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Legal Concerns for the Entrepreneur,[object Object],By Salene Mazur Kraemer, Esquire, MBA, CTP-D,[object Object],Pittsburgh, PA 15241,[object Object],412.427.7075 phone, 412.221.3658 fax,[object Object],www.mazurkraemer.com,[object Object],salene@mazurkraemer.com,[object Object],1,[object Object],MAZURKRAEMER LAW,[object Object]
Overview,[object Object],A. Getting Started,[object Object],B. Corporate Formation & Formalities,[object Object],C. Hiring Employees or Contractors,[object Object],D. Regulatory Compliance,[object Object],E. Raising Money,[object Object],F. Intellectual Property,[object Object],G. Corporate Counseling,[object Object],H. Contract Drafting & Review,[object Object],I. Product Liability, Warranties, Advertising,[object Object],J. Business Torts,[object Object],K. E-Commerce,[object Object],L. Exit Strategies,[object Object],2,[object Object],MAZURKRAEMER LAW,[object Object]
A. Getting Started,[object Object],1. Leave Current Employment,[object Object],2. Startup, Acquisition ,[object Object],(stock or assets), Franchise,[object Object],3. Business Plan,[object Object],4. Location Selection,[object Object],5. Hiring Professionals,[object Object],6. Choose Business Entity,[object Object],7. Forming the Board,[object Object],3,[object Object],MAZURKRAEMER LAW,[object Object]
Leave Current Employment,[object Object],Covenant Not to Compete  ,[object Object],Trade Secrets,[object Object],Invention Assignment Agreement,[object Object],Misappropriation of Company Resources,[object Object],Non-Solicitation Agreement,[object Object],MAZURKRAEMER LAW,[object Object],4,[object Object]
Location Selection,[object Object],MAZURKRAEMER LAW,[object Object],5,[object Object],[object Object]
Commercial lease
Buy property
Virtual office
Location visibility,[object Object]
Considerations,[object Object],Number of Owners,[object Object],Type of Owners,[object Object],Personal Liability Protection,[object Object],Tax status,[object Object],Governing Agreement,[object Object],Flexibility re: management/governance,[object Object],Flexibility re: profit/loss allocations, as well as cash distribution,[object Object],Securities concerns- additional investors?,[object Object],Liquidation of entity,[object Object],MAZURKRAEMER LAW,[object Object],7,[object Object]
Hiring Professionals,[object Object],Accountant,[object Object],Graphic Design Artist,[object Object],Website developer/hosting,[object Object],IT consultant,[object Object],PR firm/social media ,[object Object],consultant,[object Object],Insurance,[object Object],Banker,[object Object],Lawyer (Corporate, IP, FDA, etc. ),[object Object],Printer,[object Object],Benefits Company,[object Object],MAZURKRAEMER LAW,[object Object],8,[object Object]
B. Corporate Formation Documents,[object Object],Articles or Certification of Incorporation or Formation or Partnership,[object Object],Written Consent of Sole Incorporator,[object Object],Unanimous Consent of Board of Directors,[object Object],Corporate Minute Book,[object Object],Stock Certificates,[object Object],Docketing Statement,[object Object],Application for EIN,[object Object],Name Reservation in State Incorporated and Where Intend to Do Business,[object Object],Fictitious Name Filing,[object Object],Certificate of Authority to Do Business in Other States,[object Object],Publication of Authority to Do Business in State,[object Object],Voting Agreements, ,[object Object],Necessary Tax Forms,[object Object],Shareholders Agreement, Partnership Agreement, Operating Agreement,[object Object],Buy-Sell Agreement,[object Object],9,[object Object],MAZURKRAEMER LAW,[object Object]
C. HR Issues-Hiring Employees & Contractors,[object Object],Employment Agreements,[object Object],Consulting Agreements,[object Object],Covenant Not to Compete,[object Object],Policy/Handbook,[object Object],Discrimination Prevention,[object Object],Pre-employment application/screening ,[object Object],Wrongful discharge v. employee at will,[object Object],Equity compensation,[object Object],10,[object Object],MAZURKRAEMER LAW,[object Object]
Employee v. Independent Contractor,[object Object],TEST  IC- 1) control the outcome of a piece of work and the means and manner of achieving the outcome; 2) Offer services to public at large, not just one business,[object Object],IMP-employer does not have to pay social security or Medicare, unemployment insurance or workers’ comp for employee, no benefits, no retirement,[object Object],Lower paid, lower skilled often considered employees,[object Object],MAZURKRAEMER LAW,[object Object],11,[object Object]
Important Legislation			,[object Object],Civil Rights Act,[object Object],OSHA,[object Object],National Labor Relations Act,[object Object],ADA,[object Object],Age Discrimination,[object Object],Family Medical Leave Act,[object Object],Fair Labor Standards Act,[object Object],EEOC,[object Object],MAZURKRAEMER LAW,[object Object],12,[object Object]
Reduce Litigation Risk,[object Object],Pre-employment recruiting materials,[object Object],Careful interview and screening process,[object Object],Consistent job evaluations during course of employment,[object Object],Have written employment or independent contractor agreements,[object Object],MAZURKRAEMER LAW,[object Object],13,[object Object]
D. Regulatory Compliance,[object Object],Local, state (foreign or domestic), federal level ,[object Object],Zoning approval, permits and licenses,[object Object],Insurance,[object Object],Government,[object Object],14,[object Object],MAZURKRAEMER LAW,[object Object]
E. Raising Money,[object Object],Business plan,[object Object],Private placement memo,[object Object],Stock Purchase Agreement/Subscription Agreement,[object Object],Securities Compliance (both Federal and States),[object Object],Loan agreements (term v. revolver v. secured),[object Object],UCC filings, Security Agreements,[object Object],Guaranty agreements,[object Object],15,[object Object],MAZURKRAEMER LAW,[object Object],SOURCES: ,[object Object],*Private investors (self, friends, family, angel investors),[object Object],*Venture capital financing,[object Object],*Credit (term loan or revolver),[object Object],*Strategic alliances, joint ventures,[object Object],*Loan funds,[object Object],*Issue common stock, preferred stock, bonds,[object Object]
F. Intellectual Property,[object Object],Basic Forms,[object Object],Patents,[object Object],Trademarks,[object Object],Copyright,[object Object],Trade Secret,[object Object],16,[object Object],MAZURKRAEMER LAW,[object Object]
IP Issues Continued,[object Object],Trade Secret Proprietary Information Program,[object Object],Confidentiality or non-disclosure agreements ,[object Object],Non-competition and non-solicitation agreements,[object Object],Invention Assignment Agreement,[object Object], Trademark, Service Marks-brands, logos, packaging or designs that are used  to distinguish its goods and services,[object Object],Registered Internet domain name,[object Object], Copyright for text, graphic, software, audio or film materials, such as manuals or promotional or training materials,[object Object], Licensing Agreements,[object Object],International? ,[object Object],MAZURKRAEMER LAW,[object Object],17,[object Object]
G. Corporate Counseling,[object Object],Board Formation,[object Object],Legally required,[object Object],Selection, number, frequency of meeting, diversified, outside v. interested, compensation,[object Object],Synergy, credibility,[object Object],Fiduciary Duty of Care to corporation and shareholders (BIOTC),[object Object],Duty of Loyalty (no self-dealing, no usurp corp opportunity),[object Object],Duty of Care (“reasonable man” test),[object Object],Business Judgment Rule (disinterested, informed, shifts burden),[object Object],D&O Insurance,[object Object],Indemnity Agreement (officers) ,[object Object],18,[object Object],MAZURKRAEMER LAW,[object Object]
H. Contract Drafting & Review,[object Object],Commercial Property Leases,[object Object],Equipment Leases,[object Object],Agreements of Sale for Property,[object Object],Loan Agreements,[object Object],Sale of Goods (Supply Agreement, Distribution Agreement, Purchase Order),[object Object],Engagement letters,[object Object],Customer Contracts,[object Object],Consignments,[object Object],Management Agreement,[object Object],Requirements and Outputs Contracts,[object Object],19,[object Object],MAZURKRAEMER LAW,[object Object]
Contract Law Basics,[object Object],Basic elements (offer, acceptance, consideration),[object Object],UCC v. Common Law,[object Object],Contract theories (breach of contract, unjust enrichment, promissory estoppel, restitution),[object Object],Oral, written, implied,[object Object],Statute of Frauds (goods over $500, real property, contract longer than 1 years, pre-nup, assumption of debt),[object Object],Remedies,[object Object],MAZURKRAEMER LAW,[object Object],20,[object Object]
Remedies,[object Object],$ or Equitable (specific performance, injunction, recission),[object Object],Expectation,[object Object],Reliance,[object Object],Restitution,[object Object],Consequential  (foreseeable),[object Object],Liquidation,[object Object],Punitive,[object Object],MAZURKRAEMER LAW,[object Object],21,[object Object]
Material Contract Terms,[object Object],Who are the parties?,[object Object],Duties and Obligations,[object Object],Payment Terms,[object Object],Duration,[object Object],Termination,[object Object],Warranties and Representations,[object Object],Indemnification,[object Object],Boilerplate provisions,[object Object],MAZURKRAEMER LAW,[object Object],22,[object Object]
 Boilerplate Provisions ,[object Object],Notice provisions,[object Object],Governing Law,[object Object],Waiver of Jury Trial,[object Object],Amendment,[object Object],Assignment,[object Object],Attorneys’ Fees,[object Object],Litigation v. Arbitration or Mediation,[object Object],MAZURKRAEMER LAW,[object Object],23,[object Object]
Creditors’ Rights in Bankruptcy,[object Object],MAZURKRAEMER LAW,[object Object],24,[object Object]
I. Product Liability, Warranties, Advertising,[object Object],Warranties (express (not puffing), implied warranty of merchantability, implied warranty of fitness for a particular purposes),[object Object],Limitation of Liability, AS IS clauses,[object Object],Products liability for defective products sold in dangerous or defective condition (strict liability, chain of distribution, design defect, warnings),[object Object],False or Misleading Advertising,[object Object],Successor Liability,[object Object],Defenses (comparative fault, assumption of risk),[object Object],25,[object Object],MAZURKRAEMER LAW,[object Object]

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The Liquidating Chapter 11 Power Point (10.16.09)The Liquidating Chapter 11 Power Point (10.16.09)
The Liquidating Chapter 11 Power Point (10.16.09)
 

Legal Concerns of the Entrepreneur