Business Law Archives - Page 2 of 2

What types of cases do you handle under real estate law?

October 31, 2019/in Business Law, Real Estate

Our Firm handles traditional purchases of real estate, including both residential and commercial properties. We also handle refinancing of loans and mortgages, home equity lines of credit, and mobile home sales and de-titles. Additionally, we handle quitclaim deeds and property transfer. We handle commercial lease agreements, commercial purchases, and commercial sales and refinances. We also do real estate development, and that could be anything from sub-divisions to multifamily homes or to a corporate real estate development. The only thing we don’t handle in real estate law is real estate or residential litigation. We don’t handle litigation between homeowners, neighbors, landlords and tenants, etc.

Do I need an attorney when purchasing a single family home?

The real estate attorney handles the title insurance of the closing. In South Carolina, title insurance is a legal requirement, and you do need a lawyer to handle the closing, escrow servicing, and titling of your property.

Why should I hire an attorney if I’m just purchasing or selling a property?

In South Carolina, it’s required that an attorney handle and supervise many of the critical elements of a real estate closing. These elements include title searches and abstracts, title review and certification, and the closing itself, including preparation and analysis of closing documents and escrowing the funds. All money passes through the attorney’s escrow account and is distributed according to the documentation that is presented.

Should I use the standard listing agreement by realtors to buy or sell property or should I use a custom agreement made by my attorney?

For residential properties, most states including South Carolina have a standard realtor’s contract that everyone real estate agents and attorneys are familiar with. We use the standard form as it is convenient for all parties involved, but also review and draft real estate agreements specific to the individual transaction.

What is involved in the closing of a real estate property?

Often, when people are buying a property for the first time, they don’t understand the amount of paperwork and tasks associated with a closing. The first thing that needs to be done is a contract between the buyer and seller. There is an earnest money deposit that usually goes along with the signing of that contract. Included in the contract is a list of deadlines and dates for certain things to be done. It is very important to make sure that all those dates are noted when the contract is signed.

Next, there is the due diligence and the inspection period. This is vital, because in most contracts for real estate, specifically in residential real estate, there are out clauses, or the things that the buyer, if things are found, can get out of the contract, or the contract will be cancelled. There will be inspections, both home inspections and termite inspections, with a financing statement stating that if the buyer can’t obtain funding to buy the house, either they negotiate the contract again or the contract is voided. At that time, a title search is done to make sure that the title is good and marketable.

In addition, a survey of the property is done, and then the attorneys review both the survey and title to certify that the title is good and marketable. Also, the attorney needs to receive payoff requests for all liens.

Then, the lender will give a title commitment letter and will coordinate the closing. From here, we must review all the lender documents and the settlement statements and prepare for the closing.

During closing, the attorney will explain every document that is involved and all parties will sign the closing documents. The attorney will do the transferring of the deed and transfer funds through the escrow account to the lenders, sellers, agents, mortgage companies, and taxing authorities and insurance companies. The attorney will give the title insurance commitment to the buyers and the bank, and then record the mortgage deed through the clerk at the courthouse.

For more information on Real Estate Cases In South Carolina, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 982-5930 today.

Does every business need an attorney?

October 31, 2019/in Business Law

Depending on the size of your business, you may not need an attorney as in-house counsel or on your staff and payroll. However, it is always a good idea to have a strong relationship with an attorney so you feel comfortable picking up the phone to ask questions. Whether those questions happen once a week or every six months, your trusted attorney needs to be someone that is competent and regularly available to handle issues that arise in your business.

Does your firm work on a retainer with client or on as needed basis?

For smaller businesses, if it’s a work as needed basis, we can give you pretty good estimate of what that work’s going to entail. If the work determines that there needs to be a retainer, we’ll let you know well in advance for that also.

The larger businesses are the ones that typically need an attorney on retainer on a month by month basis. For larger businesses that have ongoing daily functions that require the use of an attorney, we have found it’s in their best interest financially to hire us rather than hire their own in-house counsel. We can act as general counsel outside of their payroll in the day-to-day things they need.

What are the disadvantages of not proactively hiring a business law attorney?

The disadvantages of not proactively hiring a business attorney depends on the nature of your business. On a general scale, however, it is our job to know what might throw up red flags. The more comprehensive approach we have together as far as your business plan and your goals, the better able we’ll be to point out some of those red flags prior to them arising.

What are the resolutions or assistance that your firm can provide to potential clients?

We provide a variety of services to our business law clients, including debt collection, litigation, business restructuring, and more. We will help you through any sort of business restructuring and contract related matters, as well as represent the business. If there are significant employment issues that you need help with, we have the experience necessary to help you and guide you through these issues as well.

In addition to creating new agreements does your firm assist in reviewing and modifying existing agreements or contracts?

The De Bruin Law Firm assists with reviewing and modifying existing agreements and contracts. We can also do a document review, even if the documents have been previously executed. This often happens with new clients who have existing shareholder or operating agreements. We encourage existing document reviews for all of our clients. These reviews enable us to see where you were prior to coming to us—if there’s anything that needs to be addressed, we can resolve it before it becomes an issue.

Does your firm litigate business matters?

We typically litigate matters in which we are already actively representing the business. We are truly selective on cases we litigate. If it’s a situation in which a business or a business owner comes to us because we have represented them in the past, we will handle that on a case-by-case basis. Our clients require our attention actively, and litigation is very time-consuming. If we are unable to represent that new business in a litigation matter, we certainly will refer to another trusted litigator.

For more information on Need For Business Law Attorneys, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 982-5930 today.

Common Business Law Questions:

Choosing an Entity for Your New Business

June 21, 2017/in Business Law

Starting a new business is exciting and stressful. For many, creating a business is the achievement of a lifelong dream. However, it is no secret that many businesses fail within just a few years of opening. To avoid failure, business owners need to speak with experienced business law attorneys long before opening the doors to their new companies. At the De Bruin Law Firm, our Greenville, South Carolina business attorneys are experienced in assisting clients with all aspects of business law, from entity formation to litigation. Further, our attorneys are experienced business owners, which provides our clients with well-rounded knowledge of the numerous questions and concerns business owners may have.

Choosing a business entity

Before you choose a business location, create a logo, or begin hiring employees for your new company, you have some other steps you must take. One of the first choices you must make as a business owner is determining which business entity is best for your new company. There are several different options for your business, each with advantages and disadvantages. Each entity also has different tax liabilities and consequences and should therefore play a large role in your entity formation analysis.

Limited liability companies (LLCs)

In an LLC, the company itself is a separate legal entity from the owners of the LLC. This means that the owners’ personal assets are not available to satisfy any business debts, which is beneficial in litigation. An operating agreement governs the life of the LLC. Business owners must register with the state to create an LLC.

Partnerships

In contrast to an LLC, the partners (owners) in a partnership are personally liable for any legal claims that are filed against the business. No state filing is required to form a partnership. Partners must report business income on their tax returns. They may deduct losses on their taxes as well. It is wise to have a partnership agreement in place in the event the partners ever disagree on how the business should be run.

Sole proprietorships

In a sole proprietorship, the owner is personally liable for any lawsuits that are filed against the company. No state filing is required to create a sole proprietorship. Owners must pay personal income taxes based upon the sole proprietorship’s profits. Similarly, owners may deduct business losses from their taxes.

These are only a sampling of the numerous business entity types in existence. Based upon your individual business goals, a different business entity may be best for you. It is important to understand the different liabilities involved with each entity as well in case issues arise with your business.

Our attorneys guide new business owners throughout the life of their companies

Our business law attorneys have helped clients create various types of companies, including LLCs, partnerships, sole proprietorships, and other entities. Our attorneys have assisted these companies when disputes have arisen and when legal action has become necessary. We provide guidance with complicated tax concerns, with obtaining business licenses, and with determining a plan of action for your company. Our legal guidance does not stop once the business entity type has been selected. We help our clients get their business off the ground and running as well. For many of our clients, we remain available to address any concerns they may have for years to come.

Registering for and Filing Income Tax Withholding in South Carolina

March 7, 2017/in Business Law

South Carolina business owners must take several steps to get their businesses off the ground. They must choose a location for their business and they must obtain financing. They must choose a business entity, such as a limited liability company or a partnership, and they must register a business name. And, of course, the business must register for state and local taxes.

Withholding Tax

Withholding tax is taken out of wages. The withholding tax goes toward the total annual income tax liability. Employers that hire South Carolina employees must issue a return to the South Carolina Department of Revenue for the taxes that have been withheld.

First, the business owner should complete Form SCDOR-111, which is the Business Tax Application. After this form is completed, the business owner will be able to move forward with a number of steps, such as registering for a retail license. After completing the Business Tax Application, the business owner will also be able to register for income tax withholding. Once the application is completed, the business will receive a withholding file number. The business owner will reference the withholding file number in all correspondence and when making payments. It must also be referenced when the business owner calls the Department of Revenue.

Tax Payments

The method of payment varies depending on the amount of withholding tax the business is filing. For those whose withholding tax is more than $15,000 during a quarter, or that make more than 24 payments each year, the business must pay online. These businesses must also submit the Withholding Tax Coupon, Form WH-1601. For businesses that must pay less than $15,000 per quarter, payment may be submitted voluntarily online.

W2 forms for employees are due by January 31 following the tax year. So for tax year 2017, W2s are due by January 31, 2018. These may be submitted online.

As for filing the returns, businesses must file a withholding quarterly tax return (form WH-1605) for the first three quarters of the year. At the end of the fourth quarter, a withholding fourth quarter and annual reconciliation return, WH-1606, must be filed.

Tax Deadlines

These returns are due on April 30, July 31, October 31, and January 31. It is very important to meet these filing deadlines. If a business misses one of the withholding tax deadlines, the business may be subjected to penalties.

As of January 1, 2017, the South Carolina Withholding Tax Tables have been updated for the first time in 25 years. The withholding tax tables will also be updated every year beginning with 2017. It is very important that business owners use the new tables to ensure they are submitting the proper amounts. These tables, along with the withholding tax formula, are available at the South Carolina Department of Revenue website, www.dor.sc.gov.

How business attorneys can help with registration and filing

Navigating the websites of South Carolina’s governmental agents is not always easy. There are dozens of forms online, and it is not always clear which ones you need to use. With the assistance of a business attorney, you will ensure that you are taking the proper steps to launch your business and meet state tax requirements. Rather than risk being subjected to penalties, it is better to seek the guidance of an experienced attorney who understands applicable laws and regulations.

Let our business attorneys advise you

At the De Bruin Law Firm, our attorneys are experienced in helping businesses register for state and local taxes and filing those taxes. To schedule a free consultation with our attorneys, call 864-982-5930 or visit debruinlawfirm.com.

Benefits of an Operating Agreement

March 6, 2017/in Business Law

Operating Agreements

If you are considering starting your own business, you need to take certain steps to protect that business, as well as your own legal interests. When business owners decide to form a limited liability company, or an LLC, they often skip creating and implementing an operating agreement. However, the failure to draft and enforce an operating agreement may be a costly mistake in the future if the business runs into trouble. Without an operating agreement, the default laws of a state will govern any disputes that arise, which may lead to unpredictable results.

Many business owners choose to make their businesses an LLC because the company itself becomes a separate entity from the members (the owners). Typically, the members are shielded from liability in certain incidents involving the LLC. The members are also not usually responsible for the debts or liabilities of the LLC. Operating agreements are executed between the LLC itself and the members of the LLC. Operating agreements are legal contracts. The operating agreement describes how the LLC will be managed, as well as how profits and losses will be distributed. Essentially, the operating describes how all aspects of the LLC will be handled.

How Operating Agreements Work Within LLC’s

Although the LLC and the members are unique entities, there are occasions in which members may be liable for their actions and the protections of the LLC do not apply. Members may find themselves accountable for debts and liabilities of the LLC if they personally guarantee debts, such as business loans.

You may have heard the term “piercing the corporate veil.” A creditor may try to go after a member’s personal assets if the creditor can offer evidence that the only reason the LLC was created was to provide legal protections for the members. There are a number of ways to demonstrate this. For example, if annual meetings were never held and minutes were never recorded, the court may find the member liable. If a member maintained too much control over the LLC, if personal funds were mixed with business funds, or if the LLC was not adequately capitalized at the time of its inception, courts may determine that the members are personally liable for the debts of the LLC. Committing fraudulent actions will also usually result in liability.

To avoid these scenarios, the operating agreement must lay out the expectations of its members. The operating agreement may be as detailed as the members like. An enforceable operating agreement also shows that the LLC is legitimate.

Operating Agreements Can Resolve Disputes

In addition, operating agreements may prevent disputes from arising between the members of an LLC. Since operating agreements lay out the expectations of the members, the members are less likely to be involved in disputes because they understand what actions will not be tolerated or may result in liability. If the members are involved in a lawsuit, it often turns into a time consuming, expensive ordeal. A clear operating agreement significantly reduces the odds of such an event.

Operating agreements may also address unforeseen events. For example, what would happen if a member died? The operating agreement may include a key man life insurance clause, which provides that the LLC will purchase life insurance to cover the death of one of the members.

Contact our attorneys for guidance with your new business

At the De Bruin Law Firm, our business law attorneys possess the experience necessary to help business owners launch limited liability companies. We can help you with setting up your business and helping you arise disputes in the future.

Tag Archive for: Business Law