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Legal Nuggets For Businesses
By Gerard Simings
Mention legal regulations to a businessperson and you will probably see their eyes glaze over. One can hardly blame them given the complexities of the subject. That being said, here are a few legal nuggets you should know.

1. Avoid Oral Contracts – In most situations, oral promises to do things are unenforceable, so avoid them. When it comes to contracts, the only thing important is what is in writing.

2. Operating Agreement vs Bylaws – There are no bylaws for a limited liability company as found in a corporation. The Operating Agreement serves the function of the bylaws.

3. Written Agreement Jurisdiction – When negotiating a contract, make sure to look at the jurisdiction clause. You want it to be in your town or city. Otherwise, you may have to travel across the country to defend yourself in a lawsuit.

4. Copyright Office Information – All copyrights must be filed with the Copyright Office. It is a department of the Library of

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Congress.

5. Enthusiastic Legal Representation – Your attorney has a duty to enthusiastically represent you, but not make final decisions on your behalf. He or she will make recommendations, but the final decision is yours.

6. Common Law Copyright – When you create an artistic work such as a book or music, you automatically are granted copyright. If some infringes on your copyright, however, you must have registered it with the Copyright Office to get damages.

7. Avoid General Partnerships – Never form a general partnership unless you have to. This business form leaves all partners open to joint and several liability. This means everyone is entirely responsible for the debts of the business.

8. Corporate Tax Designations – Once you have incorporated a business, you must determine the tax status of the business. If you do nothing, it is automatically taxed as a C-corporation. Alternatively, you can file for a S designation.

9. LLC Tax Designation – Most people know LLCs are great because they can be taxed like a partnership. If you wish, however, you can have them taxed as a corporation.

10. Email Privacy Issues – If you send messages by email, it is important to remember they are not private. Whether you have a business dispute or personal one, a court can order you to produce them.

As with all legal information, keep in mind the above may or may not apply to your specific situation. Much of the law is factually oriented, meaning it applies in different ways to different situations.

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a person who looks after the broader financial well-being of a business, including the preparation of financial plans, budgets and management accounts and may include staff welfare.