202107.30
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WHAT IS A COPYRIGHT?

There is much confusion around what people can trademark or copyright.  A copyright is a type of legal protection given to content creators and artists. When a person creates a story, a work of art, or a piece of software, the copyright provides legal ownership of the work. The creator receives exclusive rights to the use and distribution of the work for a set amount of time. What Is Eligible for a Copyright? The following works are eligible for a copyright: All literary works: These include short stories, poems, newspaper articles, blogs, plays, and reference materials. Advertisements Architecture Artistic works: These include drawings, paintings, pictures, and sculptures. Technical Drawings Films Television shows Podcasts Choreography Musical compositions Concerts and other live performances Computer software Computer hardware  For any of these works to qualify for a copyright, they must meet what the law describes as “some minimal degree of creativity.”  What Is Not Eligible for Copyright Claim? The primary areas where someone cannot claim copyright status are: Facts Ideas Methods of Operation Systems Which Protections Does a Copyright Give? Think of a copyright as your ownership of something that you’ve created. Whether you take a picture, write a short story, or compose a piece of music, it’s your work. A copyright gives you legal protection over that creation. As the copyright owner, only you have the right to: Reproduce the Work: You can make copies of the content you created. You may distribute your work as you see fit. Create Other Works Based on the Original Work: For example, you may want to combine a series of blog posts into a book. Display the Work in Public: When you create art, you may want others to look at it. Your painting, statue, or installation is yours to show wherever you like.  Ability to sell copies of your work: You can profit from your copyrighted idea by selling it.  Perform the Work in Public: When you write music, a book, a play, or anything else you can display in public, you have the right to do so. For example, you have the right to play your own music at a concert.  You as the content creator with a copyright hold these rights for a period of time. You cannot lose them unless you legally give them up. You own the rights to your works in the same way that you own your house or car. Nobody else can use any of it without your express permission. How Long Does a Copyright Last? The time limit for a copyright depends on the date of the work. Anything created after January 1, 1978, has a copyright for the life of the author plus 70 years. That means that a person who dies tomorrow would have a copyright on their work for 70 years and one day. Does a Person Have to Register a Copyright? No, creating the work automatically gives a person a copyright. Registration of the copyright is voluntary. A person may register their work at any point during the timeframe when their work is eligible for copyright. Still, official registration lets the creator:  Have a public record of their copyright claim File an infringement lawsuit in court For more information on how to legally start and grow your business please visit my website at www.BaglaLaw.com Disclaimer:  This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

202107.26
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CHOOSING THE RIGHT STATE TO REGISTER YOUR BUSINESS IN 2021

The real question is: “Which State do you want to get sued in?” Embarking on a new business venture can be both challenging and rewarding. One of the biggest challenges a new business owner faces is choosing a state of incorporation or the state in which their business will be registered. Choosing the state of incorporation is a largely misunderstood aspect of starting a new business, creating confusion for even the brightest of business owners. A business owner can opt to register their business in the same state the business operates in, or they can register the business in a different state. States with lower corporate income tax rates like Delaware, Nevada and Wyoming are attractive options for many new business owners seeking to limit tax exposure of their new ventures. If the goals and needs of the business are not taken into consideration, however, incorporating the business out of state can have the exact opposite result. Delaware, Nevada and Wyoming may be considered business-friendly states, but none present a one-size-fits-all solution to choosing the right state of incorporation for your business. Each state varies in terms of fees and taxes, meaning the best option for a large public company may be completely different for a small business.  Delaware, Nevada and Wyoming may be considered business-friendly states, but none present a one-size-fits-all solution to choosing the right state of incorporation for your business. Below is a brief examination of each state that can help you select the state of incorporation that is right for your business. DELAWARE Many corporations register in Delaware because of the state’s lucrative tax codes and corporate-friendly laws. Investment bankers often require publicly traded companies to incorporate in Delaware to comply with some securities law requirements. Most Fortune 500 companies are incorporated in Delaware, largely because of the state’s premium justice system. Delaware’s separate Court of Chancery provides businesses with faster resolutions and more predictable outcomes to business disputes. The Court of Chancery appoints judges with business backgrounds to rule on these cases involving commercial transactions without a jury. Delaware attracts both large and small corporations because of the well-developed body of case law for corporations, reaching back over hundred years and covering a wide breadth of matters regarding shareholders, management, mergers and acquisitions, and more.  The state has no income tax and additionally, Delaware does not charge corporate taxes from corporations which are incorporated in Delaware but do not conduct business in the state. NEVADA Nevada is also a popular state of incorporation.  It is important to remember that small-business owners must register as a foreign registrant in their own state when they incorporate their businesses out of state. These duplicate filings can result in increased one-time formation fees and an annual compliance burden. With the high cost to file in Nevada, this can cause large expenditures for small businesses. Nevada makes up for its high administrative costs by being a tax haven for corporations. Nevada does not levy a franchise or income tax on businesses in the state. WYOMING Many companies incorporate in Wyoming because the administrative costs are generally lower than in Delaware or Nevada. Unlike many states, Wyoming does not require licensing or filing fees to be paid to complete the process of incorporation. Wyoming also has personal asset protection laws in place to protect business owners and company officers from losing assets like cars and houses in the event of litigation. The state also takes data protection laws seriously, requiring registered agents to maintain private data for businesses rather than have sensitive data entered into a public database. To conclude, forming a corporation in a different state won’t necessarily save a business any money in the long run. Incorporating out of state will usually do little for a business unless it conducts its operations in that state. It may sometimes be more beneficial for a business to incorporate out of state; however, it will always cost more upfront to do so. Incorporating in a tax-friendly state is not an effective strategy for reducing taxes unless the business plans to operate in that state. In general, a business will be subject to the tax laws of whatever state it operates in. Taking all of this into consideration, Delaware, Nevada or Wyoming may not necessarily be the best place to incorporate your business.  Choosing where you incorporate may depend more on the structure of your business and your long-term goals.  You can incorporate your business, find contracts, and download a free COVID-19 liability waiver form from www.GoLegalYourself.com  For more information on how to legally start and grow your business please visit my website at www.golegalyourself.com Disclaimer:  This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

202107.23
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WHEN IS THE RIGHT TIME TO INCORPORATE?

Have you been thinking about starting a business or incorporating a business or an existing sole proprietorship?  If so, you might be wondering what’s the best time to incorporate.  Should you try to squeeze it in before the end of the year or wait until next year? Below are three tips for determining when is the best time to incorporate your business: LIABILITY CONCERNS: If your business is involved in an industry or activities with a lot of liability, then you should incorporate as soon as possible in order to separate your personal finances from your business.  In this case, there’s no reason to wait and expose yourself to anymore liability than you need to.  TAX BENEFITS: If your tax advisor has told you that you can significantly lower your taxes by incorporating, you will want to get your incorporation paperwork in as quickly as possible.  Of course, bear in mind that your corporation’s start date is not retroactive.  Any tax benefits you might receive from incorporating begin on the date you incorporate.  This means you’ll typically have to file two business income tax returns for the year, the first for the months that you operated as a sole proprietor, and the other tax filing for the months after you incorporated.  INCORPORATE JANUARY 1ST: For small business owners that don’t have significant liability concerns, January 1 is the most logical start date since it eases the paperwork burden.  You can start fresh in the new year as a corporation.  Additionally, you don’t have to worry about reporting taxes as two different entities during the year.  Because of this, January is the busiest time of the year for processing incorporation applications at many Secretary of State offices.  In some cases, it can take up to 40 to 60 days to bring a corporation into existence after you submit your filing documents with the state office.  Filing your paperwork with the help of an attorney, usually the attorney can get your paperwork back faster than if you file by yourself.  Remember: if you have a pressing need to incorporate due to liability concerns or you want to take advantage of significant tax benefits, then you should incorporate your business as soon as possible. For more information on how to legally protect your business please buy a copy of my bestselling book: ‘Go Legal Yourself’ on Amazon or visit my website at www.golegalyourself.com Disclaimer:  This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

202107.19
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SERVICE DOGS AND WHAT YOU NEED TO KNOW

Many people with disabilities use a service animal in order to fully participate in everyday life.  Dogs can be trained to perform many important tasks to assist people with disabilities, such as providing stability for a person who has difficulty walking, picking up items, preventing a child with autism from wandering away, or altering a person who has hearing loss when someone is approaching from behind. The Department of Justice continues to receive many questions about how the Americans with Disabilities Act (ADA) applies to service animals.  The ADA requires State and local government agencies, businesses, and non-profit organizations (“covered entities”) that provide goods or services to the public to make “reasonable modifications” in their policies, practices, or procedures when necessary to accommodate people with disabilities.  The ADA defines a service animal as a dog that has been individually trained to do work or perform tasks for an individual with a disability.  The task performed by the dog must be directly related to the person’s disability. Here are some frequently asked questions pertaining to service dogs: Q: Does the ADA require service animals to be professionally trained? A: No.  People with disabilities have the right to train the dog themselves and are not required to use a professional service dog training program. Q: What questions can a covered entity ask to determine if a dog is a service animal? A: In situations where it is not obvious that the dog is a service animal, staff may ask only two specific questions: Is the dog a service animal required because of a disability? What work or task has the dog been trained to perform? Staff are not allowed to request any documentation for the dog, require the dog demonstrate its task, or inquire about the nature of the person’s disability.  Q: Do service animals have to wear a vest or patch or special harness identifying them as service animals? A: No.  The ADA does not require service animals to wear a vest, ID tag, or specific harness. Q: Does the ADA require that service animals be certified as service animals? A: No.  Covered entities may not require documentation, such as proof that the animal has been certified, trained, or licensed as a service animal, as a condition for entry. Q: Can service animals be any breed of dog? A: Yes.  The ADA does not restrict the type of dog breeds that can be service animals. Q: Can individuals with disabilities be refused access to a facility based solely on the breed of their service animal? A: No.  A Service animal may not be excluded based on assumptions or stereotypes about the animal’s breed or how the animal might behave.  However, if a particular service animal behaves in a way that poses a direct threat to the health or safety of others, has a history of such behavior, or is not under the control of the handler, that animal may be excluded. Q: Can a person bring a service animal with them as they go through a salad bar or other self-service food lines? A: Yes.  Service animals must be allowed to accompany their handlers to and through self-service food lines.  Similarly, service animals may not be prohibited from communal food preparation areas, such as are commonly found in shelters or dormitories.  Q: Can hotels assign designated rooms for guests with service animals, out of consideration for other guests? A: No.  A guest with a disability who uses a service animal must be provided the same opportunity to reserve any available room at the hotel as other guests without disabilities.  They may not be restricted to pet friendly rooms. Q: Can hotels charge a cleaning fee for guests who have service dogs? A: No.  Hotels are not permitted to charge guests for cleaning the hair or dander shed by a service animal.  However, if a guest’s service animal causes damages to a guest room, a hotel is permitted to charge the same fee for damages as charged to other guests. Q: When can service animals be excluded? A: The ADA does not require covered entities to modify policies, practices, or procedures if it would “fundamentally alter” the nature of the goods, services, programs, or activities provided to the public.  Nor does it overrule legitimate safety requirements. If someone believes that they have been illegally denied access or service because they use service animals, they may file a complaint with the U.S. Department of Justice.  Individuals also have the right to file a private lawsuit in Federal court charging the entity with discrimination under the ADA. Disclaimer:  This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

202107.16
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HELPING YOUR KID START A LEGAL BUSINESS

Lemonade stands and lawn mowing are popular ways for kids to earn pocket change, but could they get in legal trouble for their entrepreneurial activities?  Kids just want to be kids, but kids also want to be grown-ups.  That’s why letting kids have a neighborhood lemonade stand, yard sales or lawn mowing businesses is a great way for them to learn responsibility and the value of a dollar.  However, child-run businesses can sometimes run into problems if they are not legally compliant with the local laws.  Cities, counties and states have laws that require businesses to secure permits and licenses to operate.  Those rules can extent to just about every business, including those owned by a child.  Having a business is a great way for children to focus their energy and efforts on something positive and learning from a young age what entrepreneurial means.  An increasing number of states and communities have started to make it easier for young entrepreneurs to make money, but in many communities, children and teens need to secure the right paperwork to lawfully run their businesses. It is important to note that a business is a business, no matter the age of the person in charge.  Businesses must adhere to certain legal requirements, and parents must understand these requirements to make sure their kids’ businesses are legal.  In addition to completing paperwork, such as obtaining a permit, they may have to pay taxes on the money the business earns.  GETTING YOUR KID’S BUSINESS LEGAL The first step is to search for more information on the website of the city and county where the business will be located.  It’s important to make sure your kid’s business is up to code because anyone can decide to report the business to the authorities.  City and county officials in the jurisdiction where the business is located can outline the requirements, explain penalties for noncompliance and provide the proper paperwork to get the process rolling.  You might be asking yourself, “Why go through all of this if it’s just a lemonade stand?  What harm could be done?”  In some cases, neighbors may feel inconvenienced because customers lining up for lemonade could be blocking driveways or adding more noise or traffic to their usually quite residential street.  In addition, competitors have snitched on kid-owned businesses.  A landscaping company, for instance, could report a teen-run lawn mowing business for noncompliance to weed out cheaper competition.  Yes folks, this actually happened! It’s important to be aware of the legal risks and liabilities if your child’s business is not legally compliant.  Kids who run their businesses without the correct permits or licenses can face closure and other penalties, including but not limited to fines.  Furthermore, a run-in with regulators is almost never a fun experience, especially for a young entrepreneur who is dreaming big.  KID OWNED BUSINESSES Here are some fun business ideas that your kids can start explore: Lemonade Stand Mow Lawns Academic Tutor Artist Baby Sitter Baker Candy Maker Dog Walker Actor Podcaster Author Clothing designer IT Services You’ll agree that there is so much potential for your kid to make money, and the best time to learn valuable business lessons coupled with hands-on experience is now.  Therefore, encourage your young entrepreneur to start any of these kid businesses that make money with the right permits and licenses.  You will have given your child a head start in life. You can incorporate your business, find contracts, and download free resources from www.GoLegalYourself.com  For more information on how to legally start and grow your business please visit my website at www.golegalyourself.com Disclaimer:  This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

202107.15
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BUSINESS CONTRACTS POST COVID-19

Small business owners affected by COVID-19 know all too well the importance of written agreements in these uncertain times.  What gets included, and what doesn’t, can make or break a small business when the unexpected happens.  There are sever strategies you might consider to reduce uncertainty when drafting your own contracts post pandemic.  1.WHAT SHOULD BE INCLUDED IN YOUR BUSINESS CONTRACTS POST COVID-19? First, evaluate your past contracts to make sure the clauses or provisions that don’t work so well or left your business exposed to unnecessary losses or risks are amended or removed. Second, consider adding a ‘force majeure” clause (which is explained below) to your contracts going forward.  A force majeure clause is a provision in your contract that protects your business from unforeseen issues, like natural disasters that can make it extremely difficult or even impossible to fulfill your contractual promises.  The force majeure provision would allow you to back out of a contractual obligation should an extreme and unforeseeable event prevent your from fulfilling your end of the deal.  In a post COVID-19 world, you may want to include a force majeure clause that specifically includes issues like pandemics or shutdowns related to the pandemic in your future contracts. Third, you might consider including an arbitration clause in your future agreements.  If you had an issue with a contract and the courts were to shut down again, you could resolve that issue virtually with an arbitrator.  Otherwise, you may be stuck waiting for the courts to open in order to resolve a pressing dispute. Finally, it is really important to get all your agreements in writing.  Don’t rely on verbal agreements and a handshake to seal a deal.  If it matters to you, then put it in writing and make sure that everyone signing the contract knows what’s in it and actually understands it. WHAT ARE SOME CONTRACTUAL DEFENSES YOU CAN USE? The COVID-19 pandemic has disrupted and will continue to disrupt global, national and local commerce.  Businesses in every industry have experienced, and will continue to experience, significant challenges to their ability to meet or enforce contractual obligations.  Contractual defenses fall into three primary categories: Impossibility, Frustration of Purpose, and Force Majeure.                                           1.    Impossibility The common law often recognizes a defense of impossibility.  A party should not be held liable for breaching a contract that they could not perform.  For example, hiring Sting to perform but before the performance, Sting dies, making the contract impossible to perform.  Some of the government orders surrounding COVID-19 may in fact render performance impossible.                                          2. Frustration of Purpose Some courts also recognize a doctrine called “frustration of purpose” which is similar to the impossibility defense.  Under this doctrine, performance is excused when a supervening event fundamentally changes the nature of a contract and makes one party’s performance worthless to the other.  For example, if a contract called for the cleaning of the theater after Sting had performed, the cancellation of the performance frustrated the purpose of the contract.  The contract can still be performed but the purpose has been frustrated making cleaning a wasted effort.                                        3.  Force Majeure Clause Unlike the preceding defenses, which arise under common law and potentially apply without regard to the language of the   contract, the defense of force majeure is based on a contractual provision.  A force majeure clause excuses nonperformance when events beyond the control of the parties prevent performance.  Force majeure clauses vary in their specific language, but typically list such events as acts of God, extreme weather events, riot, war or invasion, government or regulatory action including strikes, terrorism, or the imposition of an embargo.  It is less common to see force majeure clauses that expressly contemplate a global health emergency, pandemic, or epidemic as a force majeure event. Due to coronavirus impact, companies need to evaluate whether their contractual performance has been impacted by COVID-19 and the governmental response to the pandemic.  If the parties cannot negotiate a mutually acceptable “pause button” postponing performance, then companies should evaluate whether there are defenses to performance which will reduce or eliminate liability for breath. CAN I USE LIABILITY WAIVERS POST COVID-19? Last month, I covered COVID-19 liability waivers and provided a free form for your use.  Some states have granted lability protection from COVID-19 lawsuits for businesses.  If you are going to use a liability waiver for your business, you may want to check that the terms are clear, unambiguous, and fair.  The other party needs to understand what they’re agreeing to when they sign it.  A liability waiver will not necessarily protect your business from intentional, reckless, or grossly negligent conduct, so you may want to ensure that your business abides by local guidelines. You might also check that your business carries proper insurance.  You may want to consider, depending on the nature of your business, rent guarantee, business interruption, or business renter policies. You can find contracts for your business and may download a free liability waiver form from www.GoLegalYourself.com For more information on how to legally start and grow your business please visit my website at www.golegalyourself.com Disclaimer:  This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.