June 2020 - Wyman Legal Solutions

What is a Limited Liability Company and Why Do You Need One? (Hint: It’s in the Name…)

Darryl lost his job recently when his employer cut its workforce in half.

And he couldn’t be happier.

He’s ready to scratch his entrepreneurial itch and realizes that there is no such thing as a “secure” job anymore. This was the push he needed to finally do it. Darryl is ready to start his own business.

Darryl knows that there are many different issues to consider when choosing the best business entity. His biggest concern is protecting himself from liability.

A Limited Liability Company (LLC) protects owners by limiting personal liability. Debts and obligations of the LLC belong solely to the LLC.

Darryl’s personal assets are protected from any of the LLC’s debts and liabilities.

In many ways, the LLC provides the same liability protection found in corporations. However, a LLC also provides these advantages:

1.  Fewer formalities than with a corporation (for example, an LLC is not required to have annual meetings or keep written minutes of its proceedings).

2. Pass-through taxation (the LLC is not required to file its own tax return).

3. Fewer restrictions on ownership.

Bottom line: a Limited Liability Company (LLC) provides substantial flexibility. It combines the liability protection of a corporation with the tax treatment of a sole proprietorship or partnership.

For these reasons, Darryl decided a LLC is right for him. At Wyman Legal Solutions, we love helping people like Darryl realize their dreams of business ownership. We help clients choose the proper corporate structure and help them make sure it is set up properly.

Call us today to help you set up your Florida LLC! (561) 361-8700

It’s all about FLEXIBILITY

On June 5th, the Paycheck Protection Program Flexibility Act (PPPFA) was passed. The PPPFA addresses some of the problems with the practical application of the PPP loan program. The biggest concern we hear from business owners is that they’re receiving the money before their businesses reopened in earnest. This meant using the PPP funds to pay workers to basically stay home.

Here is how the PPP loan program was changed to address this concern:

First, the PPPFA extends the time period to spend the PPP funds from 8 weeks to 24 weeks. This gives most businesses until almost the end of 2020 to use the funds on forgivable expenses. Since most businesses received loans equal to 2.5 months of payroll, this additional time should result in most loans being completely forgiven. Also, this let’s those businesses who remained closed longer use the funds to pay employees after they’ve returned to work..

Second, the PPPFA lowered the amount businesses are required to spend on payroll to earn full loan forgiveness from 75% to 60% . Businesses who were closed longer than others could benefit from using more funds for rent and non-payroll expenses.

Finally, businesses now have until the end of 2020 to rehire workers to meet “rehiring” requirements. Originally businesses needed to demonstrate they were back to full employment by June 30, 2020. The extra 6 months again benefits businesses that need longer to ramp up their operations.

There were some additional changes, such as extending the payoff of unforgiven loan funds from 2 years to 5 years.

Also, the first payment under the loan program is now due 6 months after the SBA makes a determination on your forgiveness application.

If you have any additional questions about your unique circumstances and PPP loan program, please call us at (561) 361-8700.

Handshakes are so 2019…. (and not for the reason you think)

Are you ready for the “Footshake” or the “Elbow Bump”? According to a recent USA Today article, the future of the handshake <https://WymanLegalSolutions.us18.list-manage.com/track/click?u=b473ae4fa843fc144f2b4b0be&id=accf74fff4&e=4beffc6fe7>  is in serious doubt because of Coronavirus.

So, is Coronavirus the reason that you should consider making handshakes a thing of the past? NO!

I truly believe we will be shaking hands again one day. However, one thing you should NEVER do with a handshake again is use it as a substitute for a written contract!

Doing a deal on a handshake is absolutely something that deserves to be dead and buried forever.

I cannot tell you how many times I have had a potential new client call me about one of these “handshake” agreements:.

“I loaned money to my brother-in-law without getting him to sign a promissory note and he hasn’t paid me back.”

“We hired a contractor to do work on my house without a written contract and now he’s charging me twice as much as what we agreed to.”

“I invested money into my friend’s business without a written contract and I have never seen a return on my investment. And now she won’t return my calls.”

Are oral contracts enforceable? Technically, yes (most of them anyway….). However, when contracts are not put into writing and signed by the other person/company, then proving the terms of the “agreement” in court becomes very difficult. It is also much more expensive in terms of attorneys’ fees to prove an oral contract.  Just have an attorney put the agreement into writing in the first place! It’ll save you money!

Not only do you want your contracts to be in writing, but make sure that they contain important provisions, including:

Attorneys’ Fees Clauses <https://WymanLegalSolutions.us18.list-manage.com/track/click?u=b473ae4fa843fc144f2b4b0be&id=77cad4c28a&e=4beffc6fe7>

Integration Clauses  <https://WymanLegalSolutions.us18.list-manage.com/track/click?u=b473ae4fa843fc144f2b4b0be&id=b8a491dea1&e=4beffc6fe7>

The bottom line is that the best time to consult with an attorney is before you enter into a contract. Clients of Wyman Legal Solutions know they should always consult with us before lending any money or signing any contract. And for those clients who are in our Business Lawyer on Retainer program, all of those consultations are included in their low monthly fee.

Getting a consultation with us is easy. Simply call (561) 361-8700 and ask for our Director of Client Relations, Jen. Jen will obtain some information from you and will schedule you for a complimentary call with me.