Dan L. Wyde is a lawyer that was hired as an assistant district attorney right out of law school. To gain experience, he moved up to prosecuting felonies that included aggravated assault, robberies and murder. Wyde’s undergraduate education in finance and tax accounting served him well as he handled white-color criminal prosecutions for several Fortune 500 companies. He was appointed as a judge and handled Class A and B misdemeanors. He later resigned from the bench and ran for District Attorney, but was unsuccessful in his bid for that office. Wyde started a private law practice, Wyde & Associates, LLC, a commercial litigation, family law, state election law, federal election law and criminal defense firm. Wyde offers these ten “Must Do” legal commandments for every business, from sole proprietorships to multi-national corporations.
Dan L. Wyde
(Photo courtesy of Dan L. Wyde)
- Keep your personal assets and liabilities separate from your business assets and liabilities. Do this, or risk your personal assets having judgments filed against them. Remember the billionaire whose business went bankrupt? He kept his billion and only lost a business that was bankrupt.
- Put all business assets and liabilities into a limited liability company, Sub-chapter S company or corporation.
- Keep every receipt. You have the burden of proof with the IRS to prove you paid the correct amount of taxes. When the IRS comes calling, the way to send them on their way is to paper them to death. If you have all your receipts, then you probably can prove you paid the correct amount in taxes.
- Never enter into any agreement without it being reduced to writing. A $300 contract will save you thousands of dollars in future litigation costs and attorney’s fees.
- In every written agreement there should be a legal venue provision and mandatory binding arbitration clauses. These two provisions will keep you out of court and away from judges who may know the opposing counsel better than your attorney.
- Avoid litigation at all costs, unless you just want to transfer your wealth to an attorney.
- Hire a bookkeeper or accountant to collect revenues, pay expenses and keep track of your money.
- Never give anyone signature authority to your bank accounts. Do I really need to cite an example?
- Learn to accurately estimate fees for services or products to cover all costs, including taxes and profit. If you’re not making a profit, you’re losing money!
- Do not die without a will. Just ask Howard Hughes.
This article was written by Robin D. Everson of Examiner.com for CBS Small Business Pulse.