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5 Things to Know Before Investing in a Small Business

There are many reasons to invest in a start-up. Small-business investments have been one of the more popular ways individuals and families begin their journey to financial independence. The right investment, in the right company, at the right time can be very lucrative. That being said, there is a possibility of losing your entire investment without ever seeing a profit. Working with an investment broker is one way to go about the investment, but there are many investments that happen privately. Most small-business investment opportunities come from friends, family, colleagues, or by word-of-mouth. If you ever find yourself with an opportunity to invest in a business, we would suggest you tread carefully. Here are some things to remember when preparing to invest in a start-up company.

Business Status: Dissolution vs. Revocation

There are many things to keep track of as a business owner. One of those is your business's current status with the State of Nevada. Keeping an eye on your standing with the state is simple but it's not uncommon for businesses to find themselves in default or revoked status. There are also business owners that find that their business has run its course and decide to dissolve the entity with the state. There is clearly a difference between dissolution and revocation. What are the differences and is it okay to let a business be revoked?

Planning for the Unexpected as a New Business Owner

More than half of all new restaurants fail within the first year, and the statistics for other types of business aren't much higher. When you come up with a new business idea, you might spend years researching your idea and comparing other businesses before looking at funding or applying for loans. The most successful business owners plan for the unexpected problems that can pop up in the future.

Nonprofits in Nevada

The range of nonprofit organizations in Nevada is ever growing. It's no secret that nonprofits are eligible for a federal tax exempt status and this makes forming this type of entity popular with potential business owners. But the increasing popularity has also brought more dishonesty. In the current climate of nonprofits, with news stories of organizational corruption increasing, the Internal Revenue Service began to narrow its focus on the organizations and excess benefit transactions.

Women and Minority Owned Businesses

There are many advantages in Nevada for businesses and entrepreneurs. However, minority-owned businesses have historically been less successful in the state. Many minority-owned businesses don't have access to needed capital. Along with capital, they need proper management and training in order to contend for contracts and stay alive in the market. Beginning next year (2018), Assembly Bill No. 436 will require the Secretary of State to ensure that information for private and public programs to obtain financing and certifications are available to disadvantaged business enterprise.

Is Your Nevada Non-Compete Agreement Still Valid?

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.

Three Reasons Why You Need to Have a Business License

When you start a business, part of the requirements to operate the business involves getting you must get the proper licenses. Certain types of businesses require specialty licenses, such as a plumber, natural gas service, or electrician. Hair salons, nail salons, and other businesses also require specialty licenses. If you are unsure of the requirements for your type of business, a consultation with a Nevada business license lawyer may help to clear up any confusion.

How Corporate Lawyers Facilitate Successful Business Deals for Your Organization

While corporate lawyers often spend much of their time reading the terms of business contracts and ensuring that everything is within the law, these professionals can also help your organization to facilitate successful business deals. Hiring a corporate lawyer in Las Vegas can help you with negotiating terms, establishing partnerships, and protecting intellectual property rights.

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