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Archive for the ‘Employment Law’ Category

Varying State Regulations Create Business Friendly Regions

Saturday, January 12th, 2008

There are always factors that make one community or state more attractive to the business world than other places. For some businesses that require large numbers of workers, a state with high unemployment might seem attractive. For some kinds of existing businesses, a state that offers incentives for relocating there might seem like the best place to go.

The regulatory climate of each state is something that every business must consider when they decide where to locate. Regulations are extremely varied between the states, so some research is certainly in order when deciding on the best location and business climate.

In analyzing the differences between the regulatory climates of each state, such factors as transportation, state bond ratings, business incentives and state business law and regulations are all taken into consideration.

A recent analysis by Forbes Magazine listed Rhode Island, Michigan and Montana as those with the least attractive states for business with regard to the regulatory climate. Of course, this is only one factor among many to consider when thinking of where you should do business. Some businesses must rely on certain raw materials that are only available in some regions. A regulatory climate that is unattractive may have little effect on such a business if that is where their raw materials are found. Transportation of these raw materials may well be prohibitive to a more “friendly” regulatory climate.

This list by Forbes Magazine also states that the most “friendly” regulatory climates to be found for business in the United States are in Virginia, Texas and North Carolina. Again, this must be put into perspective. While this factor might entice some businesses to look at those states, there are always other aspects to consider. A good example is North Carolina. This list shows it on top in the area of regulatory issues but this state comes in 30th for economic climate. While you may find regulations a breeze, there may not be the economy there to sustain your type of business into the future.

Every business is different. There are certain challenges one business may face that another never will. Obtaining raw materials, hiring a work force, legal matters that may vary from one state to another, costs of doing business are just some of them. The regulatory climate of any region is one of the considerations to be looked at. Some businesses are much more highly regulated than others are just by their nature. A business dealing with explosives is obviously going to have more state and national regulations on it than a simple retail outlet will have.

The key to finding the best environment for a business is a mix of all the factors. Some highly regulated businesses may well find the less involved regulatory climate of some states more attractive than other states. It should also be kept in mind that any business may not be less liable in the eyes of the law simply because the local state regulations are more lax than other states are.

Business Law Post Enron is a New Game

Saturday, January 12th, 2008

After the Enron scandal several years back, business law has had to deal with the fallout of some business behaviors that became apparent. The corporate world was shaken to its core and forced to re-examine its policies and procedures and in fact, it’s very responsibility to groups who were not even shareholders.

The law of business in America has had to be modernized somewhat. The Colonial big business attitudes of profits at all costs may have been degraded by bits over the years, but this particular case crushed some of the last vestiges of its stronghold on the corporate world. No longer were profits to the shareholders of a company the main concern with disregard to responsibilities and duties elsewhere.

Fiduciary duties of top management in business have been put under the microscope and subsequently been made a higher priority. This means that besides protecting the assets and profits of the business for the shareholders, there must also exist due care and responsibility to other matters of public interest. These matters have been listed as:

· The Environment
· Human Rights
· Public Health and Safety
· The Welfare of the Community
· Employee Dignity

While the matter of incorporating these matters into business law may not be finished yet, the business world and top executives in particular have had to sit up and take notice of what is going to be expected of them from now on.

The world of big business must now ensure that they are their own watchdogs within their organizations to some degree. They are to be aware of how their business dealings affect these other groups and take some responsibility for that. They must be weary of deals that will increase their profits at the expense of these groups. This is indeed the last crumbling wall of the colonial (now American) exploitative spirit.

One of the biggest effects on corporate America is the need for business lawyers who can help guide them through this new world of restrictions that threaten to make them vulnerable. They are under scrutiny and they need the expertise of lawyers to help them develop new policies and new ways to define their responsibilities as part of the community. Especially now that this new code for business responsibility at the top of the ranks is forming and developing, any big business will not want to risk falling behind in conforming to these new expectations.

While Enron may be a big example, all businesses must take heed of the new credo. Business at the expense of humans, environment is not acceptable. Executives hiding behind the almighty “making a buck for my shareholders” must remember that they are now also responsible to the community at large.

Business lawyers are in demand now and they will continue to be for some time. They are needed in helping the business world meet their responsibilities in a much better way.

Are Future Presidents Pro Business?

Saturday, January 12th, 2008

At election time in the United States, all sorts of groups want the presidential candidates to show strength in the areas that concern them most.  Environmentalists want candidates who are pro-environment while social groups want candidates who are serious about social programs.  In the business community and those who make their living from serving businesses want a presidential candidate who is pro-business.

Pro-business is generally a term that is used to describe the policies and attitudes that encourage business to grow and prosper in this country.  Examples of some actions that are considered pro-business are a reduction in corporate taxes, government grants for small business.  Some people believe that less government regulation is a pro-business move as well. 

Many people generally believe that the Republican Party itself is pro-business where the Democratic Party is recognized as leaning toward more social issues.  While this may be true, there are individual party members who certainly display tendencies opposite of this broad brush stroke.  The truth is that in order to be successful as a presidential candidate, one must be concerned with the balance between all the groups that make up the country and try to meet the needs of all of them as much as possible. 

Pro-business politicians have long argued that a pro-business government means help for everyone because business makes the country go around.  This belief is up for debate on a continual basis.

So, during the 2008 election there may be some candidates that are considered to be more pro-business than others.  If you are looking for one with that label attached to them, then your decision will be easy for you (or maybe not – depending who gives them that label!).

Since the Republicans have been traditionally labeled as such, let’s start by looking at them.  Rudy Guiliani ran New York City for quite some time.  Business there seems in good shape although he does appear to be fairly interested in social issues as well.  Maybe he is one of those who actually tries to find that “balance”. 

Mitt Ronmey is another republican in the running.  He isn’t very popular in the polls.  He apparently can raise a lot of money though, so business people may choose to see that as very pro-business.

On the democratic side we have Hillary Clinton.  She is extremely popular, well spoken and appears to actually have a conscience.  While this may seem very socialistic to some, again she may be on track with “balance”.  Again business people may find her amazing skill at fund raising to indicate pro-business leanings (or just good business).

Barach Obama is popular but lacks a lot of experience and many wonder if that includes business insight, while John Edwards is very keen on doing away with the haves and have-nots in this country.  That may well be construed by the business minded as one of those things that will magically disappear once business is promoted enough to trickle some of the wealth down a little.

As in any election, stick to the candidates that stand for what you personally stand for.  Do your research and VOTE!

What is a trademark anyways?

Saturday, January 12th, 2008

We’re not necessarily talking about Elvis’ trademark sideburns or Catherine Hepburn’s trademark voice, but that’s not too far from the path.

They’re everywhere you look, and yet do you really know what they are? Trademarks are a strange animal and it’s necessary that you get to know them if you have business endeavors of any kind. Whether you’re making your own trademark or using other trademarks, there’s a whole lot to learn.

The definition of trademark is a pretty simple one. It’s only later that the topic gets complicated. Basically, a trademark is just a sign of some kind that distinguishes a company from all the rest. Trademarks sit under the umbrella of “intellectual property.” A trademark can come in many different forms. Maybe it’s am image or a a turn of phrase. Paris Hilton was recently poked fun at for trademarking the phrase “that’s hot.” Indeed, there’s a lot of controversy over what can and should be trademarked.

Are you thinking about buying some intellectual property? If you do, you will be able to take people to court if they use your trademark without permission. It’s important that your company has a signature and unless it’s protected, it’s useless and can be used by just about anyone. A trademark might seem a simple concept enough, but if you overlook the issue, it could cost you a lot down the road.

When talking about trademarks, you’re bound to get into some murky water. For instance, some marks, logos, phrases, images, etc, become trademarks over time, if by chance they simply grow to become synonymous with a particular product or service. When we think of trademarks in this way, it’s pretty apparent that a trademark is not a narrow concept at all. Anything that conspicuously distinguishes something from something else, in a sense, can technically be a trademark.

What about those little circles with the “TM” and “R” in them? What do they mean? The “TM” refers to trademark and the “R” refers to a registered trademark. While they serve as gentle reminders that the trademark is protected by law, they aren’t necessary. There are both unregistered and registered trademarks out there, the latter obviously carrying more weight in a court of law. Most of the trademarks you see on TV and in magazines are registered.

Just as with physical property, intellectual property – when handled in court – is dealt with based on its jurisdiction.

There are five basic kinds of trademarks: distinctive, arbitrary, suggestive, descriptive, and generic. On the other hand, there are some symbols that can never be used in trademarks, like national flags. It’s also important to note that national and international trademark law vary, so especially if you are conducing business overseas, you should be aware of that.

A trademark can open your company up to all kinds of business and separate it from the pack, but if it’s not formed carefully, it may misrepresent and misdirect your company. So choose your trademark  intelligently and make sure you understand the law backing it up so that you can put it to good work

To incorporate or not to incorporate?

Saturday, January 12th, 2008

It seems that more companies feel the need to incorporate than ever before. In today’s society,  just everybody can sue and everybody can be sued and that makes a corporation all the more attractive. However, there are unfortunately more obstacles surrounding incorporation than ever before. So what are the advantages and disadvantages of incorporation? Is it right for your company?

First off, incorporation might be the best decision for one company and the worst decision for another! There is not just one right answer out there. The key is to determine what liability concerns you have in particular and what tax benefits you desire and then find out if incorporation will help your company fulfill its goals better.

Probably the biggest benefit of incorporation goes to the company’s owner. Once a company becomes a corporation, it essentially becomes a separate entity and its owner will only have limited liability as a result. Don’t think that this gets individual shareholders out of the clear, though! Shareholders can be held liable in many circumstances; they can’t always hide behind the corporation.

There are many other benefits, though. Investors are drawn to corporations, and for some companies, investors are invaluable. Not only will investors buy stock in your company, but your employees can have stock options as well. Your employees also might be happier working for a corporation because corporations are forced to be well-organized and consequently, are very efficient.

Still, there are a handful of glaring disadvantages of incorporation that you should also consider. While hopefully a corporation will run like a well-oiled machine, it takes a long time to build that machine. And time is money. Incorporation is a process that all must be entirely committed to. A company doesn’t turn into a corporation over night!

Even after the process of incorporation is over, it can be a real headache to those in charge, as they must welcome a lot of bureaucracy into their company. Many decisions and practices are standardized for corporations across the country and this means your employees might have to go to a regular meeting every week that they didn’t have to go to before. It’s no secret, but small companies are a lot more personal and easygoing than corporations.

There’s also the whole tax issue. While incorporation can sometimes lead to some great tax benefits (which you’ll want to research on your own), it can also lead your company into some financial difficulties. Whether or not taxes get better or worse for your company depends on your specific situation, but don’t assume tax benefits will be waiting for you just around the corner if you incorporate.

Will incorporation make your company bigger, better, and more secure? Probably. But what is the price you will pay for a sturdier company? If you don’t have many concerns about liability and your autonomous company is performing quite well, then there might be more cons than pros to incorporation. So, when deciding whether or not to incorporate, just remember to take into consideration every aspect of your company.

What Your Trademark Can Do For You

Saturday, January 12th, 2008

So, we all know how important a trademark is. Every company must find a way to distinguish itself from every other company and it’s easy to do just that with a simple symbol, image, design, phrase, or word. But what if you were to take the next step and buy rights to such a trademark? What would you get in return? The short answer is: protection.

The long answer is a bit more complicated. Essentially, a trademark is intellectual property. Even though it’s not tangible, like a car or a pair of shoes, you can still own a trademark. A lot of people opt to buy the rights to their trademark, especially those advertising commercial products, because that usually means unauthorized use of it can be successfully fought against in court. For instance, if Company A uses Company B’s trademark to express some kind of message, Company A can be sued.

Now, trademark “abuse” can be policed even if there’s no official representation of the trademark over at the US Patent Office. In other words, sometimes a trademark evolves naturally and becomes distinct on its own. Even if it’s not registered federally, it doesn’t mean it’s not a trademark that should be recognized by the law. However, by registering a trademark, you make it a lot more likely that it will be protected. Basically, it’s easier to prove the legitimacy of  registered trademark, as opposed to an unregistered trademark!

Additionally, if you registered your trademark, that means you get exclusive use of it. That makes your trademark, and thus your company, all the more distinct and valuable. There is a caveat here, however. You must register your trademark in a specific jurisdiction, so your rights are somewhat limited in that sense. Laws vary form state to state, so make sure to research this as you think about the protections you will receive.

If you don’t use your trademark, this will not bode well for you. Regular use of the trademark is a requirement if you want to protect it! Find out what precisely is required in your jurisdiction and make sure to follow through with the guidelines. Chances are using your trademark won’t be an issue – why would you want it to go to waste?

Now, because of the First Amendment, there is an inherently limited protection of the trademark. Not every unauthorized use of your trademark is against the law. In general, though, if you register your service mark, you’ll find that the law is more eager to be on your side.

Remember: you still have protections, even if you’ve never formally bought rights to your trademark. It’s often a good idea to inscribe “TM” next to your trademark, in this case, so as to let people know you think it is original and distinct. This will be helpful later on if you do end up in court, but hopefully it will prevent you from being there in the first place.

Hopefully now you’re more enlightened about the strange ins and outs of trademarks and you can use this special property properly. 

Self-filing for Incorporation

Saturday, January 12th, 2008

Incorporation can be an equally important and intimidating task for the owner of a company, and because it’s also so expensive, many people prefer to file for incorporation without the help of an outsider. This will certainly save a soon-to-be corporation a lot of money. But unless a company’s owner knows what he or she is doing, it can be a great waste of time and effort and it can also hinder the incorporation process and render the company vulnerable to all kinds of problems.

So if you’re interested in self-filing for incorporation, it’s a good idea to get well-versed in all the jargon and learn about each and every step you’ll have to take. You may want to get an attorney on your side, regardless, if only to address concerns as they come up. And they most certainly will come up!

Here is a simple introduction to incorporating your business. The first question you must ask is: “what kind of corporation do I want to form?” There is a lot of literature, on and off line, that can help you find an answer – ultimately, it will depend on the size and function of your wannabe corporation. As you continue on with incorporation, keep in mind that the laws vary from state to state and county to county. You must constantly research the legality of every aspect of incorporation before you make any official decision.

Now, another important decision you will make is what state to file for incorporation in. For many, this decision will be an easy one, as you’ll file for incorporation in whatever state your company is located in. But what if you have more than one company spread out across states? Again, research the laws in the multiple states and pick the state that will be most auspicious for your corporation. Some state laws are more favorable toward businesses than others.

Here’s the fun part. What are you going to call your corporation? While you want to encourage the creative juices to flow, you won’t have total freedom in choosing a name. Some names are taken. With the help of the Internet and the United States Patent and Trade Office, you should discover what options are off the table pretty soon.

Now for the monotonous part. You must elect someone to register the company and also do all he filling for incorporation. That person could very well be you. This is indeed cost effective. Just make sure you know what you’re doing first, or you might find yourself in over your head.

Once you’re through with this process, you can start the real  and more exciting work: determining the structure of your corporation, its Board of Directors, bylaws, etc.

So, do you think you’re ready to self-file for incorporation? The more informed you are, the better prepared you will be to get your corporation up on its feet without the help of an attorney or incorporation service. But the money saved won’t be worth it if you are ignorant about incorporation, because your mistakes will likely be costly ones.

How much work do I have to do to work in the U.S?

Saturday, January 12th, 2008

Just because you don’t live in the United States permanently, doesn’t mean you can’t work there! Many people are successfully granted work visas every year so that they can temporarily reside in the U.S. legally without truly moving from their home. Let’s presuppose that you do not have a greencard. In this case, can you work in the U.S.? Before moving on, remember that there are several ways you can apply to temporarily live in the U.S. This article will mostly address non-immigrant workers.

Your first requirement for working in the U.S. is quite obviously authorization from the U.S. government. But how do you get this? Well, work authorization typically comes in the form of a visa which you must apply for at the consulars office of your embassy to the U.S. There are a variety of visas you can apply for; this is a highly individual and variable process! On occasion, you can apply for a non-work related visa and then petition for work authorization later. People studying abroad often to do just this.

The consulars office has a great deal of control over your fate. Documents and motives help your case, of course, but it is ultimately up to the embassy if you receive a work visa or not. This is not meant to discourage you, but just to enlighten you about how temporary visas are never guaranteed.

There are also those who can gain work authorization by simply legally immigrating to the U.S. In other words, they do permanently reside in the country and thus gain working privileges. This is how you would get a greencard (mentioned earlier).

But how do you know if you’re a good candidate for a work visa? First off, an employer in America can sponsor you. This is a avenue that’s commonly taken. However, you can also sponsor yourself. This is just a bit trickier to do. Only if you are incredibly in demand here in the U.S., for example you have extraordinary ability in your field, can you sponsor yourself. So can you work in the U.S.? Yes, if you manage to earn a green card or there is an employer in the country eager to hire you on board. Otherwise, it might be more challenging to work in the U.S. unless you are an exceptional employee with rare skill and/or talent.

An important note: the more skilled and professional you are at your job, the better chances you will have at successfully traveling to the U.S. and working there. Engineers, doctors, and teachers, for instance, easily work in the U.S. As do workers who fill in gaps that U.S. residents won’t fill. In other words, if you’re interested in a job that no U.S. citizen wants, then your work visa will be more swiftly granted to you.

There’s still one last pesky caveat: some occupations simply don’t qualify you for a work visa! Make sure to check these detailed requirements out as you prepare to work in the U.S.