Do I Need Operating Agreements for My Small Business?

If you're about to sign your first business contract in Las Vegas, NV, pause a moment. Before you put your name on that paper, take a moment to search "contract lawyer near me" and get at least a short review. That review could spare you years of expensive cleanup if something goes wrong. How a "Contract Lawyer Near Me" in Las Vegas, NV Can Help This document decides who pays, who owns the work, how long you are bound, and where you must fight if the other side doesn't fulfill their agreement, and once you sign, your leverage shrinks. It's important to get this right. Specific Nevada Issues Nevada has some contract writing rules that can catch first-time signers off guard. A sale of goods priced at $500 or more, for example, is not enforceable unless there is a signed record showing that a sale was made. An agreement that, by its own terms, cannot be performed within one year is void unless it is in writing and subscribed by the person you would try to hold to it. Your Disadvantage Landlords, software vendors, franchisors, and larger customers send their "standard" contracts first, and that paper always allocates risk away from them. Indemnity language may require you to pay their legal bills if a third party sues, for example, and even for harm they caused. All these clauses sit in sentences you will tend to skim because they're often deliberately written to be obscure. And lest you think this is an exaggeration, World Commerce & Contracting has measured what sloppy contracting costs and found that it drains value equal to nearly 9% of annual revenue, on average. Hiring Can Be Tricky Calling someone an independent contractor in an agreement does not settle the question for the IRS. The IRS looks at control: who directs how the work is done, not only what must be delivered. The Department of Labor applies an economic-reality test under the Fair Labor Standards Act. If you treat a worker as a contractor and the law later treats that person as an employee, you can owe back wages, employment taxes, and penalties. And whomever you employ, you have to make sure it's clear who owns anything they produce and what they're allowed to do with information they discover about your company. The contract needs to protect you and clearly cover scope, payment, ownership of work product, and confidentiality. Templates Are a False Economy Templates are cheaper than hiring a lawyer only if nothing goes wrong. A generic form does not know about Nevada's writing statutes, does not know whether your entity is an LLC, can't tell you that you signed in your personal name instead of the company's (which can destroy the liability shield you formed the company to create), and won't catch a conflict between the statement of work and the master terms. Do not sign first and hope the terms will be kind later. Contact us now at the Hutchings Law Group, serving small businesses in Las Vegas and greater Nevada, so we can read through your contract before the signature line becomes your problem.

Forming an LLC in Las Vegas, NV comes with fees, but you can plan around these, and an LLC formation attorney can help you sort through the numbers so nothing catches you off guard. By the Numbers: Forming an LLC in Nevada The mandatory state cost to create a Nevada limited-liability company is at least $425. That total covers three required items that have to be filed together with the Nevada Secretary of State: The Articles of Organization ($75) The Initial List of Managers or Members ($150) The State Business License ($200) There are other fees that might apply. For example, if you want to file for a DBA, the fee will vary depending on the counties you'll be doing business in. Then there's the possibility of city permits. These again vary by city. In Las Vegas, the fee is between $55 and $700, depending on the size of the business. You can also pay for 24-hour expedited service, which is $125, for two-hour service at $500, and for one-hour service at a fee of $1,000. Once the LLC is set up, expect a minimum of $350 in fees annually. How Your LLC Formation Attorney in Las Vegas, NV Helps With Fees Clarifying the Fees As you go through the paperwork, it's easy to become confused about which fees apply, particularly if you're asking for faster service or are trying to figure out your city fee. There are also higher fees that apply for foreign-owned LLCs and special fees if you won't be serving as your own registered agent. One of your lawyer's primary services is making all this clear and ensuring you don't pay a single dime you don't have. Moving Things Past the Fees After the state accepts your filing, you still need an Employer Identification Number from the IRS if you plan to open a bank account, hire anyone, or file certain tax returns. The IRS issues the number free of charge, but you can only apply after the state has formed the LLC. Your lawyer can make sure this goes smoothly. Your lawyer can also help you set up your operating agreement. This isn't filed with the state, so you don't need this to get your LLC registered, but without it, the state's default rules apply to your ownership percentages, voting rules, profits are split, and exit procedures. Those rules might not be what you want. Keeping Up With Annual Costs By the last day of the anniversary month of your LLC formation, you have to file an Annual List of Managers or Members for $150 and renew the State Business License for $200, for a combined $350. If you file late, there's a $75 penalty, and continued non-compliance can lead to your business being revoked: if that happens, you have to pay not only the back fees but also a $300 reinstatement fee. Your lawyer will make sure this doesn't happen by keeping track of dates, filings, and the law. If you are ready to form an LLC, or if you want a clear picture of the full cost for your situation, contact the Hutchings Law Group here in LV for a consultation. Our business is your business, and we serve clients throughout Greater Nevada.