Small Business: Legal
You don't get a tax break on money you borrow – but the interest you pay on your loans is fair game for deduction.
Bryanne Goetz, Orlando
I started a business from home this year. Can I write off the money that was loaned to me to start the company?
Some sales aren't worth winning. If parts of your company are successful and others aren't, it's time to purge.
Sharron Stankiewicz, Ohio
I own three hearing aid businesses, all listed under the same corporate name but located in different areas. Two of them are going bust. Can I get out of my lease and still keep the one successful business running? What could the landlord do if I simply walked away from those leases where the businesses are failing?
Is a court likely to uphold a restrictive noncompete agreement? It depends on where you live.
Ryan H. from Fort Wayne, Ind.
When I started my current job, I signed a noncompete agreement without really reading it. After reading it in full, I discovered that it sounds like they're trying to keep me out of the entire Web design industry, anywhere in the U.S., for two years after leaving. I am looking for a new job right now – should I be worried about this? Would a judge ever uphold such a sweeping contract, in spite of my signature on it?
Sorry, it's legal, and you may even have to pay more than just the rent.
Richard Barker, Aprizona Florist, Covington, Ga.
Our business went south, and as a result we had to break our lease. Less than 30 days later, the landlord rented the space to a new tenant. Six months after that, we were served with papers demanding $12,000, which is the remaining rent on the lease. Is it legal for the landlord to collect rent from both new and old tenants?
How to get capital when you are your partner disagree on the risks.
C. Miranda, Urban Revitalizers, Boston
I am a partner in a small, certified minority business, and have been managing it for the past 10 years. My firm has just won a statewide contract to conduct assessments of real estate throughout the state. It is our first large contract, and it requires some start-up capital. I have applied for several business loans to carry us through until our first pay-down. The problem is that my business partner of 10 years is not willing to sign, saying that she wants to be able to continue to pay the bills if everything fails. I have used all of my credit cards to get us part of the way there, but still need more capital. My credit score is high. Can someone tell me how I can get over this hurdle?
If your company went under, you can salvage some of the losses when you file your taxes.
Shawn Calvert, Kokomo, Ind.
My wife tried a small business and it failed after a short time. We lost about $30,000 on it. What can we write off?
Planning ahead is your best bet for a successful resolution if a business deal turns toxic.
Amy, Wheeling, W.V.
I formed an LLC with two other partners. They are a couple. One owns 33%, the other 34% and I own 33%. We do not have any legal documents drawn up. I want to take the business and get them out. One partner does nothing and still works a full-time job and the other is a control freak making poor choices. This is a new venture, and they funded it with credit cards. The debt is small and I can easily take it over financially, but they will not sell the business to me. The response has been fantastic, and I want to have the business before they ruin it. Do I have any options at all?
If you're going to use copyrighted work within your own, be prepared for legal headaches.
Cynthia Lamb, President of Rhino Entertainment, Bright, Ind.
I own a consulting firm and plan to self-publish a book detailing lessons I've learned. In my book, I quote song lyrics. The U.S. Copyright Office says I must get permission from the songs' copyright holders before using the lyrics, and I've started to do so. But my research suggests the fair use doctrine would let me reprint a percentage of the lyrics without this hassle. Can you help me understand the law in this area?
If you work with outside staffing agencies, both sides have some responsibility for ensuring that your workers are legal.
Sharon Rider, Lake Charles, La.
If a small business needs temporary help and uses a staffing firm to obtain hourly workers, who will be subject to penalties if the workers turn out to be illegal aliens? Is it the small business or the staffing firm?
Want to write off the cost of meals while you're traveling? Here's a rundown on what to deduct, and how.
Donna, Rome, N.Y.
My boss is an electrician and is working 4 hours away from his office. Can all his meals be deducted while away from his home office?
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