Gainesville Business And Real Estate Law Blog

LLCs and the noteworthy operating agreement

An operating agreement can be a critical component to a successfully organized Georgia Limited Liability Corporation. It can be a helpful tool to prevent litigation among the members of the LLC.

Under Georgia law, O.C.G.A. 14-11-101, the agreement may be verbal or in writing. The operating agreement’s purpose is to express how the business will conduct its dealings. Members of the LLC may enforce it, as can those not a party to the operating agreement.

Beware fraudulent lending practices

Georgia residents who are struggling to keep up with their mortgage payments can understandably be worried about how they may avoid losing their homes and how to deal with sometimes aggressive debt collectors and lenders. One thing people in this situation should investigate is the validity of their mortgages. Sadly, some mortgage are better than others and that is not always about interest rates.

As the Federal Bureau of Investigation points out, mortgage fraud may be perpetrated by brokers, bank officials, appraisers and others involved in the purchase and sale of real estate. When these professionals use their industry knowledge to unfairly profit and essentially take money out of the hands of consumers or even banks, innocent people are put at risk of having bad loans.

Falling behind on payments does not have to mean foreclosure

The storms of life and the ups and downs of the economy in Georgia and across the U.S. have made home foreclosures a common occurrence in the last few decades. Homeowners who have lost a job or find themselves in other financial straits may feel that losing their home is inevitable, but that is not always the case.

Some states require lenders to file a foreclosure in court. According to the Georgia State Attorney General's Office, the lender does not need to involve the court to foreclose on a home here. Here, the lender must alert the borrower of its intent to hold a foreclosure sale 30 days before the sale date. Following the sale, the new owner can begin eviction proceedings, if necessary.

Impactful disputes can come up for real estate owners

Complex legal situations can arise in connection to real estate ownership. For example, real estate owners sometimes end up in disputes in relation to their property.

The real estate disputes that can come up for a property owner come in many varieties and can be with a wide range of different parties. A couple examples include disputes with owners of nearby properties (such as conflicts over boundaries) and disputes with a mortgage lender (such as disputes related to a potential foreclosure).

Contracts can break down at any step in the process

A fundamental principle in business is the agreement between two parties for goods and services. Sometimes it’s a buyer-seller relationship, other times it’s something behind the scenes that is essential to help you get your job done. Whatever the contract is, it affects your bottom line and your business overall. It may be something obvious and central to your brand or it can be a subtle cog in the system.

When a cog breaks down, the whole system can go. While sometimes it’s the main ingredient at a bakery or a key component for a technology company, it can also be something as basic as a packaging supplier or a forklift.

Addressing contract dispute matters

When it comes to contract disputes, the consequences can be very damaging for businesses of all sizes and across various fields. Our law firm knows that these disputes can present various challenges for businesses across Georgia, such as a great deal of stress, time, money, and other resources. Moreover, the outcome of a contract dispute can impact business relationships, affect a company's reputation, and have other repercussions, which highlights how important it is for you to address a contract dispute appropriately.

In the event that you find yourself in the middle of a dispute over a business contract, it is pivotal for you to carefully go over the terms of the agreement and all relevant details. Sometimes, these disputes can be resolved by negotiating with the other party, avoiding court. However, these disputes often result in legal action, in which case you should be prepared for the courtroom and have a firm grasp of your rights.

Do you need an EIN?

One of the most important things for you to consider when forming a business is your tax profile. Depending on how you plan to operate, you may first need authorization from the Internal Revenue Service to manage your companies tax affairs and liabilities appropriately. This starts by understanding whether or not you need an Employment Identification Number (also called a business tax ID). You have likely seen one before; it should have been printed or written on all of the W-2 forms you have received from past employers. Yet without a working knowledge of the U.S. Tax Code, how are you to know if you need one? 

The IRS has a checklist on its website which provides you with a few basic questions to help you understand whether or not your business needs an EIN. These include: 

  • Do you employ any workers? 
  • Is your business a corporation or a partnership? 
  • Are you required to file either an Employment, Excise, or Alcohol, Tobacco and Firearms tax return?
  • Do you employ a non-resident alien from whom you withhold taxes on income? 
  • Do you have a Keogh plan? 
  • Are you involved in the management of a trust, estate, non-profit, farmers' cooperative, third party administrator, or real estate mortgage investment conduit?

What are the foundations of a good business?

Aspiring Georgia entrepreneurs like you have your sights set for a successful business. We at the Roberts Law Firm, PC, help business owners understand the foundations of a strong business when they're starting out, allowing you to set yourself up for years of future success.

The most important thing to keep an eye on when starting a business is the legalities. You'll need all of your paperwork in place. You should know what permits are required to run a business, and if yours needs any special paperwork in addition to that. Don't cut corners or skimp out on paying for the licensing that you might need. This will save you a lot of hassle later down the road.

Fraud in contract can lead to lawsuit

As reported in USA Today, lawsuit filings involving a professional football team’s s co-offensive coordinators of last season are in full force. In these cases, the plaintiff-coordinators allege that the athletic department and other specific individuals committed fraud in persuading the plaintiffs to sign a new contract.

Fraud in the inducement is an old theory in contract law. As the term suggests, one party induces another party to sign a contract, after using misrepresentation or fraud in some manner.

What is contract consideration?

Contracts may seem to be such simple things; you and/or your company agrees to offer a service in exchange for a benefit from another party in Gainesville. Yet essential elements must be present in order for a contract to be considering legally binding. For example, the service that you provide and the benefit you recieve for it are both classified as consideration. What is consideration? The National Paralegal College defines it as an object, act or promise of value that a promisor recieves from a promisee in exhange for its promise. Indeed, according Section 13-3-1 of the Code of Georgia, consideration must be present for a contract to be valid. 

There are actually six different types of contract consideration. These are: 

  • Past consideration: Something is done by the promisee at the desire of the promisor before the date of the agreement
  • Present consideration: Consideration which moves simultaneously with the promise
  • Future consideration: Consideration from both sides is to move at a future date
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The Roberts Law Firm, P.C.

The Roberts Law Firm, P.C.
604 Green Street
Gainesville, GA 30501

Toll Free: 866-594-7535
Phone: 404-537-2796
Fax: 404-841-0775
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