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

Business formation starts with the right information

The urge to start one's own business can hit at any age. Some individuals may have had entrepreneurial dreams from a young age, and others may have had the desire to start a business later in life. Whatever the case, if making this dream come true is the desire for Florida residents, they will certainly want to move forward effectively with their business formation.

Individuals can help themselves by first assessing their skills and resources. Starting a business can take a major toll on finances as well as personal lives, and it is important that individuals understand their limits and driving forces. Some people may want to move forward with a business idea because it is something they have been passionate about for some time, and others may want to work toward a more lucrative career path. Whatever the case, it is important that individuals feel ready to take on an entrepreneurial role.

Considering co-owner relationships when starting a business

There are many times in life where Florida residents may not want to take a certain step alone. In particular, parties who want to start their own businesses may find it useful to have a partner or co-owner of the business to help with certain aspects of operations. Of course, co-owner relationships can be tricky to navigate.

As with any type of relationship, a co-owner business relationship can have its ups and downs. At first, parties may feel as if they are on the same page only to see down the road that one party is not pleased with the decisions of the other party. In some cases, the issues in decision-making could become so severe that the company suffers because the co-owners cannot get along.

Protecting companies from business torts

Though running a business is a dream of many Florida residents, it is important to understand that achieving that dream does not mean that the process will always be stress-free. In fact, it is not unusual for companies to face business torts, or civil claims, that could cause significant difficulties. Fortunately, business owners can take steps toward working to prevent such claims and handling them effectively.

Limiting risks is a key purpose of a business owner. Owners certainly do not want to put their companies, their employees or themselves in unnecessary jeopardy, so one of the first acts to implement is to pay attention to words and actions. Owners and their employees should work to avoid saying or doing anything that could be construed as libelous, slanderous, illegal or, possibly, even significantly controversial.

Lack of payment could lead to business litigation

Many business owners know that running a company could see its fair share of legal issues. Disputes could arise that can only be resolved through the filing of a lawsuit, such as those sometimes needed to collect on unpaid invoices. Certainly, other attempts to collect can be made, but for difficult situations, business litigation may be needed.

Florida readers may be interested in such a case currently underway in a neighboring state. Reports indicated that a woman worked as the chief diversity officer for a sports complex project that was set to begin two years ago. From Nov. 2017 through March 2018, the woman worked as a consultant on the project with the intention of receiving payment for her services. However, a co-founder for the project stated that a formal agreement regarding her role on the project was never created, and as a result, he believed the woman was volunteering her time. Still, he reportedly agreed to pay her as a sign of goodwill.

Breach of contract issues may require business litigation

Florida business owners depend on contracts to keep their companies running smoothly. Without contacts in place, it would be impossible to hold parties with whom one does business or whom one employs accountable when various issues arise. When a breach of contract occurs, there are a number of ways to deal with it. In some cases, business litigation may prove necessary.

A breach of contract occurs when one party fails to fulfill any material obligations agreed to and documented in a contract. When this breach occurs, the offended party can do a few things. First, it may be possible to talk out the issue and find a resolution without taking any further action. Second, an alternative dispute resolution method such as mediation or arbitration may be utilized to negotiate a fair resolution. Finally, third, take the issue to court.

Having a plan is an important part of business formation

Like when taking any major action, Florida residents wanting to start businesses need to come up with a plan. A business plan can make a considerable difference in ensuring that parties have a solid direction to go in when trying to get their companies off the ground. Of course, a lot of effort goes into business formation, and having a plan is just one of the first steps.

Creating a business plan can give entrepreneurs a better idea of what information they already have and determine what areas they need to give more focus. Individuals may want to start their plans by considering their business objective. This objective can include what the business operations are going to focus on, when the business is expected to start operating, what products or services it will offer, where the business will operate, and more.

Business litigation results after former Tesla workers take IP

While most Florida business owners likely want to avoid lawsuits whenever possible, some actions may need to be addressed in court. For instance, if former employees steal confidential information and provide it to rival companies, business litigation may help seek compensation for these violations. Automotive company Tesla is currently involved in this type of ordeal.

According to reports, four individuals who formerly worked for Tesla used their work emails to send proprietary information to their personal email accounts. They then provided that confidential information to their new employer and Tesla rival, Zoox. Zoox is a robo-taxi startup, and Tesla claims that because the former employees provided the company with trade secrets, Zoox was able to reach conclusions regarding logistics, warehousing and inventory control operations years ahead of time.

Business litigation, other legal action can stem from worker ire

Workers are often what keep Florida businesses up and running. As a result, company owners often bring in outside help and create contracts so that everyone involved understands his or her particular role. Still, some workers may feel that they are not classified correctly, like when considered independent contractors, and business litigation could result.

While many people know that Uber is a growing and successful company, they may not know that the business has been locked in a dispute with its drivers for six years. In 2013, two individuals filed suit against the company for classifying its drivers as independent contractors. They claimed that the classification was just a way for Uber to get out of paying minimum wage or providing benefits. The suit also gained class action status.

Seinfeld involved in business litigation with classic car dealer

When accusations come against a business, it is wise for the company to handle the situation in the best manner possible. After all, accusations of wrongdoing could immensely damage a company's reputation and overall business operations. When the situation is serious, business litigation could result, especially if a displeased individual files a legal claim.

Florida readers may be interested in a lawsuit involving comedian Jerry Seinfeld and an out-of-state classic car dealer. Apparently, Seinfeld had purchased a 1958 Porsche from the company in 2013 and then sold the vehicle for $1.5 million in 2016 to another company. However, the company that bought his vehicle claims that it is not an authentic Porsche. As a result, the company sued Seinfeld for selling a fake vehicle. Seinfeld stated that he was relying on the certificate of authenticity that he received from the first company.

Being resourceful is an important part of business formation

Having dreams of being an entrepreneur is admirable. These dreams can drive a person to take important steps toward reaching the desired goals, but business formation and eventual success can be difficult to achieve. However, that does not mean that Florida residents should give up on their dreams.

Most entrepreneurs start their business journeys with the understanding that they will be long and difficult. In particular, they may feel that these difficulties will stem from a lack of resources, which is understandable. Of course, a lack of available resources does not mean that entrepreneurs cannot be resourceful. In fact, being resourceful can often help individuals and startups work with the limitations that they have and still achieve their goals. Certainly, this involves making hard choices and sacrifices, but it is not impossible.