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Also:
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For an in-depth look at business
owners' exit strategies – from a business lawyer's viewpoint – see Phil
Glasscock's Continuing Legal Education outline on
Business Succession
Planning. |
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Here are some practical tips – some that you may
not have considered – for maximizing the utility and safety of email
communication:
Whenever I see a business owner sending emails with
just their first and last names and no business name, I cringe, knowing that
those emails could be used in litigation to strengthen an argument that the
sender is doing business personally, not as a separate legal entity. Such a
distinction could allow a plaintiff to look beyond your business assets and make
a claim against your personal assets as well.
What’s the big deal? The big deal is that to
get the protection of having a corporation, limited liability company or similar
entity, you must do business as that entity and not personally. Using
your personal name in business communication and documentation but not
including the full name of your company amounts to doing business personally and
not as your legal entity.
What’s “doing business personally”? Doing
business personally isn’t limited to using just your first and/or last name; it
also could mean that you are using the name of your business but leaving off the
entity reference (e.g., “LLC” or “Inc.”). If you limit the identification of
your company to a simple trade name (such as “Foster Licensing” instead of
“Foster Licensing, LLC,” or “Sahuaro Ventures” instead of “Sahuaro Ventures,
Inc.”), you are failing to give proper notice to a business prospect, customer,
vendor or – if it comes to that – a judge or jury that your business is
incorporated or operating as an LLC.
How do I fix it? If you have a corporation
or LLC, always use your full corporate or business name, including “Inc.” or
“LLC,” as appropriate. Put your full business name on everything you do related
to the business, including emails, contracts, invoices, letterhead, business
cards, websites and business social media. If you use your name in a contract or
other document, also include your title (e.g., CEO, Member, etc.). Following are
some examples:
|
Where |
Business Name |
Right Way |
Wrong Way |
| Business
Card |
Foster &
Sons, LLC |
Foster &
Sons, LLC
Jay Foster, President |
Foster &
Sons
Jay Foster, President |
| Copyright
Notice |
ACME, Inc. |
Copyright
2011 ACME, Inc. |
Copyright
2011 ACME |
| Emails |
Software
Plus, LLC |
Software
Plus, LLC
From Jim Smith, VP |
From Jim
Smith |
| Contract |
ABS
Contracting, Inc. |
ABS
Contracting, Inc.
By _______________
John Doe, Manager |
By
____________
John Doe, Manager |
What if I am in business but don’t have a
corporation or LLC? In our litigious society, doing business without the
liability protection and, in many cases, the tax advantages of a separate legal
entity is, in most cases, simply foolhardy. Seek professional advice now from an
experienced business attorney who can help you reduce needless risk to you and
your family.
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