Business Law

June 28, 2013 By Wesley Jones

Expert Legal Counsel Can Help Protect Your Small Business

If you ask a successful business owner which two outside professionals are indispensable to the operation, the likely answer will be “my accountant and my attorney.” Why an accountant is beneficial to a small business is pretty straightforward. They can handle the ongoing financial aspects of doing business such as deciphering complicated tax forms, reviewing sales figures, managing expenses, and charting accounts.

When it comes to legal counsel, many small business owners hesitate to retain an attorney after the initial work is complete for the business start up. They typically feel that it is just not necessary to keep in touch with an attorney until there’s a problem. The hole in that approach is that retaining legal counsel can prevent problems from cropping up. Consider it this way: consulting an experienced local business attorney like Wes Jones is equal to the proverbial “ounce of prevention that’s worth a pound of cure.”

Here’s an example of how having legal counsel available comes in handy before problems arise. Attorney Jones can look over your standard contracts or new employee interview questionnaire and bring light to potential situations that could arise. For instance, you may not be aware of certain laws pertaining to anti-discrimination and innocently ask the wrong questions that could justify a lawsuit and big headaches!

Situations like that are why having a consultation arrangement with an attorney, such as Wes Jones is so vital for providing legal review and guidance. Other times when having an attorney on your team is a plus includes:

Forming a corporation – Although it is quite possible to file articles of incorporation without lawyers, the administrative side of managing the complex tax and legal requirements often requires the services of a corporate attorney. Also keep in mind that it may be simple enough to form a legal business entity such as an LLC or business partnership without legal help, however, forming a corporation with shareholders and a board is a more complex process.
Litigation – This can include dealing with lawsuits by current or former employees or customers, breach of contract matters, debt collection, discrimination or harassment lawsuits, environmental lawsuits, government investigations for legal violations, and a variety of other types of disputes.
Buying or Selling a Business – Attorney Jones has years of experience with negotiating sales agreements, lease agreements, and more.

To learn more about how Wes Jones can assist in your business operations, please schedule a consultation by calling 910-256-5800.

June 5, 2013 By Wesley Jones

Four Major Business Formation Types

Anyone who has ever contemplated setting up a business was likely overwhelmed by the vast number of decisions such a venture demands. Perhaps more than or equal to considerations such as a business plan, identification of measurable objectives, location, and name, how the business is structured is of utmost importance.

When establishing a “business entity”, there are four different ways to do it. Depending on the circumstances and nature of the proposed business, each choice presents advantages and disadvantages. Rather than take the advice of friends or family members, it is always best to discuss your options with a qualified and experienced business law attorney. Doing so will give you the piece of mind that comes with covering all the bases, for both your own legal protection and possible tax benefits as well!

The four ways in which a business may be set up are: Sole Proprietorship, Partnership, Corporation, and Limited Liability Company or LLC.

1. Sole Proprietorship – This is the most simple business entity there is. As the name implies, the establishment has just one owner. That owner may choose to use his or her own name or “d/b/a”, which means, “doing business as”. The requirements are minimal – just a social security number and the necessary permits and licenses.

These are often a top choice for small businesses because they are so economical to start up. Benefits include the fact that income is taxed once, instead of twice as a company and then personal source of revenue. Sole proprietorships are not subjected to as much government involvement and taxation as some other business types. Since only one person is involved, conflicts with partners, their associates or family members are nonexistent. Also, it is very easy to dissolve.

A major point to be aware of is that under the law, there is no distinction between the individual and the business. That can sometimes jeopardize the owner’s personal assets should the business go through financial problems. The same is true in the reverse, should the business owner experience hardships, such as divorce, illness, or some other personal difficulty, the business may be negatively affected.

It takes an astute individual to successfully operate this type of business. They are 100 percent responsible for all of the decisions and raising capital. There are also certain employee benefits that can not be fully deducted from the firm’s income. Owners should realize that some costs could only be partially deducted later as an adjustment.

2. Partnership – This formation type takes place when two or more individuals form a written agreement to operate a business together. Partnerships can also be established between other businesses and among one or more businesses and one or more individuals. This choice is also fairly simple and inexpensive to establish. However, partnerships have their own unique set of tax and liability issues.

Of course, this type of business allows for shared responsibilities when it comes to raising capital, making important decisions, and managing operations. On the flip side, when conflicts arise, no matter how large or small, unresolved issues can endanger the business. Those considering a partnership need to proceed with caution, because if one partner makes a financial or legal misstep, it can spell disaster for the company as a whole.

3. Corporation – Going through the process known as “incorporation” sets up the most flexible type of company. Corporations are state-chartered and have a number of legal rights. Its owners have limited liability because the corporation has separate legal standing. The owners are thereby protected from personal legal action, should the business be sued. However, corporations undergo a great deal of scrutiny and are held accountable for their actions at a higher level.

For example, the government oversees the operations of a corporation and requires them to appoint a board of directors, hold regular meetings, record and publish meeting minutes. Income is also subject to taxation as both personal and business revenue. Another point to keep in mind is that ownership can be transferred through the sale of stock or transfer of a controlling interest within the corporation.

4. Limited Liability Company-LLC – These types of businesses have many of the same built-in advantages as corporations. Along with their limited liability, LLCs can be owned by a variety of entities, including individuals, trusts, other LLCs, and corporations. When it is set up under the proper guidelines, an LLC can be taxed like a partnership, which is an advantage. However, there is quite a bit of paperwork required to form and operate an LLC to ensure that it will not be taxed as a corporation.

Although all four of theses common business entities are fairly straight forward, there are slight differences that govern their creation and operation, which can vary from state to state. That’s why it is always a very good idea to retain the services of an experienced business lawyer. Wilmington attorney Wes Jones is well-versed in these matters. Please make an appointment with Wes so he may assist you in exploring options and deciding which approach is best for your next business venture. Read more about his practice and the other types of cases he handles.

The office is located in Lumina Station, just before the Wrightsville Beach drawbridge at 1904 Eastwood Avenue, Suite 30. To make an appointment or get more information on the services Attorney Wes Jones provides, please call 910-256-5600.

May 1, 2013 By Wesley Jones

Starting and Owning a Franchisee Business in Wilmington

For a small city, Wilmington, NC has an impressive number of franchise businesses. From fast food mainstays to upscale grocery stores, a variety of retailers and service companies, the Port City has proven a profitable location for such operations. Many prospective small business owners choose the franchise route because it usually simplifies the trial and error process and eliminates some of the headaches associated with business start-ups. Additionally, they have the added confidence due to the built-in support a corporate franchise headquarters can provide. However, many do not realize the pitfalls that owning a franchise may present.

As an attorney for the greater Wilmington, NC area, Wesly Scott Jones frequently works with small business and franchisee clients. Wes has walked down this road before and is aware of the legal complexities that owning or investing in a franchise can pose. Wes certainly acknowledges that each case is unique. However, when it comes to disputes within the realm of franchises and franchisees, there are several typical scenarios.

– Competition – Your franchise agreement should mention the limits on the number of franchises that may be established within a given geographical area. In setting yourself up for success, this is a very important detail to consider and confirm.

– Full disclosure from franchisor – As with all laws, this point can vary area by area. Most jurisdictions require franchisors to provide their franchisees with absolutely all of the material facts they know about the business. For example, unresolved legal issues, finances, insurance issues, or anything else that stands to impact the business. Omissions, misleading details, and misinformation, may be against the law and grounds for legal action.

– Breakdown in the support system – Many small business owners are attracted to franchises in the first place because of the promise they hold for ongoing support. All too often, that promised backup disappears after the final monetary obligation by the franchisee is resolved. Wes can review your franchise agreement and see if any violations have been made.

If you’re in the Wilmington area and thinking about starting a franchise, you should be aware of the many legal issues surrounding these types of businesses. Whether you’d like to review a proposal, have questions about an existing agreement or would just like to have a pair of experienced eyes look over whatever is already in place, we invite you to contact the Law Firm of Wesley Scott Jones.

For a free consultation, call 910-256-5800 or complete the form to the right.

April 15, 2013 By Wesley Jones

Breach of Contract

Along with the goods and services a business provides to its customers, its success and reputation are also built on the strength of its contracts. In business, agreements can be verbal or in writing. Regardless of their format, each type should be honored.

When one or more of the parties involved does not honor a contractual binding agreement or arranged exchange, a breach of contract occurs. This also applies to situations when one party’s performance is met with interference or one party indicates to the other that the agreed-upon promise will not be fulfilled. One’s behavior and conduct can also be an indicator of their inability or unwillingness to honor the established agreement. Legal action may be the next step.

In breach of contract cases, Attorney Wesley Scott Jones believes investigating all of the mitigating circumstances involved in the dispute is key in arriving to a positive outcome for his clients. Based on his direct experience with contract law, Wes knows that simply denying wrongdoing is not enough. Jones is also keenly aware as a defense attorney who represents those in the construction and real estate industry, that taking quick action is vital in the development of a strong argument.

With questions concerning contractual dealings, there are an infinite number of situational factors that can come into play. A few typical examples are:

The contract contains terms that are unclear.
The agreement was supposed to have been in writing but all or portions of it, are not.
There are clerical errors in the contract that can impact its validity and outcome.
One party was coerced into signing the agreement, under circumstances such as intimidation or false information.
In order to fulfill the contract, illegal activity would have to occur.

In matters that concern business, construction, or real estate in the greater Wilmington area, Wes Jones has demonstrated extensive experience. If you are in danger of being charged with breach of contract, please call the office of Wesley Scott Jones at 910-256-5600.

Learn more about his practice and the other types of cases he handles here: wsjlaw.com/practice-areas-and-services

The office is located in Lumina Station, just before the Wrightsville Beach drawbridge. The address is 1904 Eastwood Avenue, Suite 30. To make an appointment or get more information on the services Attorney Wes Jones provides, please contact Wes Jones today.

April 1, 2013 By Wesley Jones

Business Litigation Lawyer in Wilmington, NC

Those that go into business for themselves usually do so for a few reasons:

They have found their passion
They feel that they can provide their clientele with needed goods or services
They are confident that they can make a living through their commercial or business venture

Of course astute owners will be conscientious to ensure that their business operates by the book and that their customers are absolutely satisfied. Unfortunately, even the best-laid plans can take a negative turn. Disputes can arise in cases of business against business or private individual vs. business. Thankfully, many such matters are often resolved through negotiations or arbitration proceedings. When matters cannot be resolved, Business Litigation is an effective means to do so.

Local Wilmington attorney, Wesley Scott Jones, is well-versed in the realm of Business Litigation. Because of its wide scope, when dealing with matters of Business Litigation, it is extremely beneficial to retain the services of an experienced professional. Attorney Wesley Scott Jones has a high degree of expertise in managing disagreements that can result in the various stages of business startup and ownership. He has handled a number of cases involving conflicts between business partners, customers, employees and third party contractors. Jones can also work with clients who are caught in disputes involved in the process of starting up, operating, or dissolving a business.

From banks to builders, small business owners to sub contractors, each different industry comes with a specific set of potential problems. Wesley Scott Jones has gone to bat for his clients on issues representing the full spectrum of possibilities unique to businesses, including general disputes, fraud, bill collection, breach of contract and unfinished work. Choosing a lawyer who is knowledgeable on the multi-faceted world of business law can be invaluable in protecting your rights and your company’s business interests.

To learn more about the various industries Jones has represented and case topics he deals with, please visit this website to learn more: wsjlaw.com/practice-areas-and-services/business-litigation/

To contact the office of Wesley Scott Jones directly, simply call 919-256-5800.

Other resources:

March 25, 2013 By Wesley Jones

Litigation Lawyer for Construction Firms in Wilmington, NC

The Wall Street Journal reported in November that home building is on the rise. According to the article, the Dow Jones U.S. Home Construction Index rose around 80% over 2012. As the housing market continues to improve, the uptick in new construction is expected to continue. There was even more encouraging news in a press release from Harvard’s Joint Center for Housing Studies. It was announced in the fall that, “annual homeowner improvement spending is expected to reach double-digit growth in the first half of 2013.”

Although this is all certainly good news, anyone involved in the business of construction knows there is a great deal involved in building or remodeling a home. As building activity picks up in the Wilmington area, those in the housing industry will want to safeguard their interests and protect themselves from possible disputes that could arise. As a Construction Law Litigator, Attorney Wesley Scott Jones is available to assist clients with a variety of scenarios that builders, contractors, design professionals, suppliers, and owners are often challenged with. In addition to residential cases, Wes is also able to take on cases relating to commercial and government projects.

Due to the detailed nature of construction, remodeling, and home building, it is a good idea to retain legal counsel as a preventative measure. Attorney Jones can guide you through the initial stages of contract preparation so you’ll begin each project on the right foot. Since there are also typical pitfalls that can besiege even the most simple construction project, Wes uses his experience and offers attention to detail on tasks like investigating and negotiating issues such as disruption claims, negligence, and defective workmanship. Wes tackles these cases by evaluating each aspect of the project. Regardless of how large or small the task at hand is, it typically involves these basic topics:

The range of work that the parties involved agreed to
The documents set forth that explain the project and work it will entail
How the contractor, designer, or supplier will be reimbursed
How the owner will be guaranteed that the builders are doing their work properly and to code
How any problems with the above-mentioned areas be handled

When you contract the services of Attorney Wesley Jones, his role will be to help you plot a course of action so there will be smooth sailing and no surprises. Learn more here: wsjlaw.com/practice-areas-and-services/construction-law-litigation/. To contact the office of Wesley Scott Jones directly, simply call 919-256-5800.