Litigation is expensive. At best, it’s an unwanted entry on your business’s balance sheet. At worst, a lawsuit could mean going out of business— if the businesses assets must be liquidated to pay a judgment or if the businesses resources must be used for litigation expenses. The following are tips to avoid or limit the impact of litigation.

1. Keep good records.

Without good records, proving what was actually said or done by the parties to a lawsuit is a difficult, if not impossible, task. Further, good records can effectively destroy a factual dispute. Good records can result in a dismissal of the case or at least limit the case to issues of law, rather than factual issues, which…

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“Double taxation” refers to the two “levels” of tax that are assessed by the IRS on profits earned by C Corporations–a “C Corporation” simply refers to a corporation that is taxed according to subchapter “C” of the US Tax Code–or other entities that elect to be taxed as C Corporations. The first level of taxation is at the corporate level; these taxes are assessed on the corporation’s profits before the company distributes any dividends to shareholders. The second level of taxation applies at the individual level when the corporation distributes dividends to individual shareholders.

How to Avoid Double Taxation

Entities that elect to be taxed as C Corporations (or are taxed a C Corporations by default) are subject to double taxation. Businesses…

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As a small business owner, you know the importance of protecting your business’ assets. One of the most valuable assets for many small businesses is its intellectual property. Many business owners spend countless hours deciding on the perfect name and logo for their business. And for many businesses, it’ d be a serious setback if another company started doing business under the same name or logo. It’d be especially devastating if you had no way to keep another company from doing so. You’ve probably read numerous articles that tell you that you should  “register your trademarks.” But you probably haven’t been told why you should register your trademarks. Today, I’m going to explain the primary benefits of registering your trademark with the…

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In a recent article on the inVigor Law Group blog, Kyle Hulten wrote about the definition of a security. “Security” is not just a fancy name for stock in a company. A security can be a variety of different things, including equity, debt, and other investment instruments. The definitions vary from state to state and the federal definition is far from clear. Because there isn’t a clear one size fits all definition of “security,” it makes issuing securities (or issuing something you may not believe is a security) a risky endeavor.

It’s important to learn what a security is because there are serious consequences for failing to comply with state and federal securities regulations. Just ask Bernie Madoff. If you’re ever…

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