Oct162012

” The most common issues small businesses face are the failure to protect themselves legally through proper documentation.”

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Senen Garcia, Esq.
SG Law Group
Founder

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Senen Garcia, Esq. is an experienced attorney based in Miami, Florida. SG Law Group, where Mr. Garcia is a Senior Partner, represents clients in corporate; real estate; estate planning; and property claims matters.

He has been involved in the legal community by his membership in the Cuban American Bar Association and Treasurer of the Miami Alumni Chapter of Phi Alpha Delta, Law Fraternity. He is also a past member of the American Bar Association and the Defense Research Institute.

MO: What initially attracted you to the field of law?

Senen: I was originally interested because of the simple concept of helping people. However, it was after an experience within a business I was running that convinced me to join. I was seeking to bring in sales representatives for this particular business. We had selected a sales rep that claimed to have a wealth of experience and would bring in a great deal of business. Unfortunately, that individual did anything but generate business. He first took advantage of my then limited knowledge and coerced me into signing a contract that was detrimental to the company. He then attempted to give me bad advice that, if considered, would have put me in personal mess. As a result of his devious exploits, the company was forced to close. It was because of his actions that I made the decision to move forward with law school.

MO: How can a business determine if forming as an LLC is better than forming as a corporation?

Senen: Well, there are various differences between the two structures. The main difference is the transferability of ownership. Contrary to popular belief, LLC’s are not corporations. They are partnerships with corporate characteristics. As partnerships, they are designed to reduce and/or limit ownership transfers outside of the existing partners. Therefore, if owners of a company are seeking to restrict ownership transfers then LLC’s may be the better option.

MO: What are the most common issues you see small businesses face and how can these issues be corrected or avoided altogether?

Senen: The most common issues small businesses face are the failure to protect themselves legally through proper documentation. Many small businesses enter into agreements daily from selling ownership interests to purchasing equipment. While they hope for the best and believe they will get what they need, many times it does not always work out that way. Unfortunately, without a properly drafted agreement, many small businesses are left without any protection and exposed to potential fallout as a result. The best solution is to make sure any transactions is both properly analyzed and is in writing. This will protect small businesses from any problems which may arise.

MO: I was surprised to read that an initial consultation with your firm is free. What influenced your decision to offer this service free of charge?

Senen: Many small businesses want to get to know their professionals who will be assisting them in their business. I simply want to give them that opportunity to get know me. Additionally, I want my prospective clients to know my main goal is to help them.

MO: What tips would you give to first time entrepreneurs looking to start their own business?

Senen: Well, the first step I would do is to make sure they select the right structure for them. Following the structure selection, I would consider additional documentation if they plan to have partners. Now, if they have not done so already, entrepreneurs should consider having a business plan to help keep focus on the functionality of the business. Finally, I would also consider hiring a good accountant to keep track of the finances as most small business owners do not have time to do so and the task is extremely important.

 

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