Online Business Attorneys

[meredith]

Any recommednations for legal counsel for IMrs?

I would like someone who specializes in NWM, IM, and marketing issues so I can make sure my biz is compliant with FTC laws.

It scares me that we may be breaking some law unknowingly. Im sure that is by design these days to raise money for the govt, but Id like to NOT if possible.

Any suggestions?

[ScottTousignant]

Great question Meredith and one I'm looking forward to hearing some answers to.

I'm going to be adding some legal and privacy pages on my site and was planning on using Auto Web Law to help me generate the page.

http://www.AutoWebLaw.com

They claim that I could have it done in 5 minutes going through their step by step process. I'm not sure if it's up to date with the FTC policies now.

[Lynn Terry]

Great topic, Meredith!

A recommendation came in from Twitter from @nathanreep:

Mike Young - the first and last word for IM legal issues:
@internetlaw4u (http://twitter.com/internetlaw4u) , http://mikeyounglaw.com/updates/

[meredith]

Thanks guys I will be looking in to both.

[meredith]

Okay - mike young has an informative blog but if you are not flush with cash he is probably not your first choice nor you, his. If you are maing well into six figures then he woudl make more sense.

I just need some basic qws. answered re: online and offline marketing re: FTC guidelines in the area of NWM as well.

Lynn - if your twitter crowd can offer anything specific to IM and Network Marketing that'd be great. If I find anything Ill post as well. Gracias.

[franknvegas]

Hi Guys! One thing you ought to consider is forming a NV. LLC, C or S Corp. to run your business. Besides the considerable tax advantages, the liability protection is unparalleled. A new legislation in NV, states that even though managers and officers were really bulletproof before, now you have to prove intent to commit fraud which is darn near impossible in a court of law. I have been an expert on this for many years and would be happy to advise anyone on the advantages gratis (franknvegas@gmail.com).

[Lynn Terry]

Hi Frank,

From what I understand, in my area at least, an LLC does not offer liability protection or tax advantages to the sole proprietor. Me, for example - I am single, no business partners, no employees. I looked over all of the options with a financial adviser and he showed me that there are no benefits for an SP to run as an LLC. Obviously a different case if you have a partner or the people who work for you can be (legally) defined as "employees". Is it different in Nevada?

[Steve S.]

An LLC is a separate entity in the eyes of the law thereby sheltering your personal assets in the event of a lawsuit, claim, or judgement.

They can go after the assets of the LLC such as business bank accounts, office equipment, computers, but not your personal assets held outside of the LLC such as your home, car, personal bank accounts, investments, etc.

Also since an LLC is a separate entity, it is easily transferrable when you want to sell it (or in case you die it can be easily transferred to heirs). A sole proprietorship is messy to transfer because the company and you are one and the same in the same in the eyes of the law. When you are gone, so is your business.

Given the cost to form an LLC (a few hundred dollars) it is totally worth it.

By the way I'm not a lawyer and this is not legal advice. With the new FTC rules I think I'll be disclaiming everything I write from now on ;-)

[Lynn Terry]

The problem is, if you ARE a sole proprietor and LLC does not protect your personal assets, even if you form an LLC as an SP. I was under the impression it would but did some research and consulted with a financial adviser that specializes in tax accounting. It turns out that your personal assets are vulnerable in that (SP) case.

I've got some good information on this - I'll put together a quick report with all the details.

[franknvegas]

Dear Lynn, I'm sorry but your financial advisor is totally misinforming you. Firstly, you have less than 200 tax deductions you can take as a SP and over 500 with an LLC or C or S corp. And from a liability standpoint, SP's are actually dangerous (I have horror stories you won't believe.). Please check this link:

http://www.nvinc.com/why_incorporate.htm. (This is a great site for research but their prices are outrageous. I do custom formation much cheaper)

Also you should pick up "Lower Your Taxes Big Time" by Sandy Botkin. It's about 13 bucks on Amazon and may be one of the best investments you'll ever make. (Sanford Botkin is a tax lawyer and CPA and actually sat on the board at the IRS that interprets the tax code). I can explain this whole thing in detail if you like. As a single Mom and business owner you should really know this stuff and I'll give you the entire skinny.

[franknvegas]

Lynn,one more thing, it doesn't matter if it's TN. or NV. or any other state as far as Federal Taxes are concerned. That's IRS stuff. However, because NV. has no personal or corporate income tax or tax on corporate shares, there can be a substantial advantage for an internet business to be domiciled in Nevada as it's not a "brick and mortar" type of business. This is in Nevada's constitution and it will almost certainly never change as it would take an amendment to the Constitution (minimum of 5 years) and NV. has a business friendly environment that's over 100 years old.

[Steve S.]

I think the confusion is stemming from the definition of "Sole Proprietor". It does not mean someone who works alone with no employees. A sole proprietor can employ hundreds of people.

"Sole Proprietor" is a business classification which loosely translated means, "I and my company are the same entity". It is a default. If you haven't formally organized your business as a partnership, LLC, C corp, or S corp, then you are automatically a sole proprietor and all your personal as well as business assets are fair targets in a lawsuit.

[Lynn Terry]

It was explained to me that if you have no partners or full time employees, that even if you form an LLC you and your business entity are still considered one and the same. I'll have to look back over my notes - and Frank, thanks for the book recommendation, will definitely pick that up as well as I continue my research.

[franknvegas]

Steve, you hit the nail on the head. Another factoid: Sole Proprietors are THE most targeted group for IRS audits. It really is the worst way of conducting business in this country (and most others too.) And, Lynn, the whole idea of forming a business entity is so you are NOT one and the same. A corp. or LLC is what I call an "artificial person." It can do anything a person can do,have a business, own property,etc. except think for itself. A manager does that for an LLC,board of directors for a corp. Partners,employees, full or part time are absolutely not mitigating factors whatsoever. I still get calls from lawyers,CFPs, CPAs, etc. that have stuff terribly wrong. But only a few of the arrogant lawyers have really been a pain. Unfortunately, some clients have paid a terrible price for getting bad advice from a licensed professional (locally, Wayne Newton came very close to losing everything, including his daughter's trusts. Now he's married to a very smart, beautiful lawyer from TN. and she handles everything now and they're living happily ever after) I will gladly help any and all forum members with this stuff, just let me know.

[Steve Gilbert]

[QUOTE]Also you should pick up "Lower Your Taxes Big Time" by Sandy Botkin.[QUOTE]

Got it today @ B & N..wicked great info, suggest you gotta' have it. And, be sure to read the part about liability insurance umbrella, which I've had for many years because it's not expensive and helps you sleep at night if you're self-employed.

Steve

[deannatroupe]

Frank, you'll definitely be hearing from me. I've been contemplating forming a corporation for my biz, but I'm not sure which format would be best. I'll be in touch.