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How do you resolve a partnership dispute? This question is one many partners face at one point or another during the life of their partnership. Disputes are inevitable, but they do not have to mean the dissolution of the partnership. There are things you can do to resolve a partnership dispute. Of course, much of this depends on the partners and the context and extent of the dispute. To resolve a partnership dispute in Maryland or any other state in which your partnership is registered, there are two basic approaches: the proactive and the reactive. By being proactive, you can avoid many common disputes. When disputes are unavoidable, you can address them in a few different ways, each of which may render different results––the latter is critical to keep in mind, because it is also key to choosing the right way to resolve the partnership dispute. How Do You Prevent…

Startup businesses and small firms frequently find themselves needing more people in the early stages of operations. For limited liability companies (LLCs) with low cash flows and few benefits to offer yet, hiring independent contractors can seem like a good compromise. Before you do so, you should consider the benefits and detriments of hiring a contractor. LLC Employee vs. Contractor There are no rules that dictate whether an LLC can or cannot hire an independent contractor. What is important for the LLC owner to remember is the differences between an LLC employee versus a contractor. A small business has more at stake if they misclassify an employee as a contractor and are caught by the state or IRS. A contractor is not covered by employment law Under Maryland wage and employment law, an independent contractor is not granted the same protections and rights as an LLC employee. However, merely hiring…

Owning a business comes with a lot of responsibility. Not only do you have to ensure that the day-to-day operations run smoothly, but you also have to deal with employees, clients, customers, and more. Because of all the issues that may arise, it’s smart to hire an attorney and keep them on retainer. Some business owners choose to hire a lawyer on an ad-hoc basis and use their services only when needed. While this may be more affordable in the early days of your business, having one on retainer offers multiple benefits. For example, what would happen if an emergency or urgent issue occurred? If you have an attorney on retainer, you have someone to deal with the problem right away. You don't have to search for the right legal professional or spend time getting them "up to speed" with your business. The attorney you have on retainer will know…

How to establish a corporate veil is an essential issue if you own a business, by yourself or with others. If you own your business as a sole proprietor or partnership, you could be held personally liable for your company’s actions. If it is done correctly and the entity owning your business is a corporation or limited liability company (LLC), you may avoid this issue by protecting yourself with a corporate veil. Lusk Law, LLC, can help your business choose the right way to structure its ownership. There are costs and benefits to every legal entity, so we’ll advise you which one we think would best meet your needs. We also can defend your business in litigation or protect its interests by pursuing legal action on your behalf. Learn more about how a business attorney can help you by calling us at (443) 535-9715. What is a Corporate Veil? While you…

What to know before hiring a contractor can be the difference between conducting business as usual or finding yourself in legal trouble. Contractors have rarely been more numerous or available than they are right now. In addition to traditional contractors, you can hire someone to create a website for your business, assemble your office furniture, or deliver your lunch. If you need help getting something done, hiring an employee or finding an independent contractor may be the right choice. It depends on your wants, needs, and applicable laws. However, you need to know the rules governing your business relationship with contractors. A person you think is your contractor may actually be an employee, with all the taxes, laws, and regulations that accompany them. Maryland business lawyer Rebekah Lusk appreciates the practical and legal challenges involved in hiring a contractor. We will work with you to review the facts of your…

If you have a short-term need for extra staffing, you may need to engage a contractor, but before you do, it’s important to understand how to hire a 1099 contractor. Be sure you know all of the legal elements of the hire before you proceed. For many decades, employers chose to classify their workforce as employees to manage customer expectations, workflow, productivity, and staffing levels. The rise of the gig economy has highlighted the differences between contractors and employees and increased the number of people who are working as independent contractors. The IRS and the State of Maryland both lay out the rules for hiring a 1099 contractor, along with how they are to be paid. Definition of an Independent Contractor An independent contractor is a free agent that cannot be controlled by an employer as if they were an employee. In contrast, an employer can control an employee in…

What should be included in a severance package depends on the person leaving the company and what the employer wants to accomplish. Severance packages and agreements are good ideas for employers ending a relationship with an employee. They provide some certainty for an employer because the employee will be obligated to do and not do certain things. But how much control an employer can expect in exchange for extra benefits or cash is limited. No matter why someone is leaving your company, a severance package and agreement can give you some extra assurance (though no guarantee) that the person won’t give you a nasty legal surprise in the months ahead. Lusk Law, LLC, can help you handle severance issues and protect your business. What Does a Severance Package Usually Include? Ideally, the severance package and agreement will be customized to the individual and the situation. It may be a lay-off…

The Maryland Healthy Working Families Act Provides Benefits When You or Family Members Get Sick On Jan. 12, 2018, Maryland became the ninth state to adopt a mandatory sick leave statute, when the Maryland General Assembly overrode Governor Larry Hogan’s veto of legislation requiring Maryland employers to provide sick and safe leave to their employees. Known as the Maryland Healthy Working Families Act, this law provides employees with up to 40 hours of sick and safe leave each year and went into effect on Feb. 11, 2018. Who is Affected? The Maryland Healthy Working Families Act applies to all employers, including state and local governments, in the state of Maryland. However, the law distinguishes between large and small employers. For employers with 14 or fewer employees, leave may be provided on an unpaid basis. For employers with 15 or more employees, sick and safe leave is paid at the employee’s…

Please find this memo to be a summary of information that covers the new Paycheck Protection Program (PPP) that is part of the CARES ACT. This memo is by no means a complete analysis of the program, and should not be taken as direct legal advice. Please contact Lusk Law, LLC for any specific legal questions questions regarding Paycheck Protection Program. This program provides a unique opportunity for self-employed individuals, sole proprietorships, and independent contractors who may not receive a paycheck, as the program permits you to include net earnings from self-employment as calculation towards payroll. This program will offer self-employed individuals protection during these challenging times. WHO MAY BORROW: Small businesses with 500 or fewer employees (including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors) are eligible. Businesses with more than 500 employees are eligible in certain industries. If you are unsure of your business…

Please find this memo to be a compressive list of information that covers the new Families First Coronavirus Act. This memo is by no means a complete analysis of the law, and should not be taken as direct legal advice. Please contact Lusk Law, LLC for any specific legal questions regarding Families First Coronavirus Response Act.   When:             Passed on March 18, 2020 but takes effect on April 1, 2020 until December 31, 2020 Who:               Employers with less than 500 employees What:              After April 1, 2020   Paid sick leave: up to two weeks or 10 days (80-hour cap) for full-time employees: The employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19. (must be paid at the employee’s required compensation) The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19. (must be paid…