Business Law Articles

Discover and learn the latest valuable business law articles for ideas, practical information, DIY from a network of leading business and corporate lawyers.

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Fiduciary Responsibility Definition

A fiduciary responsibility refers to an organization that must put another person’s best interest first. A fiduciary duty is the highest standard of care in law. For example, a lawyer owes a fiduciary responsibility to the clients, a doctor owes a fiduciary duty to a patient, and a trustee owes a fiduciary duty to a beneficiary.

What is profit formula and how to calculate profit formula?

A business profit is revenue minus expenses. The profit formula in accounting calculates the net gains or losses incurred by the business for a period by subtracting the total expenses from the total income: Total Income – Total Expenses - Profit

What is invoice reconciliation?

Invoice reconciliation is the process of matching bank statements to incoming and outgoing invoices. The purpose of invoice reconciliation is to confirm that the data entry is correctly matched with every invoice.

What Makes a Verbal Contract Valid

A verbal contract is valid when contractual elements are satisfied, such as evidence of an offer, acceptance of the offer, and consideration which is an exchange of value between the parties.

Marketing Transport Company

The easiest way of growing your list of clients is to schedule a meeting with businesses that do a lot of shipping and introduce your transportation company. Then, engage an internet presence to market your transportation business.

What Can You Do with a Toxic Business Partner?

A bad partnership could lead to profit loss and toxic company culture. The first way of dealing with a toxic business partner is to schedule a meeting to discuss your concerns calmly.

Disruptive Business Model

Disruptive business models are disruptive innovations that bring new business ideas or technology to existing markets. A disruptive business does not fit the profile of a standard business model. Amazon is considered as one of the world's most disruptive companies.

How to Get a Business Loan with Bad Credit

For small business owners with bad credit, the easiest place to get a business loan is with the SBA. Although not easy, entrepreneurs with bad credit can get a small business loan.

How to Get a Small Business Grant

You can get a small business grant from the Small Business Administration. Also, check your local government for small business stimulus grants.

Pros and Cons of Etsy

Etsy Pro: Your products are given a large audience, and you easily sell your merchandise. Etsy Cons: You can only sell handmade or vintage merchandise, and there are many competitors.

What is a Breach of Contract in California?

A breach of contract in California arose when a party to a contract failed to achieve a legal duty the contract created. When a party to a contract fails to fulfill the terms of a binding contract, they are liable for damages for breaching the contract.

Business Equipment Leasing Pros and Cons

One advantage of equipment leasing is that you don’t need to come up with all the cash to buy the equipment. One disadvantage of equipment leasing is higher overall costs than outright purchasing the equipment.

LLC vs DBA

The main difference between an LLC and a DBA is that an LLC is a business entity, and a DBA is a registered fictitious business name. Sole proprietors, general partnerships, and LLC can register for a DBA.

What is an LLC and how does it work

An LLC is a business entity that protects the owners with limited liability protection. An LLC also offers pass-through taxation, which means the company’s profits and losses pass through to the owner’s personal tax level.

What Is a Disregarded Entity?

A “disregarded entity” refers to an entity with one owner and not organized as an entity such as a corporation, LLC, or partnership. For federal tax purposes, the disregarded entity and the owner, who is a natural person, are not treated separate.

California Breach of Fiduciary Duty

A fiduciary is a professional person who owes a legal and ethical responsibility to another person. Examples of people with fiduciary duties are lawyers, financial advisors, corporate officers, corporate directors, etc. A breach of fiduciary duty occurs when the professional person fails to do what was legally and ethically required of them.

List of 12 Biggest Business Startup Costs

It is a good idea for every entrepreneur to consider the costs associated with starting their business. Financing is stressful, but estimating startup costs goes a long way to ensuring a business succeeds.

Is it legal to sell homemade food in California?

California is one of the only states to allow individuals to sell homemade meals, including meals that contain meat. So long as you have California required permits and licenses, it is legal to sell homemade food in California.

10 Tips on How To Start A Food Truck Business

Running a food truck business is an exciting and trendy opportunity for any entrepreneur with a passion for food. If a business owner chooses the right financing options and follows the above tips, then he or she has every chance of success.

What Is the Partnership Agreement?

A business partnership agreement is a legally binding contract that outlines the terms and conditions for the partners of a company. The partnership agreement includes ownership interests, management structure, rights and duties of the partners, business operations, and financial decision-making.

What is a demand letter?

A demand letter is a letter that is commonly written by a lawyer on behalf of a client setting forth facts supporting a demand for money. A demand letter is usually the first step in resolving a dispute between two opposing parties.

What is working capital cycles?

In business, a Working Capital Cycle is the period that a company waits to receive payment to create available cash. A long cycle means tying up capital for a longer time without earning a return. Short cycles allow your business to free up cash faster.

What Happens When Business Partners Disagree?

Before going nuclear, when business partners disagree, the partners should talk about how to move forward. If talking fails, the partners may discuss a buy-out. However, if there is wrongdoing by one business partner, a lawsuit may be an option.

Bank Statement Business Loans

A business bank statement loan lender relies only on the company’s bank statements to qualify the borrower.

How to Prove a Verbal Contract

To prove a verbal contract is by getting witnesses to testify that the agreement was made. Also, proving a contract existed can be supported by documents such as receipts, invoices, delivery, statements, text messages, and emails.

What are business performance metrics, and why it is important?

Business performance metrics is a quantifiable measured value that shows the company’s progress and growth. Business metrics track the business progress and performance. A quantifiable measurement may include customers, revenue, and profits.

Is Sabotaging a Business Illegal?

Yes, sabotaging a business is illegal regardless of who is saboteur, e.g., business partner, competitor, family member, or customer.

What Do You Do When a Family Member Steals from You

When a family member steals for you, the first step is to talk to the person and let them explain calmly. Present evidence, a document, or a credible witness to support your allegation. Then, ask the person to return the money or asset. If the person refuses to return the money or asset, the following steps depend on the amount stolen.

How do you get approved for a SBA Express loan?

To get approved for an SBA Express loan, the business must operate for profit and in the United States. The business must have at least two years of financial statements and show a need for financing.

What is secured line of credit and how to get it.

An example of a secured credit auto loan is because the loan is secured by credit. In business, a credit line is secured by the business assets such as accounts receivable, inventory, and cash in the bank.

What is merchant funding and its benefits? How does it work?

A merchant funding is a business loan through a merchant financing lender that offers a lump sum. Merchant funding works by the lender collecting a percentage of the merchant’s credit card sales until the loan is fully repaid. The benefit of merchant funding is that the merchant gets immediate cash to operate the business.

What is a commercial bridging loan?

A commercial bridging loan is a short-term loan that “bridges the gap” between a company’s immediate and long-term financing needs. In a bridging loan, the borrower’s commercial is used as collateral to secure the loan.

Pros and Cons of Offering Employee Loans

The advantage of offering employees loans shows the employees that the company cares about them; the employee loan program encourages employee loyalty and retention. The disadvantage of an employee loan program includes the higher business expense for administrative costs and the risk of unpaid loans.

What is loyalty program benefits and its importance?

A loyalty program benefits are where retail businesses offer customers discounts, special incentives, and rewards for purposes of retaining customers and repeat business. For example, get one free at Starbucks for every seven cups of coffee.

Business Books for Women

In recent years, female small business owners have reached phenomenal levels of success in all areas of their lives. They have also shown that they are able and willing to break glass ceilings in many industries traditionally dominated by men.

What Type of Business Is a Partnership?

A business partnership is where two or more people are owners of a business. The types of business partnerships include general partnership, limited partnership, and limited liability partnership.

What Rights Do the Partners Have as Owners?

Unless otherwise stated in a partnership agreement, business partners as owners have equal rights to manage, operate, and allocate profits according to the partnership agreement.

What is line of credit for business?

A business line of credit is similar to a credit card, but you don’t pay the vendors. When a company needs money, the company borrows money from the line of credit by drawing down the line.

What to Do If You Think Your Business Partner Is Stealing?

You want to document everything and discuss your options with a business attorney. If you can substantiate that your partner is stealing, you may sue the partner for breach of fiduciary duty. Do not make accusations with evidence.

7 Steps on How Do You Buy a Business Partner Out

When a partner’s interest in playing a part in the business changes, it may be that the partner no longer wants to participate in the organization. If this occurs, then a business owner needs to find a straightforward, simple way to buy out the partner.

How Do You Prove a Business Partner Is Stealing?

Examine the company’s gross income, expenses, and net profit to prove that a business partner is stealing. Perform an accounting to determine if the business expenses are supported by receipts, invoices, and vendor statements.

Can You Embezzle from Your Own Company?

Yes, you can embezzle money from your own company if you’re not the sole owner. However, if you’re the sole owner, you cannot embezzle from your solely own company. You cannot “steal” from yourself. You can steal from your own company if you have co-owners, partners, or shareholders.

How do I charge my business partner for embezzlement?

Embezzlement occurs when a business partner takes money from the company for personal benefit. To make a civil charge for embezzlement against the partner, file a lawsuit for conversion and breach of fiduciary duty.  
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