New Laws for Small Businesses in 2022
From salary and benefits, to the hiring process, to non-compete agreements, an array of new state legislation that affects small businesses in one way or another has taken effect as of the first of the new year, 2022.
The legislation focused non-compete agreements (SB 6
When is the Best Time to Start a Business?
During the pandemic there were over 400,000 new businesses formed, the most since 2007. This outpaced the number of businesses which closed during the pandemic.
We have seen a number of businesses which were formed over the past year by well-meaning and cost-conscious entrepreneurs. These new ventures – both corporations and limited liability companies – frequently overlook some critical elements of a new business. In fact, the first question to ask is whether you should organize as a small corporation or a limited liability company. There are tax consequences and managment questions that should be considered in making the choice.
George Bellas advises on E-Commerce
There is no doubt that e-commerce sales have grown tremendously over the last 20-plus years. That is in part because online purchases are taxed differently than in person sales, and small businesses have noticed the advantages of this system.
The setup is quite simple: a small business may house their servers or warehouse their goods in one state, all while shipping their products to the other 49 states. It is important to know that small businesses are not required to collect sales tax in a state in which they have no physical presence. Until recently, small business owners could expand their consumer base across the country largely without ever collecting a penny in sales tax. This approach yields more clients, more sales, and more revenue. However, as the old cliché goes: “More money, more problems.” In this case, it’s “more money, more tax problems.”
Illinois Freedom to Work Act
Illinois Employers who want to protect their business and trade secrets by using restrictive employment contracts will find new hoops to jump through. The enforcement of non-compete and non-solicit agreements, designed to erect roadblocks to prevent former employees from gaining an unfair advantage due to their proprietary knowledge of your business or relationships with your customers, has always been tricky. But a recent law will make it more complicated.
An amendment to the Illinois Freedom to Work Act that will take effect on January 1, 2022, will create new hurdles for business owners hoping to prevent employees who have left on frosty terms from exploiting their knowledge of customer contacts, pricing and other trade secrets that could enable them to take shortcuts to parity as your adversary.
Wills Can Be Signed Electronically
Prior to the COVID-19 pandemic, wills needed to be signed in person and witnesses (including notaries) needed to be on hand to see the will creator’s actually sign the will.
When the pandemic got underway, Illinois Governor Pritzker signed an Emergency Order declaring that for health and safety related reasons, wills could be signed electronically and that notaries public and other witnesses could view the signing from afar, provided they had a dependable audio and video connection.
Attorneys Misty Cygan and Geo Bellas can help your get business off to a good start.
We’ve run a series of posts recently about the steps involved in launching a business. These have covered issues like deciding what type of business you want to start and what your business model will be; putting together a business plan and identifying sources of capital investment; and naming and registering your business.
This final post will flesh out how forging a beneficial relationship with a law firm that delivers services in a punctual, professional and affordable manner is key to the endgame of getting started with your new venture.
Illinois Cannabis Business Market
Licenses for a legal cannabis business have been a hot topic lately, and now the the Illinois Supreme Court has made its first ruling related to the byzantine process of obtaining a license for a legalized cannabis business in the state, and it seems likely to be the first of many.
The legislative effort to limit the number of licenses the state issues drives up the value of said licenses to the point where it almost seems to bait those who don’t win the competitions to get one, and who sometimes end up angry and confused as to why.
COVID Rules for Residential Evictions
Finally, some clarity to the situation by the source least expected – the U.S. Supreme Court (“SCOTUS”). It has been a tortured road for Landlords during the COVID-19 Pandemic as the story is told in this blog. Basically, SCOTUS ruled that the eviction moratorium mandated by the CDC exceeded it’s authority under the law. The justices divided along party lines, with the court’s three liberal justices dissenting from the unsigned eight-page decision. Landlords are now allowed to start evicting millions of Americans who are behind on rent because of the Pandemic.
Considerations for Starting a Small Business
Recently, we ran a post What to consider when Starting a Small Business, Part One about some of the early steps in starting a small business—deciding you’re ready, figuring out what type of business you want to start, surveying your competitors, and figuring out the optimal business model.
At that point, it’s time to get down to the proverbial brass tacks and put together a business plan, which really doesn’t need to be more than one page long unless you’re going to apply for a loan from a bank (in which case you should find out what the lending institution requires).
Are you thinking about starting a small business?
It can be an exciting and challenging endeavor, although it’s more likely to succeed if you plan ahead, take it step by step, and surround yourself with trusted, experienced advisers. Of course, such an important endeavor – not to mention a life alternating event – requires hard work, ingenuity and more than a little legal advice. You can start by going to our webpage on What to Ask When Staring a Business.
Keep in mind that there might never be an absolutely perfect time to start your own business – so for starters you need to take stock of your mental state and make sure you’re as ready as you will ever feel.
