Did you begin the new year with the goal of starting a new business in Virginia? If so, you’ll want to take all the necessary steps to get your business set up correctly. From deciding on the business structure to obtaining licenses and permits, there is some legwork involved. We’ll cover what you need to do to get your business up and running in Virginia.
Over the last 20 years, limited liability companies have become the preferred way of doing business for many small and medium-size enterprises. That is primarily due to the fact that LLCs are easier to form than corporations. Unfortunately, that simplicity lulls many people into trying to do it themselves or working with forms provided online. Sure, if your LLC is only going to operate a kid’s lemonade stand for a couple of months over the summer, that might be good enough. But for most people engaged in real businesses with significant risks, it’s not.
The Federal Trade Commission (FTC) recently released a proposed rule which, if adopted, will broadly ban the use of non-compete agreements with workers throughout the U.S.
Employers face the constant challenge of regulatory requirements, which keep changing. To further complicate matters, compliance with employment obligations to employees varies from the employer’s home state to other states where remote employees work. An employer’s compliance failure, regardless of whether it was inadvertent or minor, could provide an employee with an opportunity for an employee to hold their employer liable for statutory violations. Employers and their employees should understand the rules for overtime pay, who can be a salaried employee and rules for employee classification, and what happens if wages are not properly paid.
Massachusetts, like Maryland and the District of Columbia (which has a liquidated damages provision requiring 4 times the wages due), has treble damages when wages are late. According to the Massachusetts statute, the terminated employee must be paid all wages due on the date of discharge, while an employee who resigns must be paid by the next regularly scheduled payroll after the last day of employment.
Doctors, lawyers, accountants and other professionals face particular challenges in their succession planning. Unplanned exits are at high risk for losing clients, revenue, and good will. Client replacement costs and other continuity challenges abound for the remaining partners and staff. On the other hand, an action plan to maximize profit in the sale of a practice typically takes 18-24 months. In our multidisciplinary practice, we know from experience that the most effective succession planning integrates legal planning techniques, personal financial and retirement planning, and in some instances, finding a business broker.
As the pandemic wears on and effective vaccines roll out to many adults, employers and employees are hoping to stop wearing masks in the workplace. To reduce labor risks, we advise employers to keep a workplace mask policy in place, remind all employees that the policy remains in effect, and directly address employees who do not cooperate.
As we begin 2021, we are still faced with Covid-19 affecting every part of our lives. While hope is on the horizon as vaccines are being produced and distributed, we must continue to proceed thoughtfully as we face these challenges. Besides the changes that the vaccine will bring, there are several important updates from the recent Stimulus Bill which was signed into law at the end of 2020:
As the United States (and many parts of the world) experiences a new rise in Covid-19 cases, Maryland Governor Hogan, by Executive Order, and Montgomery County have implemented new restrictive orders, effective November 10th, to strive to flatten the curve. These orders will affect many businesses throughout the state and will likely impact your actions as a business owner and employer, until these restrictions can be relaxed again.