Global Law Guide

They say the only things in life that are certain are death and taxes. For the sole trader, this is definitely the case, and at times it can seem like an overbearing pressure. Thankfully, for the sole trader there are many ways in which you can minimise liability to income tax and leave more in your bank account at the end of the month. In this article, we will look at some of the key features of tax management from the perspective of the sole trader, and some of the ways in which the sole trader can minimise the legal consequences of his operation.

As a sole trader, you are usually accountable for your profits in terms of income tax. This can be particularly problematic, given that the structure of income tax in most jurisdictions is a fairly heavy burden on the citizen, particularly those with higher incomes. The first thing that should be considered is incorporation. As a corporate entity, you will be required to handle more paperwork, but ultimately it will save you money. Corporation tax on profits is lower than income tax in the majority of situations, and dividend income carries less taxable weight than other income, for example wages and salaries. The first thing to do, as a sole trader within the top income tax bracket, is to incorporate, which could potentially save thousands every year.

The sole trader must be aware of the fact that there are certain items that cannot be discounted from income. In fact, certain everyday items must be declared and must give rise to tax. For example, say a self-employed solicitor is given a bottle of fine wine by a particular client every year as thanks for his service. This wine, although not initially apparent, will usually require declaration for tax, on the basis that it is an ongoing gift or benefit arising from employment. It is therefore important to watch what is included and what is ignored from your tax return. If you are at all unsure, it is better to include an item and pay tax, rather than running the risk of neglecting to mention its existence. Alternatively, it may be a good idea to consult a specialist on the particular laws of your jurisdiction, and to determine whether or not it would be possible to avoid liability.

Another important thing to remember is that there may be certain personal capital gains liability for disposal of a primarily business asset. As a sole trader, this means you will be liable to account for the disposal of the asset and any capital gains at market value, which can be a costly business. Again, it is probably advisable to consult a tax lawyer or tax adviser to minimise liability on disposal and to manage your tax liability more effectively.

Tax law is a particularly intricate area of the law, and one that is in perpetual change. This means the small business owner is required to keep one eye on tax developments to avoid being caught out, which means there is less room for focus on the core areas of business and making money. Alternatively, the advice of a tax specialist can be invaluable in minimising overall liability and ultimately saving money from your tax bill every year.

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After much deliberation and discussion, the Supreme Court has returned a critical strike to the core of women’s rights in the abortion arena. The court in a 5-4 decision banned a medical procedure known as a partial-birth abortion or Dilation and Extraction. This abortion procedure was performed after the 20th week of pregnancy. While the pro-rights crowd is naturally upset over the ban, they are horrified over the fact that there are no exceptions to the ban that would enable a doctor to save the life of a woman if it was medically necessary to perform the procedure.

Doctors can face up to 2 years in prison if they are convicted of performing the procedures, which will greatly limit the numbers of doctors performing the procedures and likely increase the number of states placing bans of the entire abortion procedure as well. The decision came from a split Supreme Court, with two of the justices being hand picked by Bush himself. This is a cause of great concern, suggesting that the Supreme Court has turned into a very conservative place, despite the lack of support for Bush and many of his ideas and practices on a broader level. The Supreme Court’s involvement in politics is usually noted, but given the gravity of this decision it is clear where certain allegiances lie.

Is the Supreme Court really following the wishes of the majority, do they really have the legal right to determine that a medical decision can or cannot be performed? The anti-abortion camps in the GOP are happy following the decision and are busily looking for more ways to put a damper on the rights of women in regards to abortions. How will this decision be regarded when it comes election time, and the Presidential elections come around? What about the midterm elections next time they are scheduled?

Many people are left to wonder if the Supreme Court decision is truly a legal decision, or nothing more than a very carefully selected group of ultra conservative judge’s who are following Bush’s wishes and desires in regards to the case. The case was sitting before a panel of judge’s who seem to thrive off of the acceptance of Bush, and Bush was noted as being encouraged by the ruling and declaring it as a victory for his administration.

The court defended its decision by saying that it was doing nothing more than drawing a line between abortion and infanticide. There is a difference between killing a child, or an infant, and an abortion. One of the most notable differences is that a child or infant is not considered an infant until the first breath of air is taken into the lungs. An abortion does not allow the infant to take that first breath of air, therefore, removing the term infant from their being.

While it is noble that the Supreme Court is looking and seeking to protect all forms of life, they should also concern themselves with the lives of the mothers who carry babies, who should not be allowed to continue to term for medical reasons. There are numerous women each year who become pregnant who are unable physically to carry a child to term, and must abort the child, or risk their own life. What has the Supreme Court done in order to protect those mothers, or improve their quality of life?
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This is a very ‘hot button’ issue that keeps arising in the face of politicians everywhere in the country. What if anything should the government involve itself in for the issues of stem cell research? How far should the government press into the fields of medical science research? Should the government interfere at all, or stand back and come up with laws to handle the consequences of such research?

It comes into question, how many ordinary Americans really know and understand what stem cell research is, how it can effect our lives, and what does it have the ability to do in the future? With topics such as abortion being very hot and causing pressures on all sides, it only seems natural that stem cell research should cause just as much controversy. Many supporters argue that the research gathered will be able to save millions of lives, while those opposing the research all argue that they are killing thousands of innocent children in the process.

This brings the question, where do the embryos come from? The majority of the embryos used in the research come from couples that have donated them, following a treatment for infertility; there are often 10 or more embryos left over after such procedures, which can be put to use in the laboratory environment. The options for those embryos are limited; they can be preserved, adopted to a needy couple, destroyed, or donated to medical research.

The embryos are only a few mere days past conception when they are frozen, and are unable to sustain life in any form on their own. From a legal standpoint, they are not living humans, and are not an infant since legally an embryo becomes an infant once the first breath of air is taken. This leaves the questions of who has the right to determine what can happen to them.

The embryos are the building blocks of people, yet, they have no rights themselves. Whom do they belong to? Who is responsible for ensuring they are taken care of? Many consider the embryos being used in research as the same category as murder. Is it actually murder when the child is never born, and is only conceived in a test tube? Who should really make the decision about how these embryos should be handled?

The embryos themselves are rich in stem cells, which scientists have said can help cure some of the worst diseases and conditions in the world. This makes the concept very tempting, but is this dabbling in aspects of science that shouldn’t be used? Should humans really be trying to recreate whole body parts and organs from the stem cells in order to help a few, but at the expense of a few other lives?

The current administration has tried to place a ban on this research and block the use of the embryos. This has upset many supporters who feel this research is vital to the survival of the human race, while those who digress the ideas are upset that is has not been banned fully yet. Where is the better side to stand? Should we allow the government to meddle into the scientific aspects of medicine, or should we continue the research to save thousands, or millions of lives?

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We are likely to need legal help at least once a year, yet most of us do
not actively seek legal help.

This is borne out of data from a survey
conducted by Leo J. Shapiro & Associates, on behalf of the American Bar
Associations Section of Litigation, which shows that close to three
quarters of American adults experience some event during a twelve-month
period that may require the services of a lawyer. Over half of those who
needed an attorney chose not to hire one, and close to 80% of those yet to
experience legal problems gave strong indications they might go down the
same route.

Why all the doom and gloom? Price is the most sticking point
for most consumers. When it comes to hiring a lawyer, hourly fees of $100
up to $1000 are out of reach of most peoples budget. And then comes the
trepidation of searching for a good attorney and the right service: there
is a lot of uncertainty and confusion as what a lawyer will do, and how to
tell the good from the bad.

A legal plan may solve these problems and change the way you think of legal
services. Thanks to this arrangement, you can now talk to a lawyer whenever
you have a problem, without fear this will leave you out of pocket. In
fact, you dont even need to be embroiled in a legal problem to get legal
advice: just pick up the phone, call your attorney and get the necessary
legal advice susceptible of resolving any potential problems with
professional legal advice and follow-up, you can prevent ninety percent of
your legal questions becoming legal problems. Basic services such as the
drafting of your will, review of sample health contracts and writing
letters on your behalf are handled at no cost to you. If you want further
coverage to include family problems, such as a divorce or custody of
children, and any legal representation in court, then you simply pay a
premium and get more inclusive coverage.

Even if your plan doesnt cover complex legal matters, it can still save
you money on those sky-high attorney fees. Discounts of up to 20% are
offered on hourly and flat rates. Ultimately, its not all down to how much
you can save. Having an attorney readily available at all times gives you
peace of mind, in the knowledge that there is someone you can use on
retainer for advice and help on anything of legal nature.

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In cases where it is child custody is contested, family lawyers therapists and mediators can help get parents in this difficult situations, it is necessary that the plan developed is child centered so that their childrens interests are taken care of.

Most of the cases can be solved through a mediator, it might be a private one or someone sent by the court, if the couple is unable to reach a plan in the process of mediation next process that they could enter into is evaluation. Mediation takes place for 90 minutes in court-assigned cases, however, in order to have full discussion this time limit can be extended further. In case of private cases there is not time pressure.

Mediators help collect complete information about each parent and organize this information in a useful way. During mediation all history of both the parents is extremely useful. All aspects including childhood, past divorces, past history, parents history, parents martial status, siblings, relations with siblings, history of crime, domestic violence, etc. are also taken into consideration. You as a parent must be prepared to show yourself in the best possible light.

Mediators and evaluators look for red flags, which mean that there are certain details like dates etc. which do not match among both the clients. Mediators and evaluators then may challenge the dates and timelines. The more each can see with one anothers perspective, the more constructively proceedings will take place.

In order to be successful in presenting actual parenting plan, mediators and evaluators should try to make their clients understand that they should present themselves to be reasonable, articulate and flexible parents and that they should not in anyway disturb the court in anyway while proceedings are on.

At the time of evaluation, you should conduct a safety check on your clients. You have to inspect their homes and see whether things are generally in place. All the residents of the home should make themselves available for the interview and guests should leave within 10 minutes of arrival of the evaluator. Evaluator can ask for references of people you know, it would be better if you can furnish these immediately.

Plans that are not well thought off might turn out to be red flags, so preparing for evaluation in advance is necessary. There are special considerations offered by courts in cases where there is a history regarding domestic violence, abuse, etc.

Therefore, it is required that solid preparations are carried out for the purpose of mediation and evaluation, these can bring success. The client will not make any mistakes since the level of confidence would be higher. These tips will go a long way in maximizing chances of success in mediation and evaluation.

When you subscribe to a pre-paid legal service, you are likely to deal
with an attorney and a number of other individuals and organisations who
are involved in one way or another with the service. Its important to
understand the role of each participating party in a legal service plan,
particularly when youre unhappy with the service or when fee disputes or
any other litigation with your provider arises.

So, who is involved in your pre-paid legal arrangement?

Your Lawyer

You get to choose your attorney from a pool of attorneys in the network.
Your lawyer is your point of contact for any phone advice or office
consultation. He is the one who furnishes other legal services specified
in your written agreement with your provider: he drafts your will, reviews
simple contracts for you, writes letters on your behalf and makes phone
calls to adverse third parties.
If you are unsatisfied with the quality of work you are getting from your
current attorney in the network then you have the choice of choosing
alternate attorneys. You can also make a complaint to your providers
in-house charge of complaints.

If you benefit from legal services under a group plan scheme then there are
a number of parties who are involved in this scheme.
First the contracted firm, just as is the case with an individual plan, is
the one which provides all the legal help through its network of attorneys.
There are also two parties involved in the deal: a plan administrator and a
plan sponsor.

A plan sponsor is the organisation you are member of, which sponsors your
legal plan. Your sponsor can either choose to provide the legal services as
a fringe-benefit, as is the case with most employers, pre-charge for the
service – universities usually charge for any legal service as part of
tuition fees or charge low-costs, as do trade unions under a
group-bargaining scheme.

Your plan administrator is the person appointed by your sponsor to arrange
for the panel of lawyers from the contracted firm to provide services,
collects all the fees paid into a pre-paid plan, publicizes the plan and
handles enrolment and marketing. The administrator may be a an employee of
the sponsor, an insurance company or an outside firm.

Regulating Authority

Authorities that regulate pre-paid plans provide you with an outline of how
pre-paid legal services are managed and also an outlet in case there are
any complaints.
Individual pre-paid legal plans are generally regulated by your state
department of consumer affairs.
If you are an employee participating in a group plan funded by your
employer, then the legal services are covered and regulated under the
deferral Employee Retirement Income Security Act (ERISA).

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Many people believe they need the services of a lawyer, under a pre-paid
legal service scheme, to solve a legal problem or resolve an intricate
situation. Often, your lawyers most valuable help could be before you
get involved in legal trouble.

When you sign up for a pre-paid legal plan, you have the right to unlimited
toll-free telephone access to your attorney. The sound advice and
consultation given to you by your lawyer will help you take the necessary
steps to detect and resolve any potential legal problems before they take
more dangerous proportions. This is called in legal jargon therapeutic
jurisprudence or preventive law. Just as preventive medicine helps
prevent disease by detecting their symptoms, preventive law helps prevent
serious legal consequences by detecting early problems. In an increasingly
litigious society, there is real concern that assets you have worked long
and hard to accumulate may be attacked by creditors and litigants, through
no fault of your own. By the time a potential claim or liability is
identified, it is too late to act.
A competent attorneys advice is your best option to minimize your exposure
to potential risks and protect yourself from legal problems getting out of
hand.

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Pre-paid legal plans come in a variety of types depending on the scope of
legal coverage they provide.

The most basic pre-paid plan is designed to make the simple legal services
readily available to the general public at low cost. These plans typically
cost between $10 and $30 per month, billed in advance.
You get unrestricted toll-free number telephone access to a lawyer for
legal advice and consultation. You can also make brief office consultations
to talk to your lawyer about any legal problems you may be encountering.
Your lawyer can also write to letters or make phone calls on your behalf.
This can help resolve many problems before they escalate further.
Other services provided are not overly time-consuming: the drafting of your
will to distribute your property after your death, review of your trust and
any other simple legal document.

If you require any other service beyond the scope of a basic plan, then you
can either pay discounts on regular lawyer fees or pay a premium to upgrade
to a more comprehensive plan.

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Many people believe they need the services of a lawyer, under a pre-paid
legal service scheme, to solve a legal problem or resolve an intricate
situation. Often, your lawyers most valuable help could be before you
get involved in legal trouble.

When you sign up for a pre-paid legal plan, you have the right to unlimited
toll-free telephone access to your attorney. The sound advice and
consultation given to you by your lawyer will help you take the necessary
steps to detect and resolve any potential legal problems before they take
more dangerous proportions. This is called in legal jargon therapeutic
jurisprudence or preventive law. Just as preventive medicine helps
prevent disease by detecting their symptoms, preventive law helps prevent
serious legal consequences by detecting early problems. In an increasingly
litigious society, there is real concern that assets you have worked long
and hard to accumulate may be attacked by creditors and litigants, through
no fault of your own. By the time a potential claim or liability is
identified, it is too late to act.
A competent attorneys advice is your best option to minimize your exposure
to potential risks and protect yourself from legal problems getting out of
hand.

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If you are operating your own business, you cannot afford to go it alone
when it comes to legal matters. The ever increasing complexities of law,
spiralling costs of lawsuits and the proliferation of government red tape
can land you in a lot of trouble.

The flip of the coin is hardly attractive either! Hiring a lawyer can
constitute a substantial financial investment many cash-strapped small
businesses and entrepreneurs cannot sustain. Lawyers charge a minimum of
$200 per hour when it comes to business law and it can get very
costly if you are involved in lengthy legal procedures, complicated
contracts or business transactions.

There may just be a glitter of hope in pre-paid legal plans. For a set
monthly price, some legal providers are now bundling a whole suite of
legal services especially tailored to the needs of small-businesses.
Whether you need phone consultation on the legal complexities of a lease
contract, or require legal representation during tax audits, a pre-paid
plan can help you manage legal costs. An array of services is included as
standard coverage at no cost to you in the plan, and any legal matters
not covered can be provided with a discount on fees.

Before you take the leap, you need to keep some caveats in mind.

You need to know more about the quality of service you are likely to get.
While lower fees do not necessarily infer lower quality of work, it is
always necessary to bear in mind that legal specialization plays a crucial
part and lawyers are not interchangeable. Ask for references from previous
clients or ask entrepreneurs whove used the services of the provider about
the quality of work they have received from them. Use your state bar
association, service organizations in your locale and your local Better
Business Bureau to research law firms and the background of the attorneys
in the network before selecting them. Things to look for are the number of
years they have been operating, complaints from previous customers, the
education background of attorneys, professional track record and so forth.
With the increasing amount of small businesses involved in litigation and
fee disputes with their legal providers, I iss important to give some
thought to alternative courses of actions when dealing with disputes. Ask
your prospective provider about the way in which they settle disputes or
complaints. Do they have an in-house procedure to deal with complaints,
appoint a senior attorney to deal with such things or do you simply have to

settle out of court?

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