Perspectives

When starting a small business, addressing legal considerations early on can help lay a solid foundation and avoid costly mistakes. Here are 10 key things to consider, do, or impliment:

Choose the Right Business Structure

• Decide on the legal entity (e.g., sole proprietorship, partnership, LLC, corporation)
• Consider liability protection, tax implications, and administrative responsibilities

Register Your Business

• Register your business name with your state and/or county
• File necessary paperwork to establish your business legally

Obtain Necessary Licenses and Permits

• Research and apply for local, state, and federal licenses or permits required for your industry
• Esure compliance with zoning laws

Understand Employment Laws

• If hiring employees, comply with wage and hour laws, anti-discrimination laws, and workplace safety requirements
• Have clear employe policies and an employee handbook

Draft and Review Contracts

• Use clear, enforceable contracts with customer, suppliers, and partners
• Include terms addressing payment, termination, liability, and dispute resolution

Protect Intellectual Property

• Trademark your business name and logo if necessary
• Consider copyright protections for original content and patents for inventions

Develop a Risk Management Plan

• Obtain appropriate insurance (e.g., general liability, property, worker’s compensation, errors and omissions)
• Limit liability through indemnity clauses in contracts

Comply with Tax Obligations

• Apply for an Employer Identification Number (EIN) with the IRS
• Understand and file required federal, state, and local taxes, including sales tax if applicable

Establish Clear Financial Practices

• Seperate personal and business finances by opening a business bank account
• Maintain accurate financial records for tax and compliance purposes

Stay Current with Legal and Regulatory Changes

• Monitor laws and regulations affecting your industry
• Parnter with a legal professional or compliance partner to ensure ongoing compliance

By proactively addressing these areas, small businesses can reduce risks, remian complant, and set themselves up for long-term success. To learn more about WFJ’s business consulting services, get connected with one of our attorneys today. 

When a customer files for Chapter 7 bankruptcy, it’s crucial to act swiftly and strategically to protect your company’s financial interests. Below is a practical to-do list for credit managers and finance professionals navigating this complex process.

• Confirm the filing

Verify the bankruptcy filing by obtaining the case number and confirming the court’s jurisdiction.

• Comply with the Automatic Stay

Cease all collection activities immediately to avoid potential penalties for violating the automatic stay.

• Obtain the Petition and Mailing Matrix

Review the bankruptcy petition and mailing matrix to ensure your debt is listed correctly Confirm your company’s mailing address to receive important notices.

• File a Proof of Claim

Submit a timely proof of claim to establish your right to receive any distributions from the debtor’s estate.

• Review Recent Transactions

Examine transactions within the last 90 days for potential preferential payments that may be subject to crawlback.

• Evaluate Fraud Concerns

If you suspect fraud, consider pursuing and adversary proceeding to challenge the discharge of the debt.

• Confirm Lien and Bond Rights

Ensure your lien or bond rights are presereved. These rights may offer additionaly protections, even during bankruptcy.

Take Action Today

Navigating a customer’s bankruptcy requires attention to detail and expert legal guidance. Wagner, Falconer & Judd specializes in protecting creidtor’s rights. Contact us to ensure your business is positioned for the best possible outcome in Chapter 7 cases.

Starting January 1, 2025, New York will become the first state in the coutnry to offer Paid Prenatal Leave, setting a precedent for employment legislation nationwide. This groundbreaking law grants employees 20 hours of paid leave for healthcare services related to pregnancy. These services include physical examinations, medical procedures, monitoring, testing, and discussions with healthcare providers about pregnancy.

Key Details Employers Need to Know:

• Coverage for all Private Employers: Regardless of size, all private employers in New York must comply with this law. Whether your business employs one person or 1,000, Paid Prenatal Leave is mandatory.
• Immediate Eligibility: Employees are entiltled to Paid Prenatal Leave from the moment they are hired, eliminating any waiting periods for eligibility.
• Additional to Sick Leave: Paid Prenatal Leave is in addition to New York’s existing Sick Leave Requirements. Employees are entiltled to 40 or 56 hours of Sick Leave (depending on employer size) plus an additional 20 hours specifically for prenatal care.

What This Means for Employers

This new requirement adds to the already complex framework of employment laws in New York. Employers must adjust their policies, track Paid Prenatal Leave seperately from other leave types, and ensure they remain compliant to avoied potential penalties. The law’s universal application, even for small businesses, means no employer is exempt from these changes.

Partner with WFJ to Stay Ahead

Navigating employment legislation can be challenging, especially with New York setting new precendents.. WFJ’s Compliance Center is here to help. Our team of experienced attorneys and SHRM-certified professionals can guide you in updating your policies, answering your questions, and ensuring compliance with the Paid Prenatal Leave law and other evolving regulations.

Don’t wait until you’re impacted by a new law-contact WFJ today to partner with a legal team dedicated to keeping your business compliant and protected in the face of ever-changing employment laws. 

As 2024 draws to a close, we want to reflect on the critical legal developments of the past year and prepare for the challenges and opportunities ahead. This year has been marked by significant changes across employment law, compliance regulations, and workplace standards. Staying informed is no longer optional-it’s essential to protect your business and foster growth.

Key Legal Updates from 2024

FTC’s Nationwide Non-Compete Ban 

While a Texas federal judge blocked the FTC’s non-compete ban, the regulatory environment remains dynamic. The FTC is likely to appeal, and the state-specific restrictions on non-compete agreements continue to evolve. Employers must tread carefully, especially with the NLRB’s increased focus on these agreements.

DOL Salary Threshold Adjustments

Changes to salary threshold rules have created new challenges for employers. While some salary adjustments may no longer be required, rolling back pay increases could impact employee morale. Employers should remain aligned with current legal standards and future appeals.

OSHA Updates

Enhanced workplace safety standards were introduced, including updated heat illness prevention rules and compliance requirements for indoor workplaces.

State-Specific Legislation

From California’s expanded whistleblower protections to Minnesota’s updates on wage transparency and classification laws, states have been highly active in updating employment regulations. Many of these laws take effect in early 2025, such as Minnesota’s minimum wage increase and job posting pay range requirements.

Preparing for 2025

The new year brings stricter requirements and evolving expectations, such as salary transparency laws in Massachusetts and Vermont, expanded leave protections in Connecticut, and revised minimum wage standards across several states. Employers must remain proactive to avoid penalties and ensure compliance.

Why Partner with WFJ?

At WFJ, we understand that navigating these complex changes can be overwhelming. Our team of experts is here to provide tailored solutions, helping you:

• Monitor regulatory changes and asses their impact on your business.
• Update workplace policies and agreements to align with federal and state laws.
• Foster a compliant and motivated workforce while mitigating risks.

With WFJ as your trusted partner, you’ll stay ahead of the curve in 2025 and beyond. Together, we can safeguard your business, ensuring you remain compliant while building a strong foundation for future success.

Let’s Get Started

Don’t let compliance challenges hold you back. Contact WFJ today to schedule a consultation with our Compliance Center and prepare for a legally secure 2025.

On December 3, 2024, a federal court in Texas issued a nationwide preliminary injunction blocking the enforcement of the Corporate Transparency Act (CTA). The court ruled that the CTA is unconstitutional, meaning businesses are not currently required to comply with the reporting deadlines.

For now, this ruling means that:

• Companies formed before January 1,2024, are not required to file their beneficial ownership information by the general deadline of January 1, 2025.
• Companies formed on or after January 1, 2024, are not required to meet the 90-day reporting deadline after their formation date.

It’s important to note that this is a preliminary injunction. The decision could be appealed to a higher court, and the injunction may be lifted or overruled. At the time of this post, FinCEN-the agency responsible for enforcing the CTA-has not publicly addressed its plans following the court’s decision.

Ongoing Legal Challenges

The Texas case isn’t the only one questioning the constitutionality of the CTA. In Alabama, another federal court also ruled the law unconstitutional but limited the ruling to the plaintiffs in that case. The government has appealed this decision to the Eleventh Circuit Court of Appeals.

The outcome of these cases is uncertain. The Eleventh Circuit could affirm or reverse the Alabama court’s ruling, or it could send the case back to the lower court without deciding on the constitutionality of the law. Whether this happens before the January 1, 2025 deadline is unknown, as is whether any ruling would apply nationally or only to specific parties.

What Should Businesses Do?

Given the legal uncertainty, WFJ recommends that businesses continue preparing to comply with the CTA’s reporting requirements:

• If your company was formed before January 1, 2024, be ready to file your beneficial ownership information by the January 1, 2025, deadline.
• Companies that fail to comply-if the law is ultimately enforced-could face serious penalties, including criminal and civil consequences.

Our team is closely monitoring developments in these cases and any updates from FinCEN. If you have questions about your compliance obligations or how this ruling might impact your business, WFJ is here to help.

Stay informed and protected-reach out to us today for guidance.

Ensuring timely and accurate lien filing is a critical part of securing payments and protecting company revenue. However, with the complexities of state-specific lien laws and strict filing deadlines, managing the lien process internally can be fraught with challenges that put even the most organized teams at risk. Outsourcing lien filing to professionals, particularly legal experts, can provide much-needed relief and strategic advantages.

Here’s when you should consider it-and why partnering with a law firm can safeguard your interests.

The Challenges of In-House Lien Management

Credit professionals face numerous obstacles in managing liens, including:

• Complex and Varied State Laws

Each state has unique lien laws governing what qualifies for a lien, notice requirements, filing deadlines, and the duration of the lien’s validity. Missing a step or misunderstanding a state-specific requirement can invalidate your lien, leaving your company unprotected.

• Strict Deadlines 

Many states have short and unforgiving deadlines for filing preliminary notices, liens, and other associated documents. Balancing these deadlines with other pressing financial duties increases the likelihood of errors.

• High Stakes

An improperly filed lien doesn’t just cost your company money; it can strain relationships with clients and business partners, damaging future opportunities.

• Resource Constraints

Even the largest companies are often stretched thin managing accounts receivable, disputes, and other tasks. Taking on lien filing adds an additional layer of responsibility that can overwhelm internal teams.

Key Benefits of Outsourcing Lien Filing to Legal Professionals

Bringing in a law firm with expertise in lien law can alleviate these pain points and position your company for success. 

• State-specific Expertise

Legal professionals stay up-to-date with state-specific lien requirements and legislative changes, ensuring that filings comply with all laws and regulations.

• Deadline Management

A dedicated legal team will ensure that notices and filings are submitted on time, mitigating the risk of losing lien rights due to missed deadlines.

• Accurate Documentation

Attorneys can handle the meticulous preparation of lien documents, reducing the likelihood of disputes over improper filings.

• Strategic Advisory

Beyond filing liens, legal counsel can advise on how to structure contracts to strengthen lien rights and improve your position in case of disputes or non-payment.

• Improved Efficiency

Outsourcing lien management allows your team to focus on core responsibilities without sacrificing lien protection or compliance.

When to Make the Switch

Consider outsource lien filing if:

• Your company operates in multiple states, each with different lien laws.
• Your team struggles to meet the deadlines associated with preliminary notices and lien filings.
• You’ve experienced errors or invalidation in past lien filings.
• You’re expanding into new markets with unfamiliar lien laws.
• Your team has a high workload, and lien filing is becoming a distraction from core financial tasks.

Why Partner with a Law Firm for Lien Filing?

While some companies may consider lien service providers, partnering with a law firm offers an unparalleled advantage: comprehensive legal protection. The attorneys at Wagner, Falconer & Judd don’t just file liens; they provides advice on how to prevent payment disputes and protect your company’s rights under the law.

At WFJ, we specialize in helping you secure your business through effective lien filing and legal counsel. Our team is experienced in state-specific lien laws and deadlines, ensuring your company is always protected.

Don’t let the complexity of lien filing jeopardize your revenue. Contact us today to learn how we can streamline your lien processes, so you can focus on growing your business with confidence.

Take Action

If you’re ready to reduce risk and maximize efficiency, we’re here to help. Reach out to WFJ to schedule a consultation and take the first step toward stronger lien protection.

Filing a lien is a powerful tool for securing payment, especially in industries with complex credit transactions like construction, manufacturing, and large equipment leasing. However, errors during the lien filing process can invalidate your claim and put your payment at risk. Avoid these common pitfalls with our checklist to keep your lien rights intact.

1. Understand Your State’s Deadlines: Lien laws vary by state, and missing deadlines can void your claim. Familiarize yourself with each state’s specific timeline for filing a Notice of Intent, the lien itself, and any additional notices.
2. Send Preliminary Notices: Many states require you to send preliminary notices before filing a lien. Ensure you send these on time, or your lien claim may be invalid. Even when not required, a preliminary notice can remind customers of payment obligations.
3. Files Against the Correct Party: Identify the property owner and parties in charge of payments. Filing against the wrong party can delay the process or invalidate your lien.
4. Double-Check Contract Details and Amounts: Include accurate information in your lien claim, including contract amounts, dates, and any unauthorized changes. Overstating or misstating your claim amount can raise legal issues, jeopardizing your lien.
5. Prepare Complete Documentation: Gather all supporting documentation, including contacts, change orders, and proof of delivered services or goods. Detailed records not only strengthen your lien but are crucial if your claim goes to court.
6. Avoid DIY Errors-Seek Legal Help for Complex Filings: Liens in specialized industries may require additional steps or filings. Partnering with legal professionals who understand industry specific nuances ensure compliance and strengthen your lien rights.

By following this checklist, credit, and finance professionals can mitigate risks and increase the likelihood of successful lien filings, ultimately protecting your company’s cash flow and ensuring timely payments.