Rockville, MD Business Lawyers
Our Rockville, MD business lawyers from the law office of Daniel J. Wright know that when you think of estate planning, you may concentrate mostly on the assets you have like a car or a house. These are very important things you want to figure out who to leave to in addition to any money you may have and any items of monetary or emotional value. However, what about your business? If you are a business owner, our business attorney Rockville, MD trusts applauds you. Owning your own business is no small feat and we believe that it is important that you determine what should happen to your business when you pass away. You have worked incredibly hard to have this business and with a little bit of careful planning, you can protect it after you are gone. To get started with succession planning for your business, contact our business lawyers in Rockville, Maryland.
Who should I leave the business to?
This is a personal decision, but you may choose to leave your business with a co-owner if you have this option. Without an agreement in place, it is possible that your spouse or loved ones may get the rights to your business instead of your co-owners and in many cases, this would not be the right decision. If there are co-owners in place who can automatically purchase the business through a buy-sell agreement, this may be the best option for your business.
How to Create a Succession Plan
When you are creating a business succession plan with one of our trusted attorneys, you are likely wondering what it should include. We have outlined a few of the most important factors we believe a business succession plan should have below.
- Choosing certain outside advisors who can help bring in an unbiased, objective opinion;
- Creating a means for training and teaching the new business owners in their roles;
- Determining who should manage the business;
- Determining if the business transfer should happen while you are alive.
These are just a few of the key things that a business succession plan will discuss and you should speak with one of our Rockville business lawyers to see what we can do to make this go smoothly for you.
Another thing you will want to consider when you are creating your business succession plan is the taxes. In between the time it takes you to include your business in a plan and the time you pass away, it is possible that your business’ value will continue to grow. Remember, the business will be taxed on what its value was on the day you pass away and not necessarily the value of the day you created this succession plan.
Speak With Our Business Lawyers in Rockville, MD Today!
For more information on business succession planning and how we can help, speak with the trusted Rockville, MD business lawyers from the law office of Daniel J. Wright now.
Other Business Issue Protections
The business lawyers Rockville, MD clients recommend at our law firm know that there are many areas where business owners need to make sure they are following federal and state rules and regulations in order to avoid running into problems, especially when it comes to their employees. One of those areas is how employees are classified. Failure to classify an employee properly can lead to serious legal and financial penalties.
Employee Misclassification and Why It Matters
The relationship between employers and employees comes with many legal complexities, and there are times when employers can improperly curtail employees’ rights, either by accident or design. One common place where this sort of issue arises is through employee misclassification – the practice of designating an employee as an independent contractor. Many employers choose to make an improper classification in order to avoid having to provide things like overtime pay or workers’ compensation insurance.
What Misclassification Is
There are two classes of workers for many employment law purposes: employees and independent contractors. Generally speaking, the difference between the two is the amount of control that an employer exercises over them. The more control, the more likely the court is to find that an employer/employee relationship exists. However, there are actually a variety of factors that courts look to, including:
- How much direction the employer gives in how to complete tasks
- The type of evaluation system the worker operates under
- Whether the business trains the worker
- Whether the business reimburses the worker’s expenses
- Whether the worker can work for other employers
- How the worker is paid
- Whether the relationship is intended to be long-term
- Whether the worker’s services are a key part of the business
Examples can often be helpful to understand whether someone qualifies as an employee or an independent contractor. For instance, as business lawyers in Rockville can explain, a secretary working at an office for years probably qualifies as an employee because of the high amount of control the employer would retain, as well as the other factors. Conversely, an IT worker hired to set up the company’s network would probably be an independent contractor because they are going about the work in their own way, and the job’s duration is limited.
Why It Matters
This distinction matters because it affects the responsibility that an employer has towards the worker. Many of the legal protections afforded to workers are only given to people in an employer/employee relationship. For instance, many employers misclassify their employees in order to avoid paying overtime pay or to avoid providing workers’ compensation insurance. They can also use misclassification to shift tax burdens onto the worker, by avoiding things like unemployment insurance and Social Security taxes.
Call Our Law Firm Today
If an employee believes they have been misclassified, they have the right to pursue legal action. If this happens, the worker’s classification becomes a matter for the court to decide and the amount the employee is awarded in damages could be substantial if the court finds in the employee’s favor. Don’t let this happen today. Work with Rockville business lawyers from the Law Office of Daniel J. Wright to address all of your employment and business needs.