New York Small Business Law

Lack of Shareholder Agreement leaves Dentist's widow empty handed

Imke Ratschko — Mon, 20 Jun 2011 07:47:06 -0400

As New York Business Divorce reports today, the lack of a shareholder agreement caused a New York widow of a dentist, who was practicing dentistry in a professional corporation, to be left with nothing. Despite the fact that the deceased dentist was a 75% shareholder in the dentist professional corporation and his widow had found a dentist purchaser for the dentist practice offering $530,000, the minority dentist shareholder was able to defeat her and will likely be able to force her to sell her late husband's share in the business for $0. The reason for all this was the fact...

Can you be liable for third party defamatory comments about your competitor posted on your Blog?

Imke Ratschko — Tue, 14 Jun 2011 12:57:00 -0400

Most businesses now have a blog connected to their website. Blogs attract comments. What if a particular nasty comment is posted by a visitor about one of your competitors? Can the competitor come after you for defamation or unfair competition? New York's Highest Court has recently said, no, a business is not liable for the defamatory comment of a visitor on its blog (Shiamili v. Real Estate Group of N.Y., Inc). Communications Decency Act The court based its decision on Section 230 of the Communications Decency Act. This federal law provides that no provider of an interactive computer service shall...

Contracting by Email and the Statute of Frauds

Imke Ratschko — Mon, 13 Jun 2011 11:27:51 -0400

Email can actually save many agreements that would otherwise fall prey to the "statute of frauds". Let me explain. I know that many of you neglect to get their agreements and understandings in writing. And, on an emotional level, I understand why. It can seem off putting, too demanding and even insulting to new business partners to immediately have every understanding in writing. Even if you all plan to put your business deal into writing, it often gets postponed indefinitely for fear of not doing it exactly right, bickering over minute details, the time and money it takes to get...

New York State Sales Tax Information

Imke Ratschko — Thu, 09 Jun 2011 10:47:13 -0400

The New York State Department of Taxation and Finance just updated some of its very helpful information regarding business owners and their sales tax obligations. For a general overview, consult "Your responsibilities under the New York State and local sales and use tax laws." Other updated guidance: "How sales and use taxes apply to interior decorating and design services" "Record Keeping Requirements for Sales Tax Vendors" Knowledge of this material and your obligations is crucial, because a business owner can be held personally liable (i.e. no hiding behind corp or LLC) for sales tax obligations and there are numerous ugly...

The DOL Timesheet App and a Reminder on keeping Wage and Hour Records

Imke Ratschko — Mon, 06 Jun 2011 12:24:22 -0400

The Department of Labor recently released an app for workers to independently keep track of their hours worked, wages earned and breaks taken. According to their press release, "This app will help empower workers to understand and stand up for their rights when employers have denied their hard-earned pay." Obviously, this raises concern that the small business owner will soon find himself or herself in a dispute with employees over conflicting time records on the worker's smart phone versus the employer's records. A small business owner's first line of defense? Knowing its record keeping obligations and keeping such records in...