5 Things Your Business Needs

Small Business Owners

You’ve always wanted to own your own business.  You may have one great idea, or you may have one-hundred good ideas; or you may just be tired of working for someone else.

Regardless of your reasons, you’ve decided to open your doors and you aren’t really sure where to start; or perhaps you’ve already opened your doors and need guidance. 

Let’s discuss 5 things your business needs.

Business Plan

I know the first thing you think you need is money, but it isn't.  The first thing you need is a Business Plan.  You wouldn’t start building a house without drafting a set of blueprints first, would you? 

Your business plan is the framework for your business where you set business goals, identify the purpose of the business, and define your market industry.  How to Write a Business Plan

Formation Agreement

As we have previously discussed, your new business is accident-prone and you’ll want to take steps to protect yourself from your business’s liabilities.  When you select a business structure, you’ll draft a Formation Agreement, which essentially is an agreement between you and the business regarding how the liabilities will be handled.  Select a Business Structure

Startup Money

With a business plan and structure, now you need money.  There are several options available for financing your start-up expenses, the key is choosing one that is right for you.

The most common option is to obtain a small business loan or grant, but anyone that considers financing you is going to want to see your business plan.  Find Loans or Grants

Operation Manual

Drafting an Operation Manual will give you and your employees direction in your day-to-day operations.  It should outline the procedures for performing certain tasks, and provide structure for the management of personnel. 

Business Attorney

If you own, or plan to own, a business, then you need a business attorney that can help you draft the documents necessary to get your business off the ground.

Your business attorney can assist you in drafting your business plan and increase the likelihood that a lender will take a chance on your dream.  Your business attorney can help protect your family’s assets if the business can’t survive this economic climate.

Most importantly, your business attorney can give you the tools to succeed.

--Authored by Matthew L. Harris, Esq.,

Matthew Harris Law - Business Law Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322

Attorney@MatthewHarrisLaw.com 

(806) 702-4852 

www.MatthewHarrisLaw.com

How to Avoid Jury Duty

Know Your Enemy

You’ve probably heard the 12 people seated in the jury box referred to as being “too stupid to get out of jury duty.”

Rule #1 of warfare is to know your enemy so that you can defeat him.  Before I can teach you how to avoid Jury Duty, you need to learn the reasons that your valuable time is being wasted.  If you know the reasons for Jury Duty, then you’ll be better prepared for battle.

Why Do We Even Have Juries?

Many people forget that we didn’t always have jury trials in this country.  A long time ago, some people decided that they were tired of not having power over anyone so they started a ruckus against the guy that was in charge at the time.

At the time, he was responsible for the Court System and was doing everyone a favor since he oversaw it personally.  He was a great guy that even volunteered to be the Judge AND Jury.  He would sit at the head of the Court, listen to all of that boring evidence that we despise, and then issue a ruling.

Revolutionary War

Well, those people that didn’t like his style decided that they wanted to be the jury since they were super power-hungry and just wanted to finally be in charge of something for a change.

They didn’t ask us how we felt about it or even consider how we would feel about being burdened with these extra responsibilities.  In fact, I bet they didn’t even consider that some people liked the old system and wouldn’t want to be a juror.

So this ruckus that they started with the guy in charge turned out to be a big deal and even cost thousands of lives.  Literally, thousands of men died fighting for jury duty; stupid right?

The Outcome

Well, because of their selfish jury-loving ways, the main guy in charge that had volunteered to act as Judge and Jury got the boot.  Those stupid jury-lovers got what they wanted.

There wasn’t anything wrong with the old system.  I mean how much simpler could it get than to go to one guy for everything?  His ruling was final.  Appeal?  Forget about it!  I know some people got imprisoned if he was feeling especially grumpy that day, and sure he may have executed some people mistakenly, but that’s no reason for us to have jury duty.

So now that you know your enemy, the reasons we got stuck with jury duty, and the thousands of men that died thinking we wanted the freedom to govern ourselves, you’re ready to avoid jury duty. 

It’s this simple: just don’t go.  Sure you could go to jail, but in that case just demand a jury trial because those people will definitely be sympathetic to your pain...

 (*apply sarcasm and facetiousness liberally above)

--Authored by Matthew L. Harris, Esq.,             

Matthew Harris Law - Civil Litigation Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322

Attorney@MatthewHarrisLaw.com 

(806) 702-4852 

www.MatthewHarrisLaw.com

Booby-Traps on Property

Trespassers Will Be Shot, Survivors Shot Twice

What would you think if I told you that it is legal under Texas law to set up booby-traps to protect your property?

That’s right, under Texas Law you have the right to use a booby-trap, the law says “device” but I prefer to call it a booby-trap, to protect your property.

Now the first questions in your mind are probably “What exactly do you mean by Booby-Trap?” and “What kind of property are we talking about?”

What is a Booby-Trap?

One of the most memorable cases I read in law school was about a homeowner, who had a problem with trespassers, who set up a "spring-gun" that would automatically fire a shotgun at knee height when a trespasser opened the door.

Well he got in trouble for that, but that’s not the kind of booby-trap we’re talking about.  When I say booby trap, you probably imagine some sort of Wil E. Coyote style contraption.  What we're talking about today though isn't some sort deep pit filled with alligators, or even a bear trap hidden under a dinner plate.

Specifically, your booby-trap can't be "designed to cause, or known by [you] to create a substantial risk of causing, death or serious bodily injury."  Also, use of the booby-trap must be reasonable under all of the circumstances as you believe them to be when installing it. 

I’m not going to give you opinions on what kinds of booby-traps would qualify here, but I imagine that it is something that would be an annoying deterrent rather than an actual “trap.”  (Do NOT trap people!)

Use of Force

If your booby-trap constitutes the use of force on anyone, then you must take great care and consideration before deploying it because use of force requires that you reasonably believe that force is immediately necessary.  

If your booby-trap uses force on someone that it wasn’t reasonable to use force on (child wanders on your property) then you will probably have your own crime to answer for.

What Kind of Property?

Under Texas Law, you can use your booby-trap (“device”) to protect both land and tangible, movable property.  However, you can’t set up booby-traps to protect just any property, you must be in lawful possession of it. 

Additionally, Texas Law allows you to protect the property of a third person if you reasonably believe that they requested your protection; you have a legal duty to protect it, or if the third party is your spouse, parent, child, resides with you, or is under your care.

Source: Tex. Pen. Code §§ 9.41, 9.43, & 9.44

--Authored by Matthew L. Harris, Esq.,

Matthew Harris Law - Property Law Division & Criminal Defense Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322

Attorney@MatthewHarrisLaw.com 

(806) 702-4852 

www.MatthewHarrisLaw.com

Your Accident Prone Baby Business

A Dream Come True

When you were just a kid, you knew that you wanted one someday.  You talked about all of the great things it would do for you one day.  You even went as far as picking out a name.

We're talking about owning your own business of course.  However, just like a baby, new businesses are sometimes prone to accidents too.

Except, when your baby has an accident, you don’t lose sleep wondering whether you’ll be able to keep your house.

Cover Your Assets

If you’re considering owning, or if you already own, your own business, then you should consider protecting yourself from the liabilities of your business.  Otherwise, you may find yourself paying for a long time for a simple business decision.

Under Texas law, you can organize your business structure in a manner that protects you personally from the debts of your company.  Some of these structures are: Corporations (Inc.), Limited Partnerships (Ltd.), and Limited Liability Companies (LLC).

Selecting a business structure depends on your Management plan, long-term goals, investment options, and desired tax methods.  (Personally, I prefer paying fewer taxes)

How Bad Could it Be?

Let’s pretend for a moment that you’re considering opening up your own flower shop.  You enter into a 1-year lease for your storefront, you negotiate a contract for a steady supply of daisies, and you lease a billboard for advertisement.

Since you don’t want to waste time with limiting your liabilities, you decide to just start ordering everything with personal checks, signing leases in your name, and entering into contracts as an individual.

Unfortunately, business isn’t doing so hot and after a few months you have to close up your shop.  After closing the doors, your business mail starts showing up at your house and those companies are demanding that you are personally liable for the company’s debts since on paper, it just looks like you’re an eccentric individual with a serious flower addiction.

What Else Could You Do?

Let’s go back and imagine that before you started signing your life away, you organized as a Limited Liability Company (LLC).  Then, instead of signing your own name on all of those leases and contracts, you signed your company’s name as the responsible party.

Now fast forward to you closing your doors; it’s like the business was the one that entered into all of those obligations instead of you.  When the creditors come calling, they come looking to liquidate the company’s assets and not your personal assets.

Get yourself some protection from your baby and you’ll get a little better sleep at night.

--Authored by Matthew L. Harris, Esq.,

Matthew Harris Law - Business Law Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322

Attorney@MatthewHarrisLaw.com 

(806) 702-4852 

www.MatthewHarrisLaw.com

Trust Me!

Trusts Aren’t for Rich People

When I try to convince my family and friends that they should consider setting up a Trust Fund for their children, I always get the same reaction. 

That reaction is a puzzled look followed by, “What the heck are you talking about?  I ain’t rich!”

Most people are under the impression that a Trust is only needed if you have great wealth, but I realize the reason they’ve fallen under that belief is because they do not realize what a Trust is, or what the purpose is behind the creation of a Trust.

What is a Trust?

Very simply, a Trust is created when you give something to Person A (usually money), so that Person B can use it.  Person A, who manages and protects the thing given, is called the Trustee, and Person B, who gets the benefit of the thing given, is called the Beneficiary.

I got my son a piggy bank, (he calls it his “money pig”), and I occasionally put loose change into it.  With every dime I drop in, he tells me of all the things he’s going to buy, but I remind him that all of this money is for college.  The money pig is a Trustee, and my son is a Beneficiary.

When you create a Trust, you get to set the conditions on which the Trustee can give the benefits to the Beneficiary.  Just as above, I set the conditions so that my son only gets the benefits if he is using it for education.

Why Should I Create a Trust?

Most often, Trusts are created in a Will so any money that is passed on to heirs will have some management.  You wouldn’t give a teenager a big pile of cash and just tell them to spend it wisely would you?  Setting conditions on your terms creates security even when you’re gone.

A very common Trust scheme is the HEMS Trust, which allows the Trustee to provide benefits to the Beneficiary for Health, Education, Maintenance, and Support.  When the Beneficiary has to justify the expenses, it prevents them from blowing it all on a fancy car or letting them put it all in their bank account where creditors can come after it.

What if I Don’t Have a Lot of Money?

You don’t have to have a lot of money to want to protect your future heirs.  Also, consider that just because you don’t have much money now, doesn’t mean that you won’t have a lot of money when you pass away.

When you pass away, there could be a life insurance policy, retirement account, or your estate could receive a large settlement if you pass away in an accident at someone else’s hands. 

The point is, setting up a Trust doesn’t take a lot of time or money and provides many benefits and protections for your loved ones when you’re no longer here to look after them.

--Authored by Matthew L. Harris, Esq.,

Matthew Harris Law - Estate Management Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322, 

Attorney@MatthewHarrisLaw.com 

(806) 702-4852 

www.MatthewHarrisLaw.com

Lien On Me

The Scenario

You notice your brakes are squeaking so you take your car to the shop to have them checked. You and the mechanic discuss what work needs to be done and he gives you a written estimate.

A few days later, the mechanic calls you and informs you that your car is ready.  You arrive at the shop and the mechanic hands you a bill for the price you both agreed on.  However, during the last several days, a family emergency has arisen and you can no longer afford to pay the total.  So, now what?

Mechanic’s Lien

A mechanic’s lien may have been created.  In Texas, if a person has furnished labor and repairs and has not been paid for those services, a lien arises against the vehicle.

A mechanic’s lien is only created when the registered owner of the vehicle is given a written statement of the services and charges and the mechanic has only completed that work which was previously agreed upon by the customer.

Enforcement

Mechanic’s liens are enforced through judicial foreclosure sales.  Therefore, the mechanic must file suit asserting the lien against the registered owner.

The court must then determine if all of the statutory requirements have been met and that no other party has a superior right to the property.  If the court finds the mechanic has first priority and the requirements have been met, the court will order the vehicle to be sold at a foreclosure sale.

The proceeds of the sale will then be applied to the amount owed to the mechanic and any amount left over will be given to the registered owner.

Types of Property

The scenario above only discusses a lien with regard to a car in a repair shop.  However, a mechanic’s lien may also be created in regard to other property.

Regarding real property, a mechanic’s lien may be known as a "construction lien."  For those who provide supplies and materials to other’s without payment, a materialman’s lien or "supplier’s lien" may attach.  All of these liens are created and enforced exactly the same but have different names to clarify what property they attach to.

What Can You Do?

You should discuss your situation with the mechanic and work out a payment plan if possible.  Most companies and individuals will understand that situations arise that cause financial hardships and are willing to work with you on payments.

It is important to know that these liens exist and that the mechanic may in fact have a superior right to your property than you do.  When I say “superior right,” I mean that the mechanic can keep your vehicle until you pay off the balance.

--Authored by Matthew L. Harris, Esq.,

Matthew Harris Law - Property Law Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322, 

Attorney@MatthewHarrisLaw.com

(806) 702-4852 

www.MatthewHarrisLaw.com

Non-Police Interrogations

Use of Interrogation

When the police interrogate you, they must inform you of certain rights (remain silent, attorney, etc.), but not all interrogations are performed by police.  Sometimes interrogations are performed by store employees, your boss, or even a neighbor, and they aren't required to inform you of your constitutional rights. 

However, even though the police aren't conducting these interrogations, and you haven't been informed of your rights, confessions obtained in this manner can still be used against you in a criminal trial.

The Confession

Let's imagine you are shopping with a friend, and unbeknownst to you, the friend decides to shoplift.  As you are leaving the store, an employee grabs you both and takes you to an interrogation room.

Part of their interrogation includes a "Civil Recovery Form" where they list the things that they suspect you or your friend of taking and have you sign it.  At the bottom of this form is a small disclaimer that says that you understand that this form "will be used in criminal prosecution."

It amounts to a written confession and is very persuasive to a jury. 

Officers, not Police

As merchants, they do have a limited power to detain you if they suspect you of shoplifting, but you're better off demanding that they call the police instead of letting a retail employee convert your words into a report, coerce you into signing it, and then letting a jury of your peers decide your fate upon hearing it.

The Loss Prevention Officers are not Police Officers.  They are merely private citizens and you do not have to talk to them any more than you have to talk to a neighbor that accuses you of stealing his newspaper.  On that same note, your neighbor doesn't have to inform you of your constitutional rights before attempting to interrogate you.

The Solution

The person in the best position to protect your rights is you.  Know your rights and do not be afraid to exercise them regardless of whether it is a retail employee, your boss, or the police.  After identifying yourself; Remain Silent, Do Not Consent to Searches, and Demand Your Attorney Be Present During Any Questioning.

--Authored by Matthew L. Harris, Esq.,

Matthew Harris Law - Criminal Law Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322, 

Attorney@MatthewHarrisLaw.com 

(806) 702-4852

www.MatthewHarrisLaw.com

Texas No-Refusal Weekend

Refuse What?

For the first time in history, an entire state, Texas, will implement the "no-refusal" policy concerning suspicion of Driving/Boating While Intoxicated.  This policy is regularly implemented at the city or county level during holiday weekends, but over the 2011 4th of July weekend, the entire state will implement this policy.

Texas DWI Law

In Texas, if you are suspected of being intoxicated while driving or boating, you can be asked to perform a Breathalyzer Test.  If you register .08 Blood Alcohol Content (BAC) or higher, then you are presumptively impaired and arrested on Driving/Boating While Intoxicated.

You can refuse to submit to this test, but you will automatically lose your driver's license for 180 days just for refusing.  However, some people see it as a gamble to get out of a DWI/BWI conviction because there will be one less piece of evidence to use against them at trial.

Blood Warrant

In Texas, if you refuse to submit to a breathalyzer test to determine your BAC the police must obtain a warrant to draw blood and have it analyzed to determine your BAC.

This weekend, starting at 6pm, Friday, July 1, and ending at 6am, Tuesday, July 5th, all Texas police departments will have a Judge or Magistrate on standby to expeditiously sign these warrants so that police can obtain a blood sample from anyone that refuses to submit to the breathalyzer test.

Safety

The most important thing to take from this is that drinking and driving/boating is stupid and will get someone else, or yourself, killed; so don't do it.  

If you choose to refuse a search, do so respectfully, but be ready for a needle stick in your arm.  If you get arrested though, don't expect to call a mulligan and just give up driving for 6 months because the police will be cracking down.

--Authored by Matthew L. Harris, Esq.,

Matthew Harris Law - Criminal Law Division

1001 Main Street, Suite 806, Lubbock, Texas, 79401-3322, 

Attorney@MatthewHarrisLaw.com 

(806) 702-4852

www.MatthewHarrisLaw.com