Elements of a Solid Consulting Agreement

by Abcotten in Business Law

Whether your business is to offer consulting services to others or whether your businesses needs to procure the services of a consultant, you should be clear on what terms, at a minimum, need to be included in your contact. Note, please do your due diligence when hiring any consultant, even when you receive a referral.

  • Defined Objectives of the Parties
  • Scope of Services: tightly define the consultant’s specific duties and responsibilities with particularities.
  • Sign-off provision: Enables you to sign-off on each stage of the project in order to ensure that you have been satisfied with the work as it progresses.
  • Fees, Costs, and Expenses should be articulated in detail.
  • Project Timeline: A specific timeline for when the project will start and when the project will end and must include when all payments to the consultant will be made during the course of the project.
  • Independent Contractor Clause: Ensure the consulting agreement meets the independent contractor standard as defined by Mississippi state law.
  • Insurance: Depending on the nature of their business, the consultant may need to carry certain insurances.
  • Non-compete provision: Depending on the nature of the consulting services provided, this clause prohibits the consultant from providing work for any competitors to your business within a certain geographical range and for a certain period of time.

COVID-19 and New Home Businesses: Legal Considerations

by Abcotten in Business Law

Due to COVID-19, many people are finding themselves with a lot more free time, and new entrepreneurs are on the rise. Congrats! As you consider launching your business from your kitchen table or favorite comfortable chair, let’s review a few legal considerations for home businesses.

Selecting a Business Structure

Many home businesses operate as sole proprietors. This means the individual running the business is the one who files a Schedule C, which is a tax form. Depending on the particulars of your business, you may want to consider whether an LLC, partnership, or corporation is the right path for you to take. To determine this, it is best that you talk to an attorney and an accountant to see what business structure works best for your enterprise both now and in the immediate future. This inquiry will need to consider the operations of your business, of course, take into consideration whether your business operates a fleet of vehicles, has employees, and/or is engaged in a trade or commerce where the liability risks are greater.

Additionally, if your business involves more than one owner then a sole proprietorship is probably not the business structure that fits best. For any business structure other than a sole proprietorship, your enterprise will be required to get a federal tax identification number. In many cases, getting a federal tax identification number will allow you to protect your individual privacy by not having to give your social security number to either vendors or customers for their records.

Protect Your Business Name

What you name your business is important. If you plan to trademark your business’ name then utilize the national trademark office’s website. There are a number of companies that do the search for you on a fixed fee basis.

Preparation of Contracts and Agreements

At the outset and along with everything else you will need to do to make your home business successful, you will also need to focus on getting the right contracts and agreements prepared so they are ready for when you open your business. Contractual agreements let everyone know what to expect and how to deal with potential issues.