Kelly Bagla - Go Legal Yourself!: Know Your Business Legal Lifecycle

Second Edition

Kelly Bagla, Esq.

Copyright 2021 by Kelly Bagla, Esq. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993, or fax (317) 572-4002.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data

Names: Bagla, Kelly, author.

Title: Go legal yourself! : know your business legal lifecycle / Kelly Bagla.

Description: 2nd edition. | Hoboken : Wiley, [2021] | Includes index.

Identifiers: LCCN 2020051119 (print) | LCCN 2020051120 (ebook) | ISBN 9781119745549 (hardback) | ISBN 9781119745563 (adobe pdf) | ISBN 9781119745556 (epub)

Subjects: LCSH: Small businessLaw and legislationUnited States.

Classification: LCC KF1659 .B34 2021 (print) | LCC KF1659 (ebook) | DDC 658.1/20973dc23

LC record available at https://lccn.loc.gov/2020051119

LC ebook record available at https://lccn.loc.gov/2020051120

Cover Design and Art By: Kate Brand Design

They say 2020 is the year of the woman. I dedicate this book to two women who have taught me that every year is the year of the woman.

My dedications go to my loving sister-in-law, Surinder Bagla, who taught me how to love the English language, and to my loving mother-in-law, Judy Calamungi, who taught me how to love the simple things in life.

Your love and support have forever changed my life!

If this book existed when I started my entrepreneurial career over 40 years ago when I began importing the first sheepskin boots into America, it would have saved me a lot of trouble.

The common thing all entrepreneurs share is the attitude, I won't do that until I need it.

Because the very nature of starting out on your own path implies you are limited in capital and all of your efforts are focused on product development, production, marketing, and deliveries, the last thing you want to do is spend money on legal fees, which can wait until we need those services.

I can still hear the words of my long-time lawyer: Brian, why do you always come to me when you are in trouble? Why don't you run things by me before you start out?

Robert Ringer wrote a hugely successful book, Winning through Intimidation, about how he kept getting left out of the deals he orchestrated in the real estate business, and the one line that resonated with me to the core was that a DETAIL will always come back to haunt you. I can't tell you how many times I had to fix a situation at great cost because, at the time, it didn't seem important to complete the legal documentation.

I still continue to get into new businesses and now the legal checklist is a standard part of getting organized, just as important as the product and marketing.

And this is where Kelly's book Go Legal Yourself is such a great resource for every aspiring business builder. In addition to all the start-up issues, she gives you a glimpse of what you are going to need as you grow more successful. From a legal and documentation standpoint, you can be ahead of the issues and not spend a fortune in remedying things you overlooked.

Best wishes on your journey.

Brian Smith

UGG Founder, and author of The Birth of a Brand, a roadmap

for entrepreneurs

If you get a chance to read any basic literature about chess, the simplest definition you will find is that it is a game of strategy and tactics. The strategy consists of setting midterm positioning advantages, whereas tactics focus on immediate maneuvers during the game. I have always thought running a business is a lot like playing chess, so it is only fitting that my clients affectionally gave me the name Queen of Business Law. In chess, unless you are looking a few moves ahead, you are doomed to fall into your opponent's trap. With each turn, you need to anticipate the moves that your opponent can make and the various options that you have. Similarly, in business, if you know the road ahead, you can anticipate industry changes or alteration in customer behavior, which will allow you to always be on the cutting edge. You can then build your business to outlast your competition and you can make the right moves, whether that's making a better mouse trap, growing your business, or choosing the right distribution channels.

As a business owner, I have firsthand knowledge of how hard it is to start a business, let alone make money at it. As an attorney, I also have firsthand knowledge as to what can go wrong with starting a business.

• Are you running a business and confused about what you need to do in your business from a legal perspective?
• Are you confused by the seeming never-ending list of legal considerations?

These are all issues that I have found to be common for all entrepreneurs. There is one thing that every entrepreneur and business owner has in common we know the pains and heartaches of running a business, and if we're lucky, we can eventually become successful. But wouldn't it be nice to know from the inception of your business how to run it successfully?