Category: Business Law & Commercial Litigation

Forming a Business Entity: A Comprehensive Guide to Choosing the Right Structure

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You Choose the Right Business Structure.

Starting a business is an exciting journey, but there are many important decisions to make along the way. One of the most crucial decisions is choosing the right business structure. The type of business entity you select will significantly impact your company’s liability, taxation, management, and ownership structure. This comprehensive guide will help you understand the different options available.

Sole Proprietorship

A sole proprietorship is the simplest and most common form of business. It is owned and operated by a single individual who is responsible for all aspects of the business.

Pros:

  • Easy to set up and maintain.
  • Complete control over the business.
  • Minimal legal formalities and paperwork.
  • Pass-through taxation.

Cons:

  • Unlimited personal liability; the owner is responsible for all debts and legal obligations.
  • Limited funding opportunities.
  • Potential difficulty in transferring or selling the business.

Example: A freelance graphic designer operating under their name would be a sole proprietor.

Best for small, low-risk businesses with no employees and minimal capital requirements.

Partnership

A partnership involves two or more individuals agreeing to share a business venture’s profits and losses.

Pros:

  • Relatively easy to set up.
  • Shared responsibility and decision-making.
  • Pass-through taxation.
  • Potential to attract investors.

Cons:

  • Unlimited personal liability for all partners unless a limited partnership is formed.
  • Potential for disagreements and conflicts among partners.
  • More complex management structure compared to a sole proprietorship.

Example: Two friends open a small bakery together, sharing the costs, responsibilities, and profits.

Best for businesses with multiple owners who want to share decision-making and financial responsibility.

Limited Liability Company (LLC)

An LLC is a hybrid business structure that combines the limited liability protection of a corporation with the pass-through taxation of a sole proprietorship or partnership.

Pros:

  • Limited personal liability; owners are not personally responsible for business debts and liabilities.
  • Flexible management structure and ownership distribution.
  • Pass-through taxation.
  • Possible tax benefits.

Cons:

  • More complex and costly to set up and maintain than a sole proprietorship or partnership.
  • Some states impose additional taxes on LLCs.
  • Possible restrictions on the type of businesses that can form an LLC.

Example: A group of software developers creates an LLC to develop and sell a mobile app.

Best for businesses seeking limited liability protection and a flexible management structure without the formalities of a corporation.

Corporation

A corporation is a separate legal entity from its owners (shareholders) and is governed by a board of directors.

Pros:

  • Limited liability protection for shareholders.
  • Ability to raise capital through the sale of stock.
  • Transferable ownership.
  • Perpetual existence.

Cons:

  • Complex and costly to set up and maintain.
  • Double taxation; profits are taxed at the corporate level and again when distributed as dividends to shareholders.
  • Extensive record-keeping and reporting requirements.

Example: A tech startup raising capital through venture funding would likely choose to incorporate.

Best for raising significant capital, going public, or operating on a large scale.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You Choose the Right Business Structure

Choosing a business structure can seem overwhelming. You can make an informed decision by understanding the different types and how they may affect your business. Speak with our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. about your legal options. Call us at 215-574-0600 or contact us online to schedule an initial consultation. Located in Philadelphia, we serve clients in Pennsylvania and New Jersey.

Can A Lawyer Help My Business Negotiate with Vendors?

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Help Businesses Develop and Negotiate Contracts.

Most business will eventually need to contract with outside vendors and others in order to meet business operations and success. A contract attorney provides a valuable resource for any activity requiring a contract, and more businesses are understanding the necessity of a contract that details the role of each party and provides legal protections.

What Does a Contract Attorney Do?

Contracts establish legally enforceable obligations between the parties and working with an attorney helps ensure that any contracts your business enters are executed properly and your interests are protected. Contract attorneys can review potential contracts, draft new contracts, evaluate existing contracts in disputes, and handle breach of contracts. Whether drafting a new contract or reviewing an existing one, a contract attorney can prove vital in key areas such as:

  • Terms: Contracts spell out the essential terms, or the fundamental conditions of the contract, which detail the obligations of each party and what actions are considered a breach of contract.
  • Provisions: Contract provisions are additional stipulations clarifying specific points and provide extra protection for all parties.
  • Laws: Contracts must abide by the local and state laws and regulations of the jurisdiction where they are filed. Working with an experienced attorney rather than adapting an online contract template is particularly valuable to your specific business.

Why Should I Hire a Contract Attorney?

Contract attorneys have extensive experience in contractual issues and applicable state laws, and may have specialty practice areas, such as intellectual property, tax, licensing, or sales agreement contracts. Working with a seasoned contract attorney is beneficial as they will provide:

  • In-depth understanding: Legal terminology can be complex and confusing, and managing contracts without a comprehensive understanding of legal jargon can leave you open to liabilities, inaccurate assumptions, and other critical problems. Contract lawyers are knowledgeable in contractual legal terminology and can help you achieve a better understanding.
  • Smooth negotiations: Contract negotiations can go off the rails if one or more parties takes offense of the terms. An attorney will take responsibility for drafting and executing the contract as an impartial party, preventing such a situation from occurring.
  • Incorporate laws: Local and state laws and industry regulations frequently change and must be correctly detailed within contracts. A contract attorney possesses vast knowledge of the most current laws, regulations and trends and will ensure that your contract meets legislation.
  • Prevent loopholes: The purpose of a contract is to provide protection for you and your business. Loopholes, whether intentional or otherwise, can put you at-risk of potential liabilities. When drafting the contract your attorney will make certain no loopholes are included.
  • Ensure terms: The essential terms of the contract are vital, as they detail what each party is responsible for, and the consequences should the terms be violated. Your attorney will include the best possible terms related to your industry and to protect you from disputes.
  • Protect you: Your contract attorney will ensure the contract includes specific information as to what constitutes a breach of contract and the consequences. Your attorney will also be a valuable resource for enforcing the contract should a breach occur in the future.

Whether you are starting a new business, establishing new vendor relationships, or experiencing a breach of contract, working with an experienced contract attorney is valuable to your business’s protection and future success.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Help Businesses Develop and Negotiate Contracts

All businesses enter into some form of contract with vendors and others at some point during the life of the business. Contracts are necessary to provide clearly defined terms and protection for all parties. The experienced Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. work with many business clients to draft and execute many types of contracts. Contact us online or call 215-574-0600 for an initial consultation. Located in Philadelphia, we also serve clients in South Jersey, New Jersey and Pennsylvania.

Do Women Over 50 Face More Employment Discrimination?

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Whether searching for employment, aiming for a promotion, or simply trying to hold on to their current position, older women face extra challenges in the workplace. They face the dual threat of age and gender discrimination, which often hinders their chances of success.

Despite often having ample experience and qualifications, many sexist biases against women follow them while working during their older years. An employer’s preference for younger women at work could cause older women in the same workplace to experience gender and age discrimination. The compound discriminations could result in lower pay, fewer opportunities for advancement, and forced early retirement.

Age Discrimination Commonly Occurs in the Workplace

The American Association of Retired Persons (AARP) says 90 percent of workers surveyed in the United States say that age discrimination commonly happens at their place of work. A majority of women and men alike say that they experienced age discrimination while working.

Women are slightly more likely than men to say they experienced age discrimination at work. The AARP says 64 percent of women and 59 percent of men surveyed said that they experienced age discrimination.

While a vast majority of all workers say age discrimination occurs, very few file complaints. The AARP says only three percent of those surveyed said they filed a formal discrimination complaint.

What to Do if You Experience Workplace Discrimination

The Equal Employment Opportunity Commission (EEOC) says any age-based discrimination is illegal. The federal employment oversight agency investigates complaints filed by anyone age 40 or older.

If you have good reason to think you were passed over for a hiring opportunity, promotion, or other work-related matter due to your age, you could file a complaint with the EEOC. The EEOC will investigate a complaint and determine whether or not it has merit. When an age discrimination complaint has merit, you can then file a civil action in federal court.

An experienced business lawyer can help you to prepare an EEOC complaint and support it with evidence. The federal agency will have up to six months to investigate your claim and either approve or deny it. An approval enables you to move forward with a lawsuit against the discriminatory employer. That is true in the state court system, too.

Possible State-Level Action in Pennsylvania

Your attorney also can help with state-level filings that might enable you to file a civil complaint in the Pennsylvania court system. Pennsylvania law outlaws age discrimination and other forms of workplace discrimination.

The Pennsylvania Human Relations Commission (PHRC) investigates discrimination complaints. If it says your complaint has merit, you could pursue legal action in the state courts.

You do not have to file complaints with the EEOC and the PHRC. The federal and state agencies accept the decision of the other regarding workplace discrimination investigations. If you file with the PHRC and it says your complaint has merit, you can file a federal action as well as a state action.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green Defend Workers’ Rights

If you were discriminated against at work, contact the experienced Philadelphia business lawyers at Sidkoff, Pincus & Green today. Fill out our online form or call 215-574-0600 to schedule an initial consultation at our Philadelphia law office. We represent clients throughout Pennsylvania and New Jersey.

How Do I Transfer Ownership of My Business to My Child?

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The Philadelphia Business Lawyers at Sidkoff, Pincus & Green Help Clients With Family Business Matters.

Family businesses, also known as closely-held businesses, are owned, controlled, and often operated by a single family, whether it be siblings or parents and their children. It is common for these businesses to eventually be passed down to the next generation in the family.

When done correctly, transferring business ownership to your children can ensure security and income. When transferred incorrectly, it can jeopardize both the business and family relationships. The successful transfer of the ownership of your business to your child is complex and requires careful planning. The reality is, there are nearly as many ways to transfer a family business as there are types of businesses. It is important to have a thorough discussion with an experienced business lawyer who knows how to accomplish your goals with regard to your family and complete financial picture.

What Are Some Ways Businesses Can Be Transferred to Children?

There is no question that handling a family business is an essential part of planning your estate. The following are some ways a business can be transferred to your children:

  • Include it in your will: You can simply put your interest in the business to your children in your will. This allows you to maintain complete control of the business for as long as you live, and your children to benefit from future ownership as they learn to manage the business. The downside to this route is the concern that as owners get older, they may not be able to fully run the company’s affairs. There are often tax advances to transferring all or part of the business while you are alive.
  • Gift it now: You can give your children part or all of the business now. You may have to pay a gift tax, but the lifetime exclusion is large, so there may be little or no gift tax to pay, at least through the end of the year. A major advantage of gifting is that any future appreciation in the value of the business will be excluded from your estate, and not subject to estate tax when you die. A disadvantage is that your children’s tax basis in the business will be the same as yours today, rather than a “stepped up” basis, which would be equal to the value at the date of death if they inherited ownership.
  • Sell to your children: Owners often want to transfer ownership while they are still living, but continue to receive income from the business. In these cases, a good option for owners is to sell the business to their children.
  • Transfer the business to a trust: You may also sell or give an interest in the business to a trust for the benefit of your children. This is advantageous because it protects the children’s interest from creditors and ex-spouses. Other advantages to trusts are that they can help avoid capital gains tax on the sale of the trust assets, and avoid income tax on interest payments from the trust to the owner.

Many of the above options could be combined to meet your family business needs. If you have only one child, and that child is qualified and also wants to run the business, the transferring process is fairly straightforward. When none of these three things are the case, transferring family business ownership can become much more complicated. For these reasons, it is strongly recommended to work with a skilled business lawyer to ensure that your specific goals are met.

The Philadelphia Business Lawyers at Sidkoff, Pincus & Green Help Clients With Family Business Matters

If you are looking to transfer the ownership of your business to your children, the knowledgeable Philadelphia business lawyers at Sidkoff, Pincus & Green are here to assist you. Call us at 215-574-0600 or contact us online to schedule an initial consultation. Located in Philadelphia, we represent clients throughout Pennsylvania.

What Should I Consider When Selling My Business?

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If You Are Selling Your Business, Contact the Knowledgeable Philadelphia Business Lawyers at Sidkoff, Pincus & Green .

Business owners put l time, energy, and hard work into establishing and growing their businesses. Whether your business is successful or not, there may come a time when you decide to sell your business. Even if the time is not now, you should always have a plan and strategy for when the situation to sell arises.

Preparation is Key to Success

Selling your business will probably be one of the most important decisions you will make in your life. You get one chance to price your business accordingly to reflect your effort and success. You should also determine your priorities, evaluate the timing of the sale, and assemble an expert team to help you with the sales process. You also need to understand the ethical and legal duties you face as you exit your business.

Before you start the sales process to sell your business, you must understand the steps involved. Read on to understand some factors to consider to ensure a successful sale.

  • Determine what you want from the sale
  • Define your priorities
  • Gather professional advice
  • Negotiate a good price
  • Establish acceptable terms

Finally, you must go into the sale knowing what you want to achieve: what are your non-negotiable items? What items are negotiable? If you do not firmly believe in your end result, you are less likely to end up in the best possible position.

Five Factors to Know Before Selling Your Business

Business sales plans differ based on business size, complexity, and financial standing. Learn about the top five factors every business owner should consider before selling.

  1. Business Structure and Ownership

Your business structure and the individuals who claim ownership will affect the sale of your business.

Are you the sole proprietor/owner of your business? The decisions around the sale are solely up to you and require fewer formalities.

If your business is set up as a limited liability company (LLC) or corporation, all members or shareholders must agree on the sale. This agreement can even be a corporate resolution, usually dictated by the operating agreement or bylaws of the company.

  1. Due Diligence

When selling a business, due diligence matters. You will be better off if you are more prepared, organized, and thorough with all business dealings and asking for the total value of your business.

You should always protect yourself and your business information when trying to sell your business. Before disclosing private information about your business, protect yourself by asking the potential buyer to sign a confidentiality agreement. Be prepared that most buyers will want to see the company’s financial records.

  1. Employees

Employees make up an essential part of your business. Each individual needs to be evaluated with care when considering the sale of your business. The sale of your business should never be a surprise. You should discuss the deal with employees beforehand and talk to potential buyers about your employees.

  1. Value

Pinpointing the exact value of a business can be complex. You have likely put years of work into it. You are probably full of emotions, but you should be realistic when setting a price for your business.

It would help if you researched or sought help to determine the realistic value of your business. You can consult with a CPA or lawyers or hire a business evaluator to determine what value the marketplace has for your business and structure your sale appropriately.

  1. Financials

The sale of your business depends on your finances and the buyer’s finances. The buyer is responsible for securing the agreed-upon purchase price of a business. If the buyer is low on cash, financial companies help finance the transaction. Sometimes, a buyer may not have enough cash to pay the entire price. Then, a financial business will step in to provide guidance and loans to finance the sale.

Selling your business is a big step. The process will be much easier if you plan and consider the many factors that go into this big decision. The final sale should be a success with a good strategy, sound advice, and a thorough plan.

If You Are Selling Your Business, Contact the Knowledgeable Philadelphia Business Lawyers at Sidkoff, Pincus & Green

 

The experienced Philadelphia business lawyers at Sidkoff, Pincus & Green can provide the guidance and expertise you need when you decide to sell your business. We represent clients throughout South Jersey, Pennsylvania, and New Jersey. You can call 215-574-0600 to schedule an initial consultation at our Philadelphia law office.

Can Executives Negotiate Their Severance Packages?

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Help Clients to Get Severance.

Parting ways with your longtime employer does not necessarily mean your income from that employer ends with your employment. A severance package often makes it possible for a valued worker to part ways with no animosity.

A severance agreement usually includes specific legal agreements that stipulate that, in exchange for accepting the severance package, the former employee cannot make negative comments about their former employer. Accepting the severance also usually means giving up any right to sue the former employer for any reason.

A severance package could bridge the income gap between jobs. If you find one right away, you still get to collect your severance pay.

How that severance is paid, the amount, and its duration all are important to take into consideration when accepting a severance package. These various factors can affect your life for the foreseeable future, so it is important to negotiate a severance package prior to parting ways with an employer.

Factors to Consider During Severance Negotiations

It helps to consider what you need versus what you are offered for severance. Overlooking important needs could create an unintended hardship.

For most people, the most important factors to consider when negotiating a severance agreement could include:

  • Extending benefits through the severance period
  • Handling retirement packages and incentives
  • Mutual non-disclosure agreements
  • Whether you need to return or laptop computer or other work items

You likely will want to maintain your health insurance benefits and have the employer continue deducting any pay for health care benefits. If you have a 401k or another retirement package, rolling it over or accepting a payout is very important.

If you were issued a laptop or other equipment to keep at home so that you could do your job, you might be able to keep it. Non-disclosure agreements could ensure that neither you nor the soon-to-be-former employer make disparaging remarks about the other party or file any lawsuits.

When Severance Negotiations Could Start?

Severance negotiations usually begin when your job is about to end. Most people have a good idea whether or not their jobs might end soon. In such cases, notification that the job is ending and severance is offered is not surprising, but it still could be upsetting.

The potentially emotional nature of exiting a job might encourage you to accept a severance upon receiving the offer. That would be the first severance negotiations mistake that you could make.

Instead of accepting right away, you should tell the employer that you need to review the offer. No law requires employers to offer severance packages, and you are not obligated to accept one.

Standard practice is to allow you up to 21 days to review the document and accept or reject it. If you accept it and change your mind, you usually have seven days to revoke the acceptance. You can make a counteroffer and negotiate the severance regarding payment and any other items of importance to you.

How Severance Affects Unemployment Benefits?

If you accept severance pay, you cannot file for unemployment until the severance pay expires. The state views severance as an extension of employment.

Your first true day of unemployment is when the severance agreement expires, and no more money is due to you from your former employer. Once that final date specified by your severance package arrives, you can apply for unemployment benefits the next day. Filing sooner than that would violate state law.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Help Clients to Get Severance

If you are facing employment termination and want to negotiate a severance agreement, the experienced Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. can help. You can call 215-574-0600 or contact us online to schedule an initial consultation at our Philadelphia law office. We represent clients throughout Pennsylvania and New Jersey.

Should I Start an LLC or a Corporation?

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Learn More from Experienced Business Lawyers in Philadelphia at Sidkoff, Pincus & Green.

Whether you provide consumers with goods, or clients with services, liability is an ever-present issue in businesses of all sizes. You might start a business, but have not made it a separate legal entity. If so, you could be liable for damages arising from any harm caused by the goods or services that you provide.

There are two effective ways to handle potential liability from your business activities. One is to create a limited liability corporation (LLC), and the other is to create a corporation. An LLC and a corporation have their own advantages. The following could help you to choose which would be best for your business ambitions.

Pros for Creating a Business Entity

An LLC and a corporation are similar in that they create legal entities. Those legal entities enable you to protect your personal assets by making them wholly separate from your business activities.

A medical doctor or an attorney who enters into private practice are good examples of people who provide services that could raise liability issues. Creating an LLC or a corporation for a private practice helps to limit liability to only those entities.

You could appoint yourself as the president and CEO of your LLC or corporation, paying yourself a regular salary and annual bonuses. Once that money is in your account, it is separated from your business activities.

Sole Proprietorship Makes You Vulnerable to Business Liability

Without an LLC or a corporation, you are operating what is called a “sole proprietorship,” which is one way to say that you work for yourself while providing goods or services to others.

A sole proprietorship does not protect your personal assets against liability that might arise from business practices. You could lose your life savings, home, and other assets if a customer or a client were to sue you and win a large settlement in court.

If you have an LLC or a corporate structure, the liability would not extend to your personal assets: instead, you could obtain business insurance that helps to cover the costs of liability if any issues were to arise.

Advantages of an LLC

An LLC is a simple and affordable way to create a legal business entity. An LLC might have more than one owner, but the ownership structure is small and reduces the amount of paperwork that you would have to file each year.

An LLC enables greater flexibility for management. You can change the management structure without enduring complicated legal filings or extensive paperwork.

An LLC also has a tax advantage over corporations. That is because the federal government does not tax the profits of LLCs like it does corporations. The profits from LLC entities go straight to the owners. And those owners pay taxes on their respective incomes.

An LLC does not have to endure complicated tax filings like a corporation does. It also does not require the kind of specialized accounting assistance and legal help that a corporation often requires to file and pay its annual taxes.

Disadvantages of an LLC

An LLC needs to turn a profit for its owners to make money. If a bad year results in no profits, then there is no pay for the owners.

An LLC requires its owners to have other sources of income. Or the owners need to be very frugal with the profits that they obtain during profitable years.

A strong business model and quality goods or services can help to overcome the potential for business losses. But you never know with something unexpected might occur – like a global pandemic that triggers statewide lockdowns.

An LLC also leaves its owners vulnerable to criminal allegations arising from potentially unlawful business dealings. Just as the profits flow straight to the owners, so does accountability for any criminal acts that might occur.

How to Create a Pennsylvania LLC?

It is relatively simple and affordable to create an LLC in Pennsylvania. You just need to file a Certificate of Organization and a docketing statement with the Bureau of Corporations and Charitable Organizations.

You could complete the paperwork yourself and pay the requisite fees to make your LLC a reality. But it can help to have experienced business lawyers in Philadelphia assist with the filing and its subtle legal matters.

Advantages of a Corporation

A corporation can control excess profits and use them to reinvest in the goods or services provided to customers or clients. The corporation also can use the excess profits to reward its shareholders. If a loss occurs, that also could be passed on to shareholders, though the president, CEO, and other executives and managers still can be paid salaries during years when losses occur. Forming a corporation helps to ensure some level of income even during bad years.

A corporation also provides your business entity the opportunity to eventually go public. You could list shares on a stock exchange and raise capital to fund your business ventures.

Disadvantages of a Corporation

You already know that a corporation has a more complicated creation process than an LLC, with the added irritation of dealing with annual corporate taxes. It is beneficial in many ways to enlist the help of experienced business attorneys and accountants.

Even if you are just a shareholder in a corporation, you could suffer financial losses during a bad year: if the corporation goes bankrupt, the shares become worthless. That partly is why the federal government has bailed out corporations in the past to help prevent them from filing for bankruptcy.

How to Create a Pennsylvania Corporation?

It takes more legwork and effort to incorporate in Pennsylvania and other states. You need to choose a corporate name that is unique, and readily identifiable when compared to other corporations.

The corporation must have an address and a registered agent. The registered agent could be an individual, such as a business attorney, who has a legal address in Pennsylvania. The agent also could be a business entity that can do business in Pennsylvania.

You will need to create corporate bylaws and appoint directors. After doing that, you can hold your first board meeting to officially name directors and adopt the bylaws.

You can file the articles of incorporation at the Pennsylvania Department of State. Afterward, you need to issue shares to your shareholders. Then you are a true corporation that might go public in the future.

Learn More from Experienced Business Lawyers in Philadelphia at Sidkoff, Pincus & Green

The experienced Philadelphia business lawyers at Sidkoff, Pincus & Green can help you choose and organize an LLC or a corporation in Pennsylvania. You can call 215-574-0600 or contact us online to schedule an initial consultation at our Philadelphia law office. We represent clients throughout Pennsylvania and New Jersey.

Can I Get Out of a Business Contract?

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You With a Business Contract.

A business contract between parties that is written and signed is a legally enforceable document. Signees generally cannot just leave the arrangement or void the contract at will.

In business, situations can change, and unforeseen circumstances can render one or both parties unable to honor their initial contractual agreements. Unfortunately, there are situations where one party purposely makes it difficult for the other to honor the contract.

A party can sometimes legally void their business agreement. Most of the time, breaching a contract comes with stiff financial penalties, legal costs, and possibly even litigation.

That is why it is important to have a business lawyer review a contract before it is signed. They may recommend including an escape clause in the agreement. This type of clause allows a party to terminate an agreement under certain predefined conditions lawfully.

If your contract did not have a termination clause, you might be able to still get out of the contract. There are some circumstances under which signees can void their agreement. It will still require legal action and an experienced lawyer.

Legally permissible reasons to void a business contract include the following.

Breach of Contract

If two or more parties sign a business contract and one signee unlawfully breaches the agreement, the other parties may not be required to fulfill their contractual obligations. The alleged breach must be proved in court. In a legal sense, a breach occurs when a party acts contrary to contract terms, refuses to maintain its contractual obligations, or prevents other parties from fulfilling their responsibilities.

Incapacity or Death

Contracts are typically nullified if a signee becomes incapacitated. This stipulation should be written into the contract terms. Generally, if a signee is deemed mentally incapable of maintaining the agreement, they are excused from the legal consequences of premature contract termination. In addition, deceased individuals are not held accountable to contract terms.

Fraud or Misrepresentation

If the contract is found to have been based on fraudulent or misrepresented information, the party experiencing the fraud or misrepresentation will have to prove it in court to void the contract. This process can be time-consuming and costly.

Impossible to Fulfill

If fulfilling your contractual obligation is deemed impossible, the contract can be lawfully terminated. However, the circumstances for voiding a contract for “impossibility to perform” are rare. Death and incapacity are legitimate reasons for making a contract impossible to perform. Traumatic and unexpected events, such as car accidents or natural disasters, may also be found legitimate reasons for making a business contract impossible to fulfill.

As stated previously, the best way to get out of a business contract is to have a termination clause built into the agreement, with predefined conditions that are reasonable and realistic. If that is not the case, a calm sit-down discussion involving all parties, led by an experienced lawyer, can result in negotiations and solutions fair to both parties.

Sometimes, it could even be as simple as asking the other party to allow you to void the contract. Smart business owners know that goodwill between business partners is worth more than going to court for a breach of contract. It may be possible to get out of your business contract for a fee or possibly for free. Let your lawyer lead the way.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You With a Business Contract

Our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. help businesses function smoothly and effectively under the law. If you are a business owner and need help with a contract or other legal matters, contact us online or call us at 215-574-0600 today. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

What Should I Do if My Company Gets Sued?

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help if Your Business Is Being Sued.

Businesses of all sizes and types are vulnerable to lawsuits. If the lawsuit progresses to a courtroom, there may be devastating effects on the company. It may hamper a business’s finances and funding, ability to operate normally, and even its reputation among customers and business partners.

Many smaller businesses do not have the luxury of in-house legal counsel. They may be taken by complete surprise when an employee, client, vendor, insurer, financial partner, or another party files a lawsuit against them. Common causes of business litigation include:

Act Quickly

Review the case with a trusted and experienced business lawyer. They can advise you on how they can help you respond. They may even find incorrect information from the start and move to dismiss the lawsuit. If information is correct, they will quickly put a preservation order in place to preserve relevant data, including documents and electronic materials.

As a business owner, you should never communicate directly with the person or entity that has filed the lawsuit to try and resolve the issue. Any words or actions can be held against you in litigation; always let a business lawyer speak on your behalf.

Inform Your Insurer of the Complaint

Most businesses have several different types of insurance policies to cover a variety of situations. They should immediately contact the appropriate insurer. Insurance will often cover costs, and the insurance company may also use its own counsel defense. Even so, the business should also keep its own counsel informed of proceedings.

Have Legal Counsel

A lawsuit usually comes with a requirement to submit a written response within 30 days or another timeframe. That is another reason to quickly hire legal counsel. The written response needs to come from a lawyer and must include:

  • Admittance or denial of each allegation.
  • Defense and counter/cross-claims against the plaintiff or other defendants.
  • Whether you want a jury trial or alternative resolution.

Before submitting the response, your lawyer will discuss with you options for resolution, insurance coverage, potential counterclaims, such as holding another party responsible, dismissals of all or part of a complaint, and other issues.

Tips for During and After the Case

As you and your legal counsel work toward negotiation or litigation, follow these tips to help ensure a successful process:

  • Be quiet: Do not discuss the case with anyone but legal counsel and those in the company who need to know.
  • Be honest: Do not hide any information or cover anything up. Your lawyer should never be surprised by new information.
  • Be prompt and diligent: Your lawyer will ask for a lot of information, and you must respond quickly to avoid delays.
  • Stay focused on your business: A lawsuit may be stressful, but it does not mean you are guilty of something. Let the appropriate parties decide that while you focus on running a good and ethical business.
  • Learn: If a lawsuit comes up, then review your employment-related practices, policies, handbooks, and management training. You should make changes where necessary.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help if Your Business Is Being Sued

Our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. have the skill and knowledge to defend your business if you are being sued. We provide counsel on business conflicts and disputes involving employment, partnerships, contracts, and other related issues. For an initial consultation, contact us online or call us at 215-574-0600. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

How Should I Handle Business Disputes?

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You Resolve Business Disputes.

Business disputes will likely happen at some point, especially when there are high-value transactions involved. The more money that your business takes in, the more likely there will be internal or external disputes.

Business disputes should not cause duress unless they truly threaten your business and livelihood. There are many ways in which to handle the variety of business disputes that might arise. Most can resolve disputes outside of a courtroom. However, if business litigation is inevitable, an experienced lawyer will help you get the best possible outcome.

Additionally, many business disputes could be settled with the help of experienced third parties. A mediator could help two or more sides in a dispute to reach an amicable agreement that resolves the matter. An arbitrator could hear both sides of a business dispute and then render a decision by which both sides must abide.

Disputes with workers might have to go through the respective state agencies. They also might go through state or federal commissions tasked with handling such disputes. For example, if a worker files a discrimination claim, the federal Equal Employment Opportunity Commission (EEOC) would have to investigate before any kind of lawsuit might be filed against your business.

What Are Some Common Business Disputes?

Business disputes could be internal, external, or a combination of the two. The dispute might be with a business partner and one or more workers. It might be due to a contractual disagreement with another party. No matter the cause, the result usually means a negative impact on your business endeavors.

The four most commonly occurring business disputes include:

  • Partnership disagreements.
  • Disputes between two or more businesses.
  • Financial or contractual breaches.
  • Employment disagreements.

Partnership disagreements usually are the most common of all business disputes. Disagreements regarding business direction, finances, leadership changes, and hiring issues are common sources of partnership disputes. A breach of contract also might trigger an internal dispute among business partners.

Outside of the business, breaches of contract also commonly trigger legal disputes with other business entities. The breach might involve finances, products, or the improper delivery of services. Whatever the contractual obligation, external business disputes often arise.

Employment disputes often involve issues with pay or discrimination claims by one or more workers. Your business also might be on the receiving end of a discrimination complaint that may or may not have merit.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You Today

If you are in the midst of a business dispute, our Philadelphia business lawyers and Sidkoff, Pincus & Green P.C. can help you resolve the matter. Call us at 215-574-0600 or contact us online to schedule an initial consultation. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.