LegalShield Blog

An operating agreement, one of an LLC’s (limited liability company) most important legal documents, should be one of the first documents you create when you form your LLC. So, does an operating agreement need to be notarized? Drumroll please . . . the answer is: no!...

As a business owner, it’s important to create a document that will serve as a list of rules by which your business will run. This is what an operating agreement is for. By creating an operating agreement, you’re crafting a document that states in no uncertain terms...

At LegalShield, we celebrate entrepreneurs every week, but we're particularly excited for Small Business Week 2022 from May 1-7. This year, the theme is Building a Better America through Entrepreneurship, in honor of the pivotal role small business owners have played...

When starting a business, one of the first decisions you have to make is what type of entity to form. There are a few different types of business structures to choose from, but two common formaitons are the DBA and LLC. In this DBA vs LLC article, we will discuss the...

So you’ve decided to launch and run your own business—congratulations! But before you pop the champagne and throw open your doors, it’s important to create a document that will serve as a list of rules by which your business will run. But before you break out your...

Let’s say you’re a business-minded entrepreneur, but you’re not interested in starting your own business so much as you’re interested in buying an existing one. If that sounds like you, you might be wondering how to buy an LLC. Buying an LLC can be a challenge, but...

Many entrepreneurs decide to register their company as an LLC. Once they register their LLC, many wonder, do I need a DBA for my LLC? The short answer: No, an LLC does not require a DBA. However, there are good reasons to register a DBA with your LLC—and good reasons...

Once you’ve finished setting up an LLC you may ask yourself, “Do I need a DBA for an LLC?” While it isn’t strictly necessary to do so, adding a DBA to an LLC can be a great opportunity to expand and diversify your company. Some even choose to operate multiple DBAs...

A limited liability company (LLC) is a business entity that offers significant benefits and protections to business owners. Whether you’re starting a brand-new business or forming an LLC for an existing company, it’s important to ask yourself this question: do I need...

A limited liability company is a type of business set up under state law. Although each state has its own set of rules governing the establishment of an LLC, few states have restrictions on LLC requirements related to ownership. Therefore, a member can be an...

If you’re in the process of turning your business idea into a legal business entity, forming an LLC is an attractive option. A limited liability company (LLC) is a business entity that provides tax benefits and protects you from personal liability should anything...

If you’re a small business owner, you look for every tax deduction you can take when it comes time to pay Uncle Sam. Which means rent, inventory, equipment depreciation, business miles—right? Unless some of those deductions are now ineligible, while others may have...

As you go through the process of incorporating an LLC, you’ll find many references to registered agents, and will be required to provide information about your registered agent. But what is a registered agent? Let’s explore how they are instrumental in forming your...

As a small business owner, you may be focused on cash flow and the coming quarter—not a lurking lawsuit that can shut your business down. Lawsuits devour time, money and even reputation. It’s enough to make you question how to protect your small business. There are,...

Maybe you’re just getting ready to launch your website or maybe it’s been live for some time now. Either way, we need to talk about compliance. There are many costly mistakes made by small businesses and failing to comply with the relevant website laws is indeed one...

When considering business entities, LLCs are one of the more popular formation options, and for good reason. Creating an LLC offers tremendous benefits to businesses, and their advantages far outweigh any potential drawbacks. Let’s discover the answer to the question...

Can you be fired for interviewing around? Are you looking for a new job right now? In the midst of The Great Resignation (or “Big Quit”), you’re far from alone. Millions of Americans are in search of a better job fit, and COVID-19 has prompted many to make changes....

If you’re starting your own business, it’s a good first step to protect yourself by incorporating. But it’s not enough to simply have the corporation—there are other considerations after creating articles of organization for your business. To fully protect your...

Over 8,500 workers are on strike at over 80 Denver grocery stores. Why? Over the past few weeks, thousands of grocery employees have left their markers, made signs, bundled up in the cold, and dedicated their days to fighting for their rights to justice and security....

In the beginning, many small businesses are often reluctant to seek assistance, even in instances when that help is sorely needed. It may be the case that they don’t know what they don’t know and think they can handle the matter on their own, but more commonly, a fear...

Documents reveal internal dissent among employees over Facebook's policies. We have already learned many concerning facts from the leaked Facebook documents. Now, a new nugget of info is making headlines: Employees have expressed their outrage in not-so-subtle ways...

A business name is one of your most important assets; along with your logo, it’s your public persona. As such, it’s important that you make sure to protect that good name against those who may try to misappropriate it for their own benefit. A trademark is a valuable...

October is Cybersecurity Awareness Month Cyberscurity is an increasing problem for both individuals and small businesses. As more of our lives, our work, and our purchasing is online, opportunities for hackers and other bad actors to access our personal information or...

A former worker is suing Tesla for $137 million. A San Francisco federal court announced Tesla must pay a former worker $137 million after his claim of enduring racial abuse while working for the company. Owen Diaz, a former contract worker for Tesla, faced a hostile...

Who is Elizabeth Holmes, and why is she on trial? Elizabeth Holmes is the former CEO of Theranos, a company that claimed to have created a blood test that only required a patient's drop of blood to test for thousands of different conditions. Theranos was considered a...

Starting a new business comes with a lot of decisions, not least of which is how to set up and run your startup. If you’re seriously considering getting into business for yourself, you’ve probably heard about sole proprietorships and LLCs as types of business...

Part of the appeal of an LLC as a business entity is its flexibility, but even with the versatility offered you might at some point need to change your LLC into an S-corporation. Fortunately, there is a process in place to allow you to do so. But before you make a...

Entrepreneurs looking to start their new business should be forming a legal entity, and often have to weigh the options of an LLC and a LLP when deciding on the particular business structure. While both provide benefits, they differ in some important ways, and finding...

Professionals considering forming a business entity to protect their personal assets may consider a limited liability partnership as an option. An LLP is one type of business entity for multiple parties going into business together, allowing them to pool their talents...

Building out your business requires a lot of hard work and just as much paperwork, and given those demands, there’s undoubtedly temptation to cut administrative corners ever so slightly in areas that seem less urgent or impactful. Take the employee handbook: at first...

If you recognize the importance of contracts, congrats—you’re well on the path towards running a business with a sound legal foundation. But it’s not enough to simply have contracts; just as working with faulty equipment or poor employees are nearly as bad as having...

If you’ve taken the steps to create an employee handbook, you might think it’s something you can set in place and forget. But your business is ever-growing and changing and as it evolves, the guidelines put in place need to change along with it. That’s why a periodic...

It’s fair to say that COVID-19 has disrupted every aspect of our lives and that businesses have faced unforeseen challenges in trying to muddle through a difficult, disruptive, and painful period in our history. But both life and business continue on, and as we head...

You’ve gotten your arms around the basic contracts for your small business but as your company grows, the complexity of the deals and types of agreements may morph beyond existing templates. As you move onto new stages of your business, you may need additional...

For the average individual without a background in law, a contract can read like something written in a language only partially related to English, with much of its meaning obscured behind inscrutable terms or phrases. That's why most of us have likely signed off on...

Given that a contract commits you and your business, it’s worth giving all the terms a thorough read before signing. While every contract is different, and the most important advice is to work with a qualified legal professional, it’s also good to educate yourself on...

The earliest stages of your business are about setting your nascent company up for success: making the right decisions and avoiding the costly mistakes and setbacks difficult to overcome. Businesses can help to protect themselves against those types of mistakes with...

Running your own business from home sounds great. You could work for yourself, let your creative ideas flow, and make money doing something you love. But once you settle into the daily grind of working from home, you may find that it’s easier said than done. It might...

6 Mistakes You Can Avoid Early on in Your New Business No one launches a business with all the answers, and for the more inexperienced entrepreneur, there are plenty of potential pitfalls early on that can potentially derail what would otherwise be a promising...

Taking stock of your achievements and challenges. This checklist is designed to help you organize your business’s finances and objectives. Understanding where you have been will help you develop a roadmap to growth and success in the year to come. Analyze Your...

Starting a business can be fun and thrilling, especially at the outset. But many of the mistakes that ultimately sink businesses can be made in the early days of the company. Just because your company has only a handful of employees and a sliver of funding or income...

Tips For Successful Launch Beyond Forming an Entity Every new business begins with hope and expectation; unfortunately, most startups are soon hit with a harsh dose of reality as to the challenges that come with building and growing a business. Running a business is...

In 2017, Lowes settled a $2.85 million-dollar worker classification lawsuit. The suit claimed that Lowes misclassified installers as independent contractors depriving them of workers’ compensation, liability insurance and requiring the workers to pay taxes as...

Assign Your Business Assets to Your Entity In the case of some founders, the task of forming an entity for their company is undertaken early enough that they need not worry about making changes to a business not yet off the ground. But for others that have operated...

Avoid Legal Issues—by Meeting Government Standards The prospect of creating a corporation may seem challenging at the outset, with the possibility of forms and paperwork beyond both tedium and your understanding of business regulations. Unless you’re a business...

Operating Without a Business Entity May Lead to Problems When it comes to incorporation, timing is everything. Incorporate too soon, and you may be stuck paying fees, taxes, filing unnecessary reports, and generally wasting time and money. Incorporate too late and you...

We’re guessing you’ve heard the old saying that there’s nothing certain in this world except for death and taxes. We can’t do anything about death, but when it comes to taxes—specifically business taxes—there are options. Taxes can be challenging for small businesses,...

So you’re starting your own business—congrats! Before you pop the champagne, it’s important to decide whether you’re going to be a sole proprietor, incorporate, or set up an LLC (“limited liability company”). An LLC is a good way for owners of a business to limit...

By forming your own business, you may be able to lower your taxable income. Plus, you gain the flexibility to decide exactly how you want to file your tax return. In addition to being taxed as an S Corp., a Limited Liability Company (LLC) can choose to file as a sole...

In the world of business entities, the Limited Liability Corporation (LLC) is a relative newbie in the United States. Unlike the corporation, which has been around since before the birth of the United States, laws concerning LLC's can still be a bit vague and...