If you're a small business owner, you've most-likely considered entering a partnership at one point or another. From an outsider's perspective, joining a partnership can seem like a great use of resources, capital, and energy. However, most partnerships don't pan out the way partners would hope because many business partners enter a partnership for all of the wrong reasons. Some of these reasons include not having enough connections, shortage of financing, lack of skill set, or simply not wanting to operate alone. That being said, there are many variables that may come into play and derail a partnership as the business picks up.
Every business owner has signed an agreement at one point or another. In a perfect world, these agreements would always be executed as they're agreed upon. However, everyone knows that contracts are breached and agreements aren't honored all the time. These disputes and incongruities can lead to more trouble, headaches, and lawsuits more often than not. One thing is certain, when these issues arise, all parties are faced with potentially higher fees and costs than they initially anticipated. As a business owner, it's imperative to find a way to mitigate the cost of these issues when they do arise. So, how is this done?
When should my hobby become a business? It sounds like a simple question but there isn't a simple answer, unfortunately. Whether it's sewing, painting, cooking, or performing - any hobbyist and business owner should understand the IRS's rules for what qualifies as a business or a hobby. Whether your venture is a hobby or a business affects your tax liability. In addition to the tax implications, you should also consider your legal requirements and protection.
The Nevada Supreme Court passed a decision last year that may have caused your agreement to become invalid. In the case of Golden Road Motor Inn, v. Islam, the court held that non-compete agreements cannot extend further than what is reasonable and cannot create hardship on the employee. The biggest change from the ruling is the decision that courts may not "blue line" ("blue pencil") contracts, meaning to change or delete terms to make the contract legal.
It wasn't long ago when documents weren't saved on a hard drive, a server, or sent via email. Today's businesses have gotten very good at going paperless and as a result have gotten more efficient. E-signatures are a big part of the efficiency and are essential for people on the go. They are common now but there are still some lingering questions related to e-signatures.