs, contact us today. We look forward to speaking with you!

The De Bruin Law firm offers a wide range of legal services to clients in Greenville, SC and the surrounding upstate. Our experienced attorneys can help you with legal matters in the areas of business law, criminal law, estate planning, and real estate law.

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