Smithfield Crossing Law Blog

Are you going to be onstage next year as a result of your Pre-Paid Legal business? How are you going to get there…. Read on for your roadmap to convention 2009.

As a fellow Pre-paid legal associate I have been to the Las Vegas Leadership Summit twice. Besides the inspirational stories and trainings there is also a time where they parade the top money earners in Pre-paid legal across the stage. At the last leadership summit I attended they handed out a million dollars in cash spread out over hundreds of fellow associates. How did these people have so much success in Pre-paid legal?

Pre-Paid Legal Services as you know teaches people to plug into a highly duplicatable system. Their system is designed to be easy to do. They train that anybody can do it and all you have to do is plug into their training and events. The events are VERY important to Pre-paid legal, if you want to be considered a core associate you have to go to all the events nationally and locally. Don’t get me wrong, the events and trainings are good and I made a lot of friends as a result, but as far as making MONEY, the training I was offered was not that effective. Here is what I mean…

The MINDSET of 99 percent of associates including myself, started a Pre-paid legal business to make MONEY and change our lives. I desired to have a part-time business that produced a full-time income. I needed MONEY.

That is the story of the vast majority of associates.

The roadmap to success that Pre-paid legal teaches is broken down into a few activities. They consist of making a list of your friends and family and following up with them using 3-way calls with your upline. I was also taught to get on autoship and hand out two DVD’s a day. How did I do this? Everyday at work, I would leave on my 1 hr. lunch break and go to my local mall and attempt to prospect and hand out business cards and DVD’s. I only had about 25 mins. to hand out 2 DVD’s and hopefully get a prospect to leave me their name and phone number.

Doing this wasn’t easy and took a lot of guts to get out there and prospect this way.
Next, I was taught the importance of promoting to events, setting PBR’s (Private Business Receptions) and inviting guests. I would invite as many prospects as I could to come out to the events as my guest. How many do you think attended? Not Many!

How many do you think watched my DVD or read my company’s magazine? Not Many! I remember hearing one of the top money earners in Pre-paid say that on average you have to get 10 DVD’s handed out in order to get one person to watch it.

This was very FRUSTRATING to me because I only had so much time and MARKETING the way I was trained was not bringing results like I had hoped.

I was spending more money than I was bringing in on autoship, weekly briefings, gas, auto, cell phone, business cards, etc. My ship was SINKING fast!

Finally, reluctantly I turned to the final training technique that Pre-paid legal teaches and that was to contact lead companies, buy business opportunity leads and start cold calling them. I started off slow but I faced my fears anyway and later became pretty efficient on the phone. However, I still could not recruit fast enough and the people who did join me in business would not DUPLICATE. I ended up spending HUNDREDS of dollars buying leads.

After a year and a half of activity and busting my butt working Pre-paid legals roadmap to success I was nowhere close to my financial goal.

I underwent a period of SOUL searching and decided I had to do things differently or close up shop.

I remember thinking why was it that all those people were able to march on stage and have success using Pre-paid legal’s roadmap? I also felt if I was working just as hard why wasn’t I having the same results?

The answer was simple and it all boiled down to the way I was MARKETING. The Pre-paid legal roadmap is UNTARGETED prospecting. It is based on numbers and the “let’s throw mud at the wall and see what sticks mentality.” Do you think other small businesses MARKET this way? Do you think not targeting your market is the right way to go? The answer of course is NO.

The roadmap that will take you to success in Pre-Paid legal much easier has always been inside you. It is building YOU,Inc. first before even mentioning Pre-paid legal to your prospects. It is in using technology like the Internet to brand yourself and attract people to YOU.

My roadmap to success in Pre-paid legal online is to first offer people a system and a coach (ME) that will TEACH and GUIDE them to learning how to use technology to attract prospects to them. I consult all of my prospects either through email or by phone and GAMEPLAN.

As the relationship builds I share the Pre-paid legal service and sell it to them. I want them to see the value. I don’t even mention the business opp. yet, I get a customer. It’s out of my customers that I get referrals and NOW I ask them if they would like to make money as well. Do you see the POWER in marketing this way?

Let your prospects try the service and get sold on it before offering your business opportunity. By now you have built TRUST, RESPECT, and REPOIRE. You are also in a perfect position to RECRUIT!.

This roadmap will guarantee multiple streams of income, cash in your pocket and highly targeted recruits into your Pre-paid legal business.

I look forward to seeing you all on stage at the next Pre-paid legal convention

Your home business career should start with basic legal knowledge about business matters that can commonly come up. Here are a few common terms, ideas and thoughts that someone starting a home business career should know.

Common discussions during a home business career are whether to become a corporation, an LLC, a sole proprietorship or a partnership. The biggest plus, as understood by many of being a corporation, is the idea that a corporation will protect the owner from personal liability.

The reality is that the creation of a corporation as part of someones home business career can protect the entrepreneur from personal liability.

Referred to as a corporate veil, it protects individuals involved in the business from having creditors, customers and others attack their personal assets should a lawsuit be filed against the corporation. It is not enough, however, for the venture to be named a corporation.

The home business founder has to have a corporate feel in his or her career, with meetings of the board of directors, minutes and note taking and publishing, as well as a corporate checking account and perhaps credit cards in the name of the corporation.

Meaning keeping excellent records and a well organized system so they can be easily analyzed and found quickly with ease. Someone whose career involves a home business and who is thinking about creating a corporation should seek the advice of an attorney who has experience with others in your same field.

Registering a company name is important to a home business career and generally means contact with the office of the secretary of state. Business licenses and permit regulations vary considerably from municipality to municipality and from state to state.

The advantages of having a business attorney to help with a home business career are that the attorney will keep abreast of the many changes that occur in the realm of business licenses, corporate and tax issues, the advantages and disadvantages of sole proprietorships, partnership and the various types of incorporation, as well as the continuous changes that are in zoning restrictions and requirements for business licensing.

When it comes time for acquiring a business license for that home business career it might be as simple as a stop at the city clerk’s office and a $20 check.

Or an entrepreneur could become embroiled in many time consuming and possibly restrictive compliances such as permits from the local fire department, permits for control of air and water pollution, permits for signs, country permits, licensing from the state, licensing from the federal government, licensing for purposes of state or city or county sales tax, and permits issued by the local or state health department.

These are the things that might have to be dealt with at the start of a home business career.

You would be well advised to have knowledge of a local attorney who can advise you for reasonably cheap fees at the beginning of your business career until you are ready to incorporate your business.

If you start doing financially well, without an attorney to advise you of different legal problems that come up, from customers or the government at any level, you might find your beautiful financial growing future trashed by an incompetent, raised on government employee, or a greedy customer seeking to line their pockets, unfairly, at your expense.

Many times an attorney can stop these profit eaters dead in their tracks or at least extremely limit the damage and expense they can do to you.

Source:
My 40 years of legal business experience

Running a small business can be a legal mine field, and without appropriate knowledge and understanding of the relevant risks involved, you can quickly find yourself in some difficulties. Running a business without consideration for the law can be dangerous, particularly when considering the potential financial and even criminal risks you may be running. That’s why it’s a good idea to have an idea of the relevant legal provisions that may apply to particular circumstances in order to understand where you might be personally liable, and how you can avoid incurring such liability when managing a small business.

The first thing to bear in mind is that a business has its own legal formalities relating to the particular business form you choose. For example, running your business as a sole trader will require very little in the way of natural legal formalities, other than that you file appropriate tax returns annually and keep appropriate records of your financial transactions on a daily basis. This burden is far stricter if you choose to operate as a limited company. If you do decide to go down this route, it may be worth investing in a book on basic company law for reference. Don’t take the risk and try to muddle through; it’s better to know what is expected of you and what the penalties are by getting some form of expert opinion.

Secondly, you may face liability if you cause injury, either financially or physically to another party in the course of running your business. It is advisable therefore to opt for decent insurance coverage to protect against eventualities of this nature. Another good idea is to include an exemption clause or disclaimer whenever you can, although it’s important to understand these are not watertight. What they can do is limit your liability in damage to physical property where it is reasonable to do so, and in no way can they limit any liability you may have for anything deemed unreasonable or anything relating to a physical injury or death.

It’s a criminal offense as a business director to trade when you are aware that your business is insolvent. This is a general rule, and there are obviously intricacies involved, still this must be protected against. You could receive a criminal record if you breach these laws so take expert advice at an early stage if you face financial difficulties.

Similarly it is a criminal offense not to take records of your finances and to hold on to those records for three years. You are open to inspection of those records by the relevant authorities as and when they have a need to examine your business dealings. This is also compounded by legal requirements under the VAT regime, where you will be required to keep more rigorous accounts and are with almost certainty, likely to be subjected to periodical inspections.

There are a number of key legal provisions you should be aware of as a small business owner, and they are far too numerous to list here. Rather than spending fortunes on legal advice regarding simple matters, a better option is to purchase a beginners’ guide to company law. This will give you a quick insight into the practical requirements of running your business on a day to day basis and you can top up your knowledge bank with legal advice as and when required.

Starting a small business is no child play! The rules and regulations governing enterprises might seem quite complex and more than anything…endless! While it might be a bit frustrating, it is very important to get the rules right before contemplating a new business. Starting with naming the business, right until expansion plans and beyond, the legalities must be taken care of to avoid greater trouble later.

Queries regarding the mandatory procedures and accompanying paperwork tops any amateur entrepreneur’s FAQ list. Some of the most basic requirements are as follows:

Business license: In the United States, a business license is a must in order to conduct a legal business. The regulatory authorities differ depending upon the location of the business. If you plan on operating within a city, then such a license can be applied for with the relevant authorities of that city only. Other countries will also have their own specific set of requirements.

Naming the business: So, you have a very catchy name for your business, eh? Better check if it is available, before you get sued for trademark violation.

• Register the name as a fictitious one if you plan on conducting the business in any name other than your own.

• In the U.S., sole proprietorships and partnerships will have to register their trade name with the secretary of the state.

• Likewise, corporations will have to register with the Department of Financial Institutions of that particular state.

• Register the trade name as a trademark if you intend to sell products under the same name.

Form of ownership: Business organizations could be of different types, such as sole proprietorships, partnerships, incorporated businesses, so on and so forth. Tax and liability issues are different for each and hence you may need to consult a legal expert for help. Some of the relevant documents that come into the picture are listed.

• Partnerships: Although not a compulsion, partnerships could file the articles of partnership with the state government. Buy and sell agreements between the buyers and sellers ought to be maintained for convenience.

• Limited Liability Corp. (LLC): Articles of organization, operating agreements, buy and sell agreements are some of commonly used documents.

• Corporation: A pre-incorporation agreement must be put in order. Approval for incorporation must be sought from the government after filing the articles of incorporation with them and in response, the state government will issue a Charter for Corporation, stating all the powers of and laws to be followed by a corporation. Buy-sell agreements must be taken care of as well.

• Sole proprietorship: This is among the simpler forms of business organization and involves very little paperwork.

Location: One may need to take zone permits for locating a business in a particular area, especially if it involves manufacturing or selling. The zoning department must be contacted for the same. Ensure that your business also has the relevant environmental permits, which is currently an area of great concern.

Employees: While hiring people, strictly adhere to immigration and child labor laws. The employment eligibility of new employees will have to be verified in accordance with Federal Immigration Reform and Control Act of 1986 and the relevant document is the Employment Eligibility Verification Form I-9. Compensation offered must not be in violation of minimum wage laws. The U.S. Department of Labor, Wage and Hour Division will give you all the relevant information on labor laws. An unemployment insurance tax will have to be paid to the state if you employ personnel for 5 months or more, or if you have paid out gross wages of $1,500 or more in a year’s time. The rates of taxation might vary from state to state.

Intellectual Property Rights: IPR, as it is known, should be used to protect your ideas from being misused or appropriated by others. You can either register the intellectual property as a trademark, or protect it under the Copyright and Patent Act.

Taxation: Legalities surrounding taxation must also be strictly adhered to. From the employee’s compensation, you will have to deduct taxes payable to the federal and state governments apart from the deduction for employee insurance. In addition, businesses have to pay taxes on their own income to the federal and state governments.

Health and Safety: Health and safety standards must be maintained at work in order to ensure the safety of employees. Most states have similar standards and for more information, contact the local OSHA (Occupational Safety and Health Administration) office. Every enterprise employing three or more people must provide for insurance against on­the­job accidents. More information can be obtained from your state government office.

Seller’s permit: A seller’s permit will be required if you plan a retail outlet.

Find all the legal forms and contracts that you may need on What is most confounding about the legalities of starting a business is perhaps the complex terminology used. could help you deal with the particularly tricky stuff!

Laws exist to make processes a whole lot smoother and are essential for any well functioning society. While the legalities involved in starting a business may seem onerous, once you deal with them, consider half your troubles gone!