The Benefits of Outsourcing

—- by1a476db8125bfac3238663ab57450f49_t302 guest author Melody Cobbe @CobbeLaw

The business communities, including small businesses, are always looking for methods to become more efficient and as result, increase their profitability margins. “Outsourcing” is a creative option available to small business owners. Whether the goal is to remain self-sufficient or position your business for an eventual merger or acquisition, businesses must become smarter about where to cut costs. By “outsourcing” essential needs of your business, such as legal assistance, accounting, secretarial work, and marketing, a business owner is given the flexibility of having a job function fulfilled without the long-term cost of having an employee fill that position.

Beginning April 1, 2013, U.S. Companies may file H-1B applications for Fiscal Year 2014 on behalf of prospective foreign workers

– By Guest Author E. Adriana Kostencki, Esq. 
Licensed to practice law in Venezuela and Florida, U.S.A.
eak@fowler-white.com

FWB_EMorenoParedes_crop_lr

U.S. employers may require the services of a foreign national to work at their company or business. Immigration laws, however, require that an individual whom the U.S. employer plans to employ or continue to employ in the United States is authorized to accept employment in the United States. If the individual is already a permanent resident (green card holder), the U.S. employer may hire that individual, but must comply with the employment verification requirements. If the foreign national is not already a permanent resident, the U.S. employer will need to file a petition so that the individual may obtain the appropriate immigrant or nonimmigrant classification.

One of the most common non-immigrant visa classifications available to foreign professionals is the H-1B visa category, which enables U.S. companies to hire foreign skilled professionals to perform services in a specialty occupation. The law defines “profession” as including, but not limited, to architects, engineers, lawyers, physicians, surgeons, and teachers. The specialty occupation requires the attainment of a bachelor’s or higher degree in the specific specialty (or its equivalent through a combination of education, training, and work experience) as a minimum for entry into the occupation in the United States.

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Partnership or LLC? What is best for your business?

Each Friday, I ask my Twitter followers to send me their legal question via private message or email.  I choose one question to respond to anonymously each week.  Below is last week’s chosen question:

“I am starting a business with three friends to develop a video game.  We are confused about the difference between a limited liability company and a partnership.  Can you help us out?”

There are a number of important distinctions between a partnership and a limited liability company (“LLC”).  You should discuss the details of your business’s goals with an attorney, but the following will give you an idea of the main advantages and disadvantages of each type of business.

Liability

The defining characteristic that distinguishes a partnership from an LLC is the LLC members’ limited liability. A partnership is a business operating under its owners’ names (although a trade name might be used).  The partners are personally responsible for the debts of the business. That means they could lose their personal assets, such as a home, car or certain investments to satisfy the partnership’s debts.  Also, if the partnership owns assets, such as a building or vehicles, the individual partners also personally own those assets in proportion to each partner’s contribution to the business, or as arranged in a partnership agreement. If no agreement exist, the statutes dealing with partnerships will apply standard rules.

An LLC, however, is an independent legal entity and owns property, enters contracts, and loans or borrows money separately from the individual members. The members will generally not be liable for the LLC’s debts or obligations. It acts as a “corporate person” and all traditional duties of a business are carried out in the name of the LLC only.  Members must be careful not to “commingle” their personal assets with that of the LLC, or a court might determine that the LLC is merely a “shell” for the members’ personal use and find the members liable for obligations of the business.

Forming the business

Partnerships are formed as soon as two or more individuals begin doing business.  No formal filing is necessary to “start” the business.  However, it is always advisable that a partnership agreement is in place to outline the contributions, distributions, and responsibilities as they relate to each partner.  Further, a business license or fictitious name registration may be appropriate.

An LLC can be owned by one or more people, known as “members.” An LLC is generally created by registering with the state of formation, as well as any states where it is conducting business. Paying a fee is required, although this fee is generally quite low.  An LLC should always have an operating agreement, even if it has only one member, to lend legitimacy to its corporate status. Read more about this HERE

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Red Light Camera Tickets 101

— By guest author Frank Menendez

Since July 2010 municipalities in Florida have been allowed to use red light cameras on state-owned intersections and fine drivers who run red lights with the aim of enforcing “safe driving.” Mmmhmm…sure…and a big money maker for the cities!

TicketFit Red Light Camera Sign

Have you received a red light camera ticket? Unlike being pulled-over by an officer and receiving a traffic ticket, you won’t know if you ran a red light at one of these photo enforced intersections until you receive a “Notice of Violation” in the mail.

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Guardianship 101 — What does guardianship mean for you and your loved one?

Perhaps you know someone who needs extra help with their personal or financial affairs, and have heard others talk about becoming a guardian for an ailing relative or a disabled family member. People that might need guardianship include those with dementia, Alzheimer’s, disabilities, or chronic illness. Read the article below for more information about what guardianship entails and what it means for you as the guardian.

What is a guardian?

A guardian is appointed by the court to make personal and/or financial decisions for an adult that has been determined by the court to be unable to manage their own affairs. This person is referred to as the “ward.” Before appointing a guardian, the court must first make a determination that the ward is so incapable of handling his or her own affairs that the right to handle his or her personal or financial decisions should be taken away and given to another person. Guardianship is an extreme measure and securing one should only happen when “no less restrictive alternative” is available.

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What is an operating agreement and why does your LLC need one?

An operating agreement governs the financial and functional operations of your business. It is a contract that is binding on the members of the LLC and ensures uniform and consistent handling of business matters.

Here are four reasons why your LLC needs an operating agreement:

1. Liability: An operating agreement helps give the members of an LLC protection from personal liability and confirms the LLC’s status as a true business entity. Having a clear operating agreement ensures that the LLC is not confused with a sole proprietorship or partnership. Simply filing your LLC with the state does not prevent you from being held personally liable for the debts of your business. Courts will look to many factors to determine whether your LLC is merely a shell for your personal use, such as whether company and personal funds are kept separate, whether the business was adequately capitalized, and whether an operating agreement is in place.

2. Misunderstandings among members: Perhaps your and your best friend are starting a flower business together. Or maybe you and your brother are finally opening up that restaurant you always talked about. You can never imagine arguing with this person over the operation of the business. Wake up and smell the reality: misunderstandings, disputes, and even expensive lawsuits result when people do not take the simple step to develop an operating agreement. You need to memorialize things like how much money each person is contributing to the business, how you will get paid when the business begins to take off, who will manage the day-to-day operations, and so on. There are many things to consider, but speaking with a qualified attorney can narrow the issues that are important to your type of business and make the agreement as basic as you like, or as detailed as necessary.
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5 Things to Consider Before You Create a Limited Liability Company in Florida

The Limited Liability Company (“LLC”) has gained popularity in recent years. Often thought of as a merger between the corporation and traditional partnership, creating an LLC is an important step towards legitimizing and protecting your business. Here are five things to consider before you get started.

  1. Your Goals: An LLC is one of the most flexible business entities you can create due to drawing the best qualities from partnerships and corporations. For example, LLCs provide the limited liability protection of a corporation and tax benefits of a partnership. However, members can elect for the LLC to be treated as a corporation for tax purposes, and a single-member LLC will result in the owner being taxed as a sole-proprietor.  Members are free to decide how management will be structured, how contributions and distributions will be allocated, who has managerial control, and whether or when capital calls will be necessary.  An LLC is limited in some respects.  For example, if you ever plan to take your company public you will have to convert to a corporation, which may result in tax consequences. Also, LLCs may not be attractive to companies that need to raise significant funding from investors or venture funds, as tax consequences to those outside investors may be problematic.
  2. Choosing a State for Organization: LLCs are recognized in all 50 states. While states like Delaware, Nevada, and Wyoming are generally considered to be favorable states for registering an LLC, if you do business in any other state you will need to re-register as a foreign company in that state. In the interest of keeping costs low, you should generally register your LLC in the state that you intend to conduct most of your business.  Florida’s LLC fees are relatively low and registration is easy.   Continue reading

Immigration Basics Series – Helping a Family Member Obtain a Green Card

Are you a U.S. Citizen who wants to help a family member obtain a green card? Here is the basic who, what, when, where and why of the process.

with guest author E. Adriana Kostencki

Who can I sponsor?

Any citizen of the United States can help certain family members become a “lawful permanent resident” – often referred to as obtaining a “green card” – by applying to the U.S. government. A citizen can apply on behalf of a spouse or children, and citizens 21 years old or older may also apply for their parents or siblings. The citizen, or “sponsor,” must establish a family relationship and that he or she has enough income or assets to support the family member in the United States.

What is a green card?Permenant-Resident-Card-Banner-POV

A “green card” is literally a green card that proves a person is authorized to live and work in the United States on a permanent basis and is registered according to the law. A green card is generally valid for ten years, but may be renewed indefinitely.

When will my family member obtain their green card?

A U.S. citizen’s spouse, unmarried children under 21, and parents will be invited to apply for an immigrant visa or adjustment of status as soon as your application to the government is approved. If your family member is already in the United States after entering legally, he or she can apply to adjust his or her status at the same time you file the petition. Other family members may have to wait several years before they can adjust their status in the United States. You can check processing times on the USCIS’s website.

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Five Reasons Why Solos or Small Firms Should Hire a Freelance Attorney

Clients’ requests for alternatives to the infamous billable hour are on the rise.  Freelancing attorneys are just one group of professionals changing the way we practice law by utilizing new ideas and strategies to provide legal services.   Sometimes a solo practitioner or small law firm needs additional help, but may be wary of bringing on a full time attorney in today’s economic environment.  Below are five benefits to solo practitioners and small firms that hire freelance attorneys.

1.  Freelance Attorneys Cost Less  

This is a no-brainer.  Freelance attorneys cost less than a full-time associate.  There are zero overhead costs like insurance, office space, or secretarial support.  With today’s cost-conscious clients, many times it simply makes financial sense to turn to a freelance attorney for assistance on a time-limited project.  Freelance attorneys can charge a flat fee or low hourly rate for their services, and because they work for themselves their fees are reasonable and reflect their minimal overhead expenses.

2.    Solos and Small Firms Can Profit From Freelance Attorneys

According to ABA Formal Opinion 00-420, a surcharge to the cost of using a freelance lawyer is appropriate, as long as the total charge represents a reasonable fee for services.  Further, by outsourcing projects that a freelance attorney is better situated to handle, solos and small firms free up their time to accept other profitable work and to develop their book of business.

3.    Freelance Attorneys Provide Honest, Quality Work

Without big-firm pressures to meet billable hour requirements, freelance attorneys complete the assignment requested.  Nothing more, nothing less.  For example, parties may agree ahead of time to a flat fee for a motion to dismiss or a research project that is to be billed by the hour, but not to exceed a set range of hours.  This alleviates the client’s concern that the attorney is “churning fees” and ensures a quality work product.  Further, the freelance attorney will work hard to impress and maintain the relationship with the retaining attorney.   Freelance attorneys can be selective about their assignments, so you can be assured that your freelancer is excited about the work and willing to put forth their best effort.

 4.  Hiring a Freelance Attorney Allows You To Provide Better Service to Your Clients

Feeling overwhelmed by an impending motion for summary judgment, or putting off tackling that research project because you do not know where to start?  Turning to a freelancer can ease those pressures and allow you to focus on the aspects of practicing law that make you tick.  Some attorneys simply do not like to write or research, and others cannot stand the thought of document review.  Again, because freelancers can be selective about their work, you can be certain your project will get the full attention it deserves.

5.  Freelance Attorneys are Flexible

Freelance attorneys are not always the same as “contract attorneys.”  Freelance professionals are self-employed, handle their own fees, offices, schedules, professional fee obligations, and the like.   They are paid as a 1099-reportable independent contractor.  To hire a freelancer, you do not have to deal with (or pay) a third-party agency or placement coordinator.  The process is simple with no hidden costs or red tape.  The relationship between the freelancer and the retaining attorney can be one-time or ongoing.

Bottom line:  Freelance professionals are there to make your practice simpler, more productive and efficient while passing financial savings along to your clients.

© Junilla Sledziewski 2012.

Welcome to Miami Legal Eagle!

Junilla Sledziewski, Esq. is an attorney in Miami, Florida that offers a low-cost alternative to large law firms, with the same high quality work and individualized attention that clients expect. Junilla offers services in the following areas of the law, and more:

  • Landlord/tenant issues
  • General small business representation/contract review
  • Formation of business entities including limited liability companies, corporations, and partnerships
  • Real estate contract review, including the purchase or sale of your home
  • Construction defects
  • Small claims
  • Demand letters
  • Traffic tickets
  • Writs of garnishment
  • Immigration

You should always consult with an attorney before making any significant decision that might affect your rights.  Ease your mind by having your case reviewed by an experienced and professional attorney at a reasonable price.