Allison L. Friedman, P.A.
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Aventura Debtor/Creditor And Business Law Blog

Avoiding financial pitfalls important during business formation

Starting one's own business is an exciting time. However, it can also be immensely complicated, and if Florida residents hoping to open the doors to their companies do not think ahead, they could end up struggling far too soon. In particular, it is important that individuals remain aware of financial mistakes that could prove detrimental during business formation.

One issue that some business owners may run into is outsourcing too soon. While outsourcing can certainly prove useful when trying to help a business grow, it is important that business owners and operators understand each part of their business before allowing an outside party to cover certain aspects. By having this understanding, owners may prevent themselves from making outsourcing errors that could end up costing them more money than necessary.

Nonpayment for produce supply leads to business litigation

There are many scenarios in the business world that can lead to legal action being necessary. In cases where a business relationship goes sour, one company may file a lawsuit against another. In some instances, one company may not provide proper compensation to a supplier, and that lack of payment may result in business litigation.

Florida readers may be interested in this type of situation currently underway in another state. Reports indicated that a supermarket chain recently shut down its operations. However, the company failed to pay for approximately three months' worth of produce supplied by a produce wholesaler. As a result, the produce company is owed over $453,000 from the supermarket chain.

Business litigation: 2 out-of-state companies facing lawsuits

Businesses often face some degree of conflict. In some cases, one business may end up in a dispute with another business, and as a result, lawsuits could ensue. Business litigation is often complicated, but it may also prove necessary for company owners who feel that their businesses have been damaged by the actions of others.

Florida residents may be interested in a lawsuit and countersuit that the owners of an ice cream shop and owner of a coffee shop have respectively filed in another state. The lawsuit from the ice cream shop owners claimed that the coffee shop owner used misleading means in attempts to take over the ice cream shop's business. The actions purportedly included the coffee shop owner claiming to be the new owner of the ice cream shop when speaking with the public health agency.

Business litigation results from trademark infringement

Many companies are easily recognized by their names. Often, customers and potential customers associate the name with quality products. However, if another company starts using the same or similar name, confusion can occur, and businesses can suffer. If a company has trademarked its name and another company infringes on that trademark, business litigation may be necessary.

Florida readers may be interested in this type of situation currently underway in another state. A brewing company known as Priest Lake Brewing Co. has filed a lawsuit against Priest Lake Brewing for trademark infringement. The president for the first company had registered the name and logo with the state, and afterward, he attempted to contact the operator of the second company to inform him of the issues his company name was causing.

Business planning is important at startup and down the road

Running a business is always a complex endeavor. Business planning can often help address some of the aspects of business operations, and having a plan is not just a step to think about when starting a company. Florida business owners certainly want to make sure that they know the direction that their companies may go whether they are just starting or have been operating for some time, and creating a business plan is often a wise step.

As businesses grow and change, plans also need to grow and change. Many owners may have ideas of how they want to operate, and as they get underway, they may need to take different factors into consideration. Often, owners and operators can utilize their plans to detail the goals they hope to achieve in both the long and short-term. They can also forecast their sales and the amount of profit they expect to make.

Business formation: Getting started on an LLC

It is not uncommon for many individuals to have the desire to start their own businesses. However, far fewer people actually take the steps to turn their ideas into a reality. After having the resolve to start a limited liability company, Florida residents following this route will need to know their first steps for business formation.

One of the most important documents parties will need to create for their LLCs is an operating agreement. It contains various information that will address financial factors, management aspects and include the limited liability status. Of course, before even taking this step, individuals need to create a name for their LLC. Before becoming attached to one particular name, future business owners need to make sure that the name or similar names are not already in operation. Once a name has been decided, it needs registering. 

Business torts: Tortious interference can harm companies

Running a business involves a lot of time, hard work and strategy. In order to reach a specific goal, Florida business owners may put a considerable amount of effort into one aspect. After nearing the end of an important deal, they may find themselves shocked to learn that the other party has backed out or maybe another party has suddenly broken a contract. While this may legitimately happen in some cases, others may involve business torts.

In particular, tortious interference could cause substantial problems for a company. This particular act generally involves a person or business interfering with a business relationship involving another company. For example, a business may have a contract with an outside party, but a person or second business may intentionally coerce or entice that outside party into breaking the contract. As a result, the first business can face considerable hardships.

Business formation involves choosing a business structure

Getting ready to start a business is an exciting time in any Florida resident's life. Of course, taking this step requires much thought, and many decisions will need making. In particular, during the business formation process, individuals will need to determine what type of business structure they want to create and operate under.

The most common type of business structure is the sole proprietorship. This option is typically the easiest to form, but it does place all financial liability on the owner of the company, which could prove troublesome in the event of a lawsuit or other serious issue. Some individuals choose to enlist other individuals to create the company and form a partnership instead. This option allows for more than one individual to share in the profits and losses of the company, but like a sole proprietorship, partners are financially responsible.

Starting a business means preparing for possible lawsuits

Starting a business can be an exciting time in any Florida resident's life. While this type of venture can be something to look forward to, individuals may also want to remember that there are also many risks that come with starting a business. Therefore, parties may want to do their best to avoid lawsuits but also prepare for the potential for litigation.

One of the biggest ways that individuals can work to protect themselves and their businesses is to pay attention to their words and their actions. There are many instances in which business owners may need to speak with the public or make announcements, and if any of those announcements are made without thorough review, it is possible that someone could consider such comments  libelous or slanderous. This type of situation could result in a serious lawsuit.

Bank of America dealing with business litigation

Running a Florida business is no easy task. In fact, in some cases, the more successful a business becomes, the more issues they are likely to face, especially when it comes to claims being filed against them. As companies grow, take on new ventures and interact with more people, they also open themselves up to the possibility of more individuals potentially becoming disgruntled with the manner in which they perceive how the companies conduct themselves. As a result, business litigation could occur.

Bank of America is no small business, but it certainly faces its fair share of issues. It was recently reported that a lawsuit was filed against the bank by the National Fair Housing Alliance and similar groups for alleged discrimination. The claims state that the bank allegedly failed to care for homes it foreclosed on in predominantly black and Latino communities, while providing maintenance for foreclosed homes in predominately white neighborhoods.