Drug Testing Your Employees

According to the United States Department of Labor, reasons employers implement drug testing are to: Deter employees from abusing drugs and alcohol; Prevent hiring individuals who use illegal drugs; Provide early identification and referral of employees who have drug and/or alcohol problems; Provide a safe workplace for other employees; Ensure

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Using a No Shop Clause in a Letter of Intent

If you are buying a business, the process becomes expensive and tedious once the letter of intent is signed. For this reason, I recommend all buyers include a “No Shop” provision in their LOI. This provision prevents the seller from going behind your back and finding other suitors while you

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Why Bylaws are Important for Your New Company

The Secretary of State fails new businesses by not requiring you to record your company bylaws. It signals to the entrepreneur that articles of incorporation are more important than company bylaws, leaving bylaw drafting a mere afterthought. Every business is different and has issues that need to be addressed in

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Draft a Complete Employment Contract

Continuing with the theme of prevention, a wise entrepreneur drafts an employment contract for each and every employee he or she hires. But a wiser entrepreneur ensures the employment contract contains all the terms of the employment agreement, leaving little room (hopefully none) for later debate. If you aren’t thorough

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Leasing Office Space

Once you’ve outgrown your garage, your home office or your executive suite, you will probably consider leasing commercial office space. The best advice I can give you, the entrepreneur, is to treat the office space lease process the same way you might the car buying process. If you don’t, you

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Prevention Always Makes Cents, Part II

I wanted to follow-up with you concerning the importance of taking preventative legal steps when starting your business. Googling this weekend, I found a blog entry from Rhonda Abrams, author of The Passionate Entrepreneur on Yahoo! Finance. Here’s an excerpt: “Taking care of your company’s legal health is like taking

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Prevention Always Makes Cents

A recent Wall Street Journal article detailed the steps you should take to avoid collection problems when expanding your business across state lines. The article suggested prevention was by far the best defense. I believe that’s right, but I’ll make a much broader statement: Prevention is the best defense for

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The Theory Behind Subchapter S

Subchapter S status was enacted so that startup companies and other entrepreneurs would not shy away from choosing a corporate form of organization because of the potential for double taxation. A corporation that elects Subchapter S status is treated for federal income tax purposes as a partnership, but maintaining the

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What The Apple iPhone Teaches You

Today at Macworld, Apple formally announced their jump into the cell phone market with the iPhone. There are two main lessons that every entrepreneur, whether Apple-lover or PC-enthusiast, can take home from this landmark event: (1) You need to protect your intellectual property early. Steve Jobs said Apple has applied

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