small business

Corporate Transparency

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In recent years, there has been a growing emphasis on corporate transparency and accountability. Massachusetts, as a state known for its strong business environment, has taken significant steps to promote transparency within its corporate sector.

One of the key initiatives in this regard is the requirement for companies to disclose their financial information and corporate governance practices. This includes providing detailed reports on their financial performance, executive compensation, board composition, and other relevant information.

By implementing such measures, Massachusetts aims to foster trust and confidence among investors, shareholders, and the general public. Transparent corporate practices not only enhance accountability but also contribute to the overall stability and sustainability of the business ecosystem.

Furthermore, Massachusetts has established regulatory bodies and frameworks to ensure compliance with transparency standards. These bodies monitor and enforce regulations, conduct audits, and investigate any potential violations. This proactive approach demonstrates the state’s commitment to maintaining a fair and transparent business environment.

As a business operating in Massachusetts, it is crucial to prioritize corporate transparency. By adhering to the state’s regulations and voluntarily disclosing relevant information, your company can build a positive reputation, attract investors, and establish long-term relationships with stakeholders.

If you have any questions or require further information on corporate transparency in Massachusetts, I encourage you to reach out to the appropriate regulatory authorities or consult legal professionals specializing in corporate governance. You can contact our office through ravosalaw.com.

Thank you for your attention to this matter. Together, we can contribute to a more transparent and accountable corporate landscape in Massachusetts.

This is only intended to be information and does not constitute legal advice nor does it create any attorney-client relationship with the firm.

9 Key Business Mistakes that May lead to Litigation:

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Whether you are a veteran business owner or just starting out, there are some key mistakes you can make that often lead to litigation. No one wants to be the object of a lawsuit, so I thought I would take a minute and highlight some common mistakes that sometimes lead to suits and how to avoid them:

  • Form a business entity. Make sure you know what type of entity to form and that you check all the correct boxes as you move through the process. 
  • Obtain insurance. We insure our homes, our cars, and even our wedding rings. Your business should be no exception. Where there is equity, there is risk, and insurance ought to be one of the first things on your checklist as you build your business. 
  • Write it down. It’s important that you require all business agreements be hammered out in contract form, looked over by an attorney, and signed on the dotted line. Leaving this to chance never ends well. 
  • Protect your intellectual property (IP). If you think of it, you own it. Do not dismiss the importance of IP and how imperative it is to protect it as you scale your business. 
  • Trust your employees. No one likes to be micromanaged, and traditionally speaking, employees who are trusted to do their jobs correctly are more content and less likely to cause issues down the road. 
  • Hire smart. If you hire the right employees, making sure to flesh out references and pay attention to red flags, you will build a business that runs smoothly and help avoid litigation.  
  • Understand local laws. From copyright laws to taxes, there is a lot to wade through. Failure to put in the work to understand these laws can cause real problems down the road. Be sure to get a lawyer involved earlier than later to help navigate these issues. 
  • Prioritize accurate bookkeeping. Messy accounting has been the nemesis of many business owners. If this is not your cup of tea, consider hiring someone to help out.
  • Pay quarterly taxes. Getting behind on taxes is a bad way to run a business. Keep up on all of your accounts, especially taxes, to avoid issues later. 
  • Under promise and overdeliver. Customers do not like to be disappointed. Be careful not to make promises you can’t keep. Under guarantee results so you can overdeliver, ensuring customer satisfaction.

As always, please reach out if you want to chat more about this topic. We have attorneys ready to discuss your needs. More information on our team is available at ravosalaw.com.

What You Need to Know About Non-Compete Agreements

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As you may have heard, there have been some key developments recently regarding the legality of non-compete agreements. 

Given that this news will have implications for businesses across the United States, I wanted to reach out with an overview of the situation:

  • Earlier this year, the Federal Trade Commission (FTC) proposed banning companies from enforcing non-compete agreements as part of their employment arrangements. 
  • While that proposal remains pending, the National Labor Relations Board (NLRB) recently released a memo stating that it found non-compete agreements to violate labor laws unless “narrowly tailored.”
  • All of the activity around noncompete agreements is not limited to the federal level. Several states have already adopted legislation rendering certain non-compete agreements invalid, and new legislation has been proposed in New York, New Jersey, and Minnesota. 
  • While this may be a positive sign for the just-under one in five U.S. workers impacted by such arrangements, many businesses now find themselves wondering how to best protect their intellectual property from the impacts of employee turnover. 
  • With changes pending and pronouncements potentially still to come, it’s important that business owners and operators reevaluate their current employment contract procedures to remain compliant with any required alterations or impacts. Whether a contract is compliant – at least at this time – is likely to be on a case-by-case basis, so it’s worth individual review by an attorney. 

On that note, if you have questions about your existing contracts or would like one of our professionals to review them for compliance, please do not hesitate to respond to this email or give the office a call.

As always, our team of legal experts is here to help you navigate the business law landscape with confidence and clarity. 

Tips For Starting a Small Business

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Given there are 33.2 million small businesses in the United States, I find it’s a good idea to periodically reach out to people in my network and see if any have plans to open a small business — and that’s exactly what I’m doing today!

If you or someone you know is planning to start a small business, I want to note that our office is here if you need any legal assistance – and unfortunately, many do. I don’t say this to scare you, but the stats do speak for themselves: 

  • 36% to 53% of small businesses are sued every year.
  • 43% of all small businesses are threatened with a lawsuit every year.
  • Approximately 45% of small businesses are currently involved in litigation.
  • 90% of all businesses experience a lawsuit at some point in their lifespan.
  • Around 12 million contract lawsuits are filed every year against small businesses.

The good news is that a lot of these legal issues are avoidable. Business lawyers can help to clarify any loopholes in a contract, make sure clear guidelines are set between employees and owners, and even provide ways to back out of a contract (e.g., due to a change in business strategy). This kind of assistance is especially necessary in the first couple of years when owners will be interacting with many new faces.

With that said, if you or someone in your network is considering opening a business or is in the process of doing so, feel free to reach out.

Small Business Month

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May is Small Business Month, and as a small business ourselves, we know the challenges businesses of our size face — and the importance of having a strong network of supporters. 

That’s why we want to express our appreciation for your continued trust and support. It’s clients like you who keep us afloat and allow us to continue to provide the highest level of service and guidance to our community. We consider our work a privilege, and we couldn’t be more grateful. 

Let’s all support the small businesses in our community! And if you are looking to start your own business, we may be able to help. Contact us today with your business formation questions.

Avoiding Small Business Tax Audits

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The last thing any small business owner wants is a run-in with the IRS.

After all, you try hard throughout the year to run your business with integrity and best practices. So, is there anything you can do to avoid a small business tax audit? There most certainly is. 

Here are seven tips that should help you steer clear of an audit:

  1. File on time and file completely.
  2. Report your numbers accurately and exactly (avoid only reporting nice, round numbers). It’s one thing to make a simple math error. It’s another to alter your numbers deliberately. Plus, reporting only round numbers seems, well, fishy.
  3. Pay your estimated taxes on time throughout the year.
  4. Don’t exaggerate your business deductions.
  5. Don’t report a lifestyle that doesn’t match your income. The IRS reviews your personal tax return along with your business return, so they should line up.
  6. Your business shouldn’t only lose money year after year. If you report a total loss a couple of years in a row, the IRS is going to wonder how you’re staying in business.
  7. Stay away from misclassifying workers. Misclassifying workers is one way to avoid paying state payroll taxes, and the IRS knows it. If your business solely employs independent contractors, it may be enough to trigger an audit.

If you follow all these steps and still get flagged by the IRS, don’t panic. Compile the documents you need to defend your small business tax return and give us a call–we’re happy to help guide you in any way we can.

Call us today at 508-655-3013.