Friday, August 26, 2011

Business Law - The World's Gone E-Mad

It has been researched that around 50% of businesses in the United Kingdom now have a networked system and access to shared files and information. As well as this, a huge chuck of businesses that have a website to advertise their goods and services take payments online. It is a brilliant turn for IT and telecoms industry, and therefore should result in great prospects for businesses themselves as marketing and advertising is increasing greatly. However there is always a downfall. The enhancement in efficiency, increase in service levels and decreasing in costs may amount to nothing if the business does not have the right contracts or procedures in place to then go on and protect itself.
If company employees have access to emails, then a company should make a company email and internet policy that will be known to all staff and potentially included in their employment contracts to reinforce the provisions of the policy. Network systems can be quite expensive, so it is important to make sure that there are the appropriate contractual agreements put in action to protect the company's interests. It will need to be discussed within the company about software licenses as you may be liable for new license fees if more and more employees gain access to the software. Data protection will also be an issue if the company has not ensured sufficient secure storage of personal and client records has been adopted. If the company has a website, even a brochure advertising the website will need to meet all the legal requirements, such as including a site disclaimer which will cover the company against any liability. It is also important to provide clearly on the website the companies data protection policy, and terms and conditions as well as returning goods policy.

Saturday, August 6, 2011

Tax Benefits of 'C' Corporations - Business Failure

"C" Corporation
The "C" in C corporation has a few legal ramifications, but it is primary a designation for tax purposes. Put in layman's terms, the designation simply means the corporation will act as its own tax entity. To become a shareholder in the corporation, you must exchange property, cash or services in exchange for stock.
The Internet Revenue Code sets out the law on tax and it contains a few juicy provisions for corporations. In the case of a business failure, the code delineates some favorable tax write-offs for the investment you made in stock.
Taking A Loss