Blog: Small Business Law

Many people in New Jersey who want to start a new business will choose to purchase a franchise. Using a franchise means that the business gets brand recognition and other financial and business support from the franchisor. The tradeoff is that the business, called the franchisee, has to compensate the franchisor for its support. The franchisee also has to follow the franchisor’s rules when it comes to how the franchisee runs its operation. A franchise...

There comes a time when a business owner may need to prepare to transfer leadership to a new group of people. Sometimes, this is because the owner chooses to retire or because they move on to a new venture. Business succession planning can ensure that the business continues to grow, even when it changes hands. In a small, family-owned business, this can involve transitioning the business to a new generation of owners. Business succession planning...

As part of doing business, you might routinely ask employees to sign non-compete agreements, in which they agree not to work for competitors within a certain geographic range and within a certain timeframe. The purpose of non-compete agreements is to ensure your business’ trade secrets and other proprietary information is not unduly disclosed to your competitors by a former employer to your detriment. Non-compete agreements come under fire While you might only have the best...

All too often, small businesses imagine compliance with federal and state rules and regulations are the concerns of the big fish in the pond, that their noncompliance will go unseen, that sound compliance procedures and policies are not an essential part of the business build. But this isn’t so. The smallest company can be reached by state and federal regulations, and a lack of compliance is exposure. What might happen? Compliance irregularities leave a business...

The initial and most important decision for prospective business owners concerns business structure. For numerous reasons, the most popular type, the limited liability corporation (LLC), melds the advantages of a partnership with those of a corporation. Despite that, people recommend that the entity have an operating agreement to address issues that state law would otherwise determine. How many topics should the agreement address? A written document, the operating agreement is a legal contract that provides...

If you just beginning to form a new business, undoubtedly, you will have done your research and have learned about the process for starting a new business and the steps that you should follow to establish your business and in what specific order those steps need to be followed. Before you can even establish your business, you must choose a business structure so that you can run your business, register it and pay taxes. Many...

Even the best business ideas will be limited in their reach if there is not adequate financing. In New Jersey, every business must have some form of capital to either get off the ground or to grow once it is in operation. This is a frequent obstacle that prevents prospective business owners from moving forward. It is relatively easy to look up the possible options to accrue money for a business, but it is vital...

Business founders and owners are like the rest of us and do not work forever. Businesses, especially smaller businesses, should plan and prepare for future leadership. Succession planning is important to assure that the business evolves, stays relevant and competitive, meets the demand of its customers and complies with small business law requirements. Start now Begin planning now. Even if your business is a new venture, incorporate succession into your business planning. Have a long-term...

According to researchers, 90% of small businesses that undergo a disaster and do not reopen within five days go out of business forever within one year. Natural disasters, health emergencies and cybersecurity threats to small businesses underline the need for continuity planning. Business continuity plan A business continuity plan contains procedures and instructions the business should follow in different types of disasters to keep it in operation. The top priorities are employee, client, and independent...

Buying into a franchise can be a great way to satisfy your entrepreneurial streak. It can give you the well-established brand that you need to make a splash in the community while also providing you with the training, resources and equipment that you need to set yourself up for success. However, as you prepare to embark on your franchising journey, you need to be aware of some of the common issues that franchisees see, which...