Business Law and Civil Litigation FAQ
What is civil litigation?
Civil litigation is a legal dispute between two or more parties seeking monetary damages. Those involved in civil litigation are seeking money rather than having the other party punished criminally.
When starting a new business, several key decisions must be made regarding the organization, financing, management, and operation of the business. First, research your business idea and prepare a business plan. Once you’ve decided to go ahead with your idea, you will need to determine the legal structure of your business (whether a sole proprietorship, partnership, LLC, corporation, non-profit, or a cooperative) and obtain financing for the start-up costs.
After your business is formed, it must be registered with your state or local government – typically through filing a fictitious business name, or “Doing Business As,” statement – and obtain any permits and licenses required by your city or county. Certain industries require additional permits, such as a seller’s permit, or a license to sell alcohol. Finally, businesses must register for state and local taxes, typically including obtaining a tax identification number from the IRS. Upon formation of the business, then it is usually recommended the business establish policies and procedures for employment, operations, recordkeeping, and other important matters.
Does a contract have to be in writing to be enforced?
No, a written contract is not required to create all contracts. The Statute of Frauds (S.O.F.) requires, with certain exceptions, that specific contracts be recorded in writing in order to be enforced. The S.O.F. has been implemented to reduce and prevent fraud in contracts. The S.O.F. typically requires that all contracts for the sale of goods over five hundred dollars be in writing to be enforceable.
For answers to similar questions and more, please contact Allen Gabe Law, P.C. at (847) 241-5000, Ext 121.