Monthly Archives: February 2013

Selling on eBay and Payments through Paypal

28 Thursday Feb 2013

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Thinking of selling a high priced item on eBay? Here are a couple of things to consider:
1) Require that your bidders have a positive eBay history. Example: I listed my classic 1962 MGB on eBay. Some spammer or jokester outbid my topbidder by $100 then tried to scam me. The "top bidder" had no bid history and ruined what would have been a successful listing. I was over my reserve.
2) Payments with Paypal. Note this hasn't been personally verified, but have some disclaimer in your listing that buyer bears the risk of damage during shipping and takes in "as-is" condition. I've heard examples (note not verified) that Paypal process says if product is damaged that the recipient can have their funds returned. How do you handle product being returned? What if Buyer damaged the product? How do you prove? Get insurance for the delivery from the carrier. I also had this occur. Thankfully I had insurance and transferred to a cooperative buyer to recupe.
3) Terms of Sale: Put in your listing your terms (how paid, condition, etc). And give proper disclosure of defects.
4) Receipts & paypal: when I sold an item that was for pick-up only. I had the buyer sign an acknowledgement they received the product and the date and the terms of the sale were completed. In essence a bill of sale. When you mail items, require the purchaser to sign for the delivery.
Good luck.

How to start a Sole Proprietorship

27 Wednesday Feb 2013

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Sole proprietorship: To be legitimate, here’s a start for what forms you need. If you’re going legit (recommended) go all the way legitmate.

A sole proprietorship is owned by one person. If you have more than one person, you become a partnership. This list of forms is not exhaustive, but it’s a good start. Certain businesses require additional forms (eg. licensed professions, hazardous industries).

1)      Assumed name (DBA) at the Register of Deeds. Costs $26 (they don’t take personal checks). Form at their office or on www.forsythdeeds.com

2)      Tax id Number with IRS (if you don’t want to be giving your social to every supplier and customer who gives you a 1099)

3)      Privilege License for municipality http://www.cityofws.org/Home/Departments/FinancialManagementServices/RevenueCollections

4)      State Privilege License  http://www.dor.state.nc.us/downloads/privilege.html 

5)      Determine if you need to have a NC sales tax id & file sales tax returns http://www.dor.state.nc.us/downloads/sales.html

6)      Run a separate bank account in the name of your DBA and using your Tax EIN for business. No commingling.

7)      Quarterly Taxes:

1.      NC – http://www.dor.state.nc.us/downloads/individual.html

2.      Fed/IRS- http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes

I recommend keeping a new, separate bank account to hold your tax withholdings for quarterly estimated taxes to State & Feds. So if you make $30,000 in a quarter, put your percentage of fed and state tax rate into that account. Use the account to pay quarterly tax estimates on time. That way you don’t overspend and get in a bind on quarterly tax payment deadlines.

 

If you are concerned about protecting personal liability, consider forming a corporate entity. Sanders Law Firm, PLLC can incorporate/organize your business starting at $350.00 plus Secretary of State fees.

 

If you have employees or intend, you will have a lot of other forms to fill out. Sanders Law Firm PLLC uses a payroll company to make life easier.

 

If you need tax advice to determine the most advantageous method to minimize your tax burden, contact a CPA.

 

Call Sanders Law Firm to help you draft legal contracts, estimates, collection cases, and litigate matters for you and your business.

 

W. Kirk Sanders, Attorney

Sanders Law Firm, PLLC

326 N. Spring Street

Winston-Salem, NC 27101

Telephone:  (336)724-4707

Facsimile:  (336)724-2077

www.kirksanderslaw.com

Injury to Temporary Staffing Employee Law Change

06 Wednesday Feb 2013

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Issue: Can an employee of a temporary staffing agency sue the company where he’s performing services for negligence?

General Rules: 1) The temporary employee is the employee of the staffing agency. 2) Workers compensation prevents suits against employers beyond the scope of Workers Comp claims (except Woodson claims involving willful and wanton behavior). 3) A temporary staffing employee is not treated as an employee of the firm/company where he is performing services.  This is usually in the contract between the temp company and the firm/company that uses the temp.

Facts in Gregory v. Pearson (appellate decision): Mr. Gregory worked for temp company. Gregory was assigned to work for Cleveland County’s Solid Waste Management. While there he was run over by Cleveland County truck due to negligence of the driver. The contract between staffing company and county was that Gregory wasn’t an employee of County. If not an employee of the county, then the county is a 3rd party that can be sued outside of workers compensation.

Holding: the Employee can sue the company/firm where he is assigned because he’s not an employee.*

Repercussions: Without this ability to have an agreement as to who bears responsibility for workers compensation & benefits, the company using the temp may have to incur the cost. This could eliminate the need for temporary agencies.

*This is an appellate decision and could be heard and overturned by the N.C. Supreme Court

 

W. Kirk Sanders, Attorney

Sanders Law Firm, PLLC

326 N. Spring Street

Winston-Salem, NC 27101

Telephone:  (336)724-4707

Facsimile:  (336)724-2077

www.kirksanderslaw.com