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Phoenix, Arizona, Business Law Blog

Know how legal business structures can impact you

One of the decisions that you have to make when you are starting a business is what legal structure you are going to use. There are several that you can choose from, but you shouldn't rush into choosing one. Instead, look at the circumstances of the company and make a decision based on that.

Different types of structures provide different benefits and protections. It is always best to evaluate this from an honest perspective. The last thing that you need is to face legal action down the road only to find that you are in more trouble than you would have been if you had chosen a different structure.

Construction delays can come from unexpected issues

Construction project delays can be very frustrating for the contractor and the person who is having the project completed. Many of the delays that come with projects are due to factors that can't be controlled. The weather is an example of this. Supply shortages are sometimes another cause.

Home and business owners who hire contractors might start to get upset about constant delays. This is when they need to turn to the contract to determine what options they might have. In some cases, there isn't much you can do. In other cases, you can take whatever course of action is laid out in the contract. This might be taking the contractor to court or it may be getting a discount or refund based on the length of the delay beyond the dates noted in the contract.

Are your ready to sue someone?

Filing a lawsuit against another company, a vendor or a customer is not something you relish. You know the process can consume your time and money as well as draw valuable resources from your business. However, there are times when bringing your dispute to civil court is the only way to reach a fair resolution.

If your case involves a small amount of money or damages, you may be able to handle it yourself. However, if a considerable sum of money or the well-being or reputation of your business is at risk, you would do well to seek the representation of a skilled business litigation attorney who is familiar with the Arizona laws that apply to your situation. Your attorney will also guide you through the process of presenting your case to the court.

Know how your estate planning decisions might impact heirs

One factor that people who own a business have to consider is the value of their estate when they pass away. Estate taxes can wipe out a good portion of what the heirs are supposed to get. There are options that you can use to reduce the possible estate taxes that are going to come. Here are some points to consider:

You can give gifts to your children and grandchildren. Currently, you can give a person $12,000 in a year without them having to pay the estate tax. Since the limit is per person giving and per person receiving, you and your spouse could each give the same individual a gift of $12,000 so the person receives a total of $24,000 that isn't subjected to a gift tax and that pays down the estate at the same time.

Franchises can provide marked benefits for franchisees

Some entrepreneurs opt to start their business through a franchise. This type of business is one that can be very successful since you are pulling part of your business through the franchise brand. It is important that you find a franchise that works for your needs and in your area to increase your chance of having a successful business.

Just to be clear—there are risks present with starting a franchise. There is still a chance that it won't be successful and you will lose your investment. You have to be willing to put in the work that it takes to grow your business or you will doom it.

Commercial transactions sometimes need another set of eyes

Protecting your company's interests is a top priority for most business owners. Sometimes, you are confronted with having to make some large investments. When one of these is purchasing real estate, you need to make sure that you are doing what is best for your company.

We know that you might not need to have to deal with all the small details that come with commercial real estate transactions. We are here to help you review the documents and terms so that you know you are getting what your company needs.

Considerations for commercial real estate purchases

Buying property for your business is a big undertaking. This is a long-term investment that should be taken seriously. There are many different points to think about when you are trying to determine if a property is the best one for your needs.

One of the primary considerations that you need to think about when you purchase commercial property is where the property is located. The area should be able to support your business. For example, a veterinarian's office specializing in large farm animals would be better suited to a rural location instead of the middle of a metropolitan area. A computer store would be better suited for a metropolitan area rather than being placed in the middle of vast farmlands.

You have options for handling a construction dispute

Trying to choose the best contractor for a job takes a lot of research that includes vetting out the company's history and checking references. There are times when you might hire a contractor who just doesn't do the job you expected even though he or she had excellent references and a great project history. When this happens, you have a few options that you can consider.

One of the options is to discuss the matter directly with the contractor. A truly reputable contractor will be willing to do what needs to be done to please you. One who isn't so reputable might not be willing to lift a finger to rectify the matter.

Business litigation may be necessary when clients do not pay

As a business owner, you know that the ability to keep the company running and provide for your family relies heavily on the payments you receive from your clients or customers. Because of the importance of their payments, you may understandably feel angry and concerned when those individuals do not meet their financial obligations. Not only does their nonpayment hurt your bottom line, it could have negative impacts on your business's reputation and other aspects as well.

Though you may want to go to any lengths necessary in order to receive the money your clients owe your company, remember that it works in your best interests to remain on the right side of the law.

Arizona contractor sued for failing to perform work

The Arizona attorney general's office has filed a lawsuit alleging a local man violated the Arizona Consumer Fraud Act by taking money for home improvement projects and not showing up to perform the work.

According to the lawsuit, the man targeted owners of newly constructed homes and offered to complete landscaping and other outdoor projects. He took money up front for the work, then showed up for just a few hours and never returned, leaving unfinished work

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