Legally Legit® Podcast

Attention, Photographers, Planners, Videographers, DJs, Florists, and all service providers collaborating with couples and their families for weddings and events… This episode of The Legal Paige Podcast is tailor-made for you.

Recently, within The Legal Paige Facebook Community, a member encountered a rather tricky scenario. Parents of the couple opted to cover the costs for the services provided. 

Our community member, keen on staying legally sound, went the extra mile by furnishing the parents with a third-party payor addendum sourced from our shop.

But here's the twist—the parent in question wasn't too thrilled, said some unkind words, and declined to put pen to paper. Now, legally speaking, this raises a major red flag.

Now, what's the best course of action for this service provider? Is it a matter of discontinuing their relationship with the clients? Should they proceed with the third-party payment sans the signed agreement?

In Episode 161 of The Legal Paige Podcast, we delve into this complex scenario, exploring how to navigate these challenging waters. And fear not, because I'll be offering my expert guidance as your friendly online attorney! 

MORE FROM THIS EPISODE: 

Tune into Episode 161 for a service-provider horror story that proves just how important it is to have a third party payor addendum, and how to navigate a sticky situation when the third party declined to put pen to paper! If you want more helpful business advice as you’ll hear on the podcast, be sure to join The Legal Paige Facebook Community where thousands of entrepreneurs just like you are getting real-time answers about running a professionally and legally legit business.

Are you a thrifter or DIYer who uses online marketplaces to buy and sell items?

As your friendly online attorney, I want you to be legally savvy in all areas of your life (even outside of clients and contracts). So what do you need to know about buying and selling on online marketplaces? 

Well, the sticky situations are truly endless: 

What if you get a *like-new* air purifier from the neighbor down the street… only to find out it doesn't work when you get home?

Or what if you sold someone a used microwave and they messaged you after they picked it up saying the turntable doesn’t move correctly and now they want to bring it back for a refund?? 

In Episode 160 of The Legal Paige Podcast, I’m sharing my legal marketplace how-to’s, experiences, and the legal doctrine “Buyer Beware”! 

BUYER BEWARE 

I am sure you have heard of the phrase ‘Buyer Beware’ but may not know the legal implications or definition. ‘Buyer Beware’ is a legal concept that comes from the Latin phrase Caveat emptor, quia ignorare non-debuit quod jus alienum emit which translates to “Let a purchaser beware, for he ought not to be ignorant of the nature of the property which he is buying from another party.”

‘Buyer Beware’ in basic terms is the duty of a buyer to inspect, test, and agree to an item before buying it. More specifically if an item does not come brand new from a certified merchant a buyer understands and acknowledges that the item is sold as-is. 

As a buyer, make sure you fully inspect any item you buy and understand that once you put it in your car and drive away… that’s it and you own it no matter if it works for another year or not. Buyers should never put money down on the table before seeing and testing the item. This not only helps prevent you from receiving faulty items but also protects you from potential fraud. If you are a buyer purchasing used items you must know you are taking on a risk when you buy used items…so BEWARE of what you buy.

MORE FROM THIS EPISODE 

Tune into Episode 160 and learn more about how to navigate the world of Facebook marketplace from a legal perspective! If you want more helpful advice as you’ll hear on the podcast, be sure to join The Legal Paige Facebook Community where thousands of entrepreneurs just like you are getting real-time answers about running a professionally and legally legit business.

Entrepreneurship isn’t all about the money–but it sure is a good feeling to see that paycheck come in. So how do you make sure that 1. You actually get paid and 2. You pay yourself, legally? 

Part of the reason why you start a business is to make money for yourself and to do that you have to know how to pay yourself. In Episode 159 of The Legal Paige Podcast we are going to take you back to the basics and talk about how to pay yourself legally to keep your business structure (and the advantages it provides) in tact, how to legally accept payments from clients, and what to do when clients want to send a payment to you personally versus your business. There are real sticky situations that you are going to experience at some point. And having the knowledge to handle these situations and the protection in place is only going to help you and your business. 

Step One: Have A Business Bank Account 

The first step to legally paying yourself as a business owner is to keep all of your business money in a Business Account. Even though certain business organizations do not require you to keep your business profits separate from your personal finances, you should still keep business profits and expenses separate! Keeping your business finances apart from your personal account will make it easier to do the accounting work for your business and file taxes at the end of the year. Additionally, it will be easier for you to pay yourself a consistent salary if your accounts are separate. 

More From This Episode:

Press play on Episode 159 and learn more about transferring money, the differences in how you should pay yourself based on your business structure, how clients should pay you, and more! If you want more helpful business advice as you’ll hear on the podcast, be sure to join The Legal Paige Facebook Community where thousands of entrepreneurs just like you are getting real-time answers about running a professionally and legally legit business.

Cancellations with clients can feel like the worst thing in the world, it’s something that can keep business owners up at night running through all the what-if scenarios… 

Especially, if it’s you canceling the contract with them. And that could be for a number of reasons; like a family emergency, or the client has been a nightmare to work with and you are ready to set boundaries, or they have deliberately breached your contract. Obviously this issue is a touchy subject because no one ever intends to enter into a contract to terminate it before all parties have completed their performance. Also, sometimes canceling can lead to bad tastes in clients' mouths, yucky feelings all around, and bad reviews (which is the worst case scenario).

So let’s look at how to cancel on your clients legally and make sure you are protected as the business owner at the end of the day. 

HOW TO APPROACH A CANCELLATION

Cancellations can be tricky and if you are the one who is canceling the contract, you will want to be delicate about it. My first piece of advice is to document that decision to cancel in a signed agreement and explain what is going to happen to any fees your clients have paid thus far.

A cancellation contract will be sent out to your clients as a stand-alone contract. A cancellation contract will terminate and supersede the previous service agreement and also any oral agreements you had with your clients (say through emailing back and forth or on a phone call with them).

WHAT IF THE CLIENT HAS BEEN A NIGHTMARE OR ISN’T RESPONDING? 

Before you cancel the contract try to reach out to your clients multiple times. Issue them warnings and explain that if you cancel the contract they will not receive their retainer back. 

You want to be professional in these situations while also being firm in your business policies! If you cancel due to lack of response from your client you are in the right to keep the retainer- in situations like this it might be best to cancel because your clients are preventing you from fulfilling your obligations under the contract. 

Keep in mind that if you decide to keep the retainer you may end up with chargeback scenarios or even threats of lawsuits. Although you are in your right to keep the retainer you may want to return it to avoid dispute in this case. Now I would ONLY return it if you have done little to no work with this client and it is early on in the process. Make sure you try to have them sign a cancellation agreement. They may not sign it and it's okay but they should be receiving an email from you requesting their signatures on the agreement and notifying them of the termination of the contract. 

MORE FROM THIS EPISODE:

Tune into Episode 158 and learn more about cancellations including how to cancel if you are experiencing extenuating circumstances or an emergency, the clauses I recommend you have in your cancellation contract, and more tips on how to handle cancellations with professionalism! 

If you want more helpful business advice as you’ll hear on the podcast, be sure to join The Legal Paige Facebook Community where thousands of entrepreneurs just like you are getting real-time answers about running a professionally and legally legit business.

Most small business owners I know are 1. Badass and 2. Constantly running between one project and another. There are always SO many things to be done and at times “small” tasks (like making sure contracts are properly sent and signed) can be tedious.

The catch? Sometimes the seemingly smallest tasks aren’t so small when they can have BIG legal consequences. If your business is a limited liability company (LLC) or has multiple owners, this podcast episode is for you.

A popular question in The Legal Paige Community is “Can one person sign on behalf of an LLC?” or “Do all owners need to sign every business contract?” In this podcast episode, I am answering these questions and giving you my legal take on how and who should be signing contracts on behalf of your business. 

YOUR BUSINESS FORMATION MATTERS

When you’re signing a contract,  your business’ formation matters. Unlike sole proprietors who are their business (and can sign as their business) an LLC is considered a separate legal entity from you as the owner.

That means owners will sign on behalf of the company. You don't need to sign a contract as “The Legal Paige, LLC'' for example, but rather you as the owner will sign YOUR legal name as an authorized representative of the company. 

So for example I would sign it as “Paige Griffith” with the title of your position below your signature, so again just as an example, for myself I would then add in the title, “Owner of The Legal Paige, LLC”. 

A good thing to note is this doesn’t mean you are personally responsible for debts or liabilities incurred under a contract. You are still afforded the protection of limited liability that an LLC offers when you are the owner signing your name on behalf of the business. And knowing how to properly sign your contract as an LLC is important for keeping that protection bubble of your LLC intact. 

MORE FROM THIS EPISODE 

Press play on Episode 157 and learn more about how to sign a contract if your business has multiple owners, what sole proprietors need to think about when it comes to signing contracts, and my overarching legal take on the matter!  If you want more helpful business advice as you’ll hear on the podcast, be sure to join The Legal Paige Facebook Community where thousands of entrepreneurs just like you are getting real-time answers about running a professionally and legally legit business.

When it comes to running a successful business, it can feel like there are A LOT of legal aspects to consider (and many entrepreneurs become overwhelmed trying to stay on top of it all). Protecting your business is important and there are several ways to do it…but at The Legal Paige we like to tell business owners that what you really need is the business triangle: Insurance, Contracts and the right Business Structure. 

While you can't prevent legal issues from arising, having these three main lines of protections with your business will protect your assets and your business if the worst does happen!

In Episode 156, we'll dive into the importance of insurance and how it can protect your business in the event of unforeseen circumstances, your business’s contracts and how they can help define the terms and conditions of your business relationships, and the crucial role that business structure plays in limiting liability and protecting your personal assets. 

You’ll walk away with a clear understanding of  how all three of these things work together when a legal issue pops up (and the various lines of defense these create to protect you)

MORE FROM THIS EPISODE:

Tune into Episode 156 for more information on the “business triangle” and WHY it’s so important for protecting your business! If you want more helpful business advice as you’ll hear on the podcast, be sure to join The Legal Paige Facebook Community where thousands of entrepreneurs just like you are getting real-time answers about running a professionally and legally legit business.

Let’s say you came up with an AMAZING business name, it’s an extension of your legal name, but it is so unique. You know it exists no where else, and you are literally giddy thinking about what the future holds. 

While you are marketing, and doing business under this name, I want to share with you why you should file a DBA application and what it can do for your business.. 

Whether you are a sole proprietor doing business under a different name then your legally given name. Or you are a seasoned business owner, thinking of operating an extension under your LLC using a different name… this episode is for you.

WHAT IS A DBA? 

“Doing Business As” aka “DBA” means that you are running your business under a different name than the name of your business. Sometimes when you start your business your bills and paperwork are under one name but the name that you advertise under is another name. For instance, if you are a sole proprietor that is using a name that is different from your own legal name you would have a DBA (i.e. my personal name is Paige Griffith and my DBA would be “The Legal Paige”). Additionally, if you are an LLC, and you are operating an extension of your business under a name that is different than the legally registered LLC name you would be using a DBA name (i.e. your biz is called Christa's Corner, LLC but you sell things online as “Christa’s Beautiful Belonging”). 

WHO SHOULD FILE A DBA?

People often wonder why the heck a DBA is even necessary. Operating under a DBA is a great way to separate your business name from your legal name if you are operating as a sole proprietorship. Additionally, having a DBA will ultimately help you grow, expand, and be an official biz in the eyes of your customers and other businesses in your area because you are operating under a more official name. 

Before you start operating under a DBA you need to register it with the state. I cannot tell you how many small businesses operate as a sole proprietorship but have not filed ANYTHING with their state. Here is the main thing you need to know as a sole proprietor: If you are operating your business with a name other than your legal given name you MUST file your DBA in your state and/or county. 

It is also often required to have a DBA if you want to set up a business bank account. Although some banks do not require it and you may use your social security number, I STILL recommend getting a DBA to be official with your state. 

MORE FROM THIS EPISODE:

Tune into Episode 156 for more information on DBA’s including HOW to actually file a DBA and why this is so important for your business! If you want more helpful business advice as you’ll hear on the podcast, be sure to join The Legal Paige Facebook Community where thousands of entrepreneurs just like you are getting real-time answers about running a professionally and legally legit business.

As an entrepreneur,  you're always on the lookout for ways to stay ahead of the curve and grow your business. With the rise of Artificial Intelligence, it's becoming more and more tempting to use online tools and programs to generate content for your brand. But, before you jump on the AI bandwagon, let's talk about the legal implications.

How can you use AI content legally? Do you need a licensing agreement? Can you copyright AI-generated text and pictures? These are the burning questions we'll be tackling in Episode 154 of The Legal Paige Podcast. 

What IS AI-Generated Content?

AI-generated content is content that is created using machine learning algorithms, without any direct human input. AI can generate text, images, videos, and even entire websites. For small business owners, AI-generated content can be a game-changer because it can save time and resources. Instead of spending hours creating social media posts, blog content, or product descriptions, business owners can use AI tools and programs to generate content quickly and efficiently. 

Can My Business Own AI-Generated Content? Is It Copyrightable?

The answer to this question depends on the specific circumstances of your business and the content that has been generated. In general, businesses can own AI-generated content if they have a license agreement in place with the AI technology provider that grants ownership rights. However, it's important to note that the copyrightability of AI-generated content is a gray area in the legal landscape. In the United States, the Copyright Office has stated that it will only register works created by a human author, which could exclude AI-generated content from copyright protection. However, there is ongoing debate about this issue, and some legal experts believe that AI-generated content should be eligible for copyright protection. All in all, right now as I record this episode in March 2023, it is possible for businesses to own AI-generated content, and it may be eligible for copyright protection. However, it's important to note that the level of involvement of AI in creating the content must be carefully considered. To be eligible for copyright protection, the majority of the work must be created by a human author, with AI only playing a supportive or supplemental role. 

What Do I Absolutely Need To Know Regarding The Legalities of Using AI?

Simply put: DISCLOSE WHEN YOU ARE USING AI. When you use AI toward any commercial endeavor, you absolutely should let consumers and the public know AI contributed! Otherwise, you can be at risk of a software company claiming copyright infringement or consumers claiming misrepresentation. 

TLP’s suggestion is to do two key things:

1. Put a disclaimer within your Website Terms & Conditions if you are utilizing AI to create any type of content you are posting on your website. That means if you use AI to write the copy on your website, write blog posts, create stock images, etc. you absolutely should be disclosing that to users. 
2. Put a clause in your client contract if you are utilizing AI in any way for the services you are providing. This is also the most ethical way to approach the use of AI right now because of consumer unawareness until it becomes more mainstream in society. 

MORE FROM THIS EPISODE

Press play on Episode 154 and learn more about Artificial Intelligence (AI), how to legally use AI as a small business owner and so much more.

If you want more helpful business advice as you’ll hear on the podcast, be sure to join The Legal Paige Facebook Community where thousands of entrepreneurs just like you are getting real-time answers about running a professionally and legally legit business.

Here's the situation: You had a client inquire about your services (yay!). They seemed excited and the conversation led you to send over a contract. You wait and wait for a response only to hear crickets…so you end up signing on another client for the date in question. You can’t wait around forever, right? 

But then the original client comes back and says they are ready to sign. Your stomach drops because you gave away the spot and now you have an angry ex-potential client on your hands demanding that they have that date despite their own lack of communication. 

What do you do? Do you give in and cancel the other contract? What if they leave a terrible review about you? In Episode 153 of The Legal Paige Podcast, I dig into this sticky situation and let you in on how I would handle it (and how you can avoid it in the first place).

HOW TO RESPOND IN THIS (STICKY) SITUATION 

The most important thing you can do to address this situation is to respond back with the facts! Tell the person that you communicated with them in X way X amount of times. Explain that you book your services on a first come first serve basis and that you waited a certain amount of time (say two weeks) with an open contract and didn’t hear from them. Reiterate that you moved onto a new client, apologize, but be firm in your stance that your services are highly sought after and it’s not your fault that they had such a delay. 

TIPS FOR AVOIDING PROBLEMS LIKE THIS IN THE FUTURE

1. Always set a deadline for when your contracts need to be signed, clearly communicate to your clients that if they don't sign by that date you will open the date back up to other inquiries. Especially important here with sought-after dates.
2. Follow up 24 hours prior to the contract deadline. Alert the potential client that their deadline is approaching and a signature is necessary to make things official - documentation and proof are your friends here!
3. Tie up loose ends. After the contract deadline has passed, follow up with the client and say that the contract signing period has lapsed. Therefore, you will open their date back up. Remind them that if they would like to book services or they choose another date, they will have to sign a contract at that time and your pricing is subject to change.

MORE FROM THIS EPISODE:

Tune into Episode 153 of The Legal Paige Podcast for more details about how to handle this sticky situation and avoid it in the future. You don’t want to miss my BEST tip for motivating potential clients to sign ASAP toward the end of the episode.

If you want more helpful business advice as you’ll hear on the podcast, be sure to join The Legal Paige Facebook Community where thousands of entrepreneurs just like you are getting real-time answers about running a professionally and legally legit business.

After experiencing bank fraud pretty significantly at the end of January, I recorded this podcast episode to open up about my experience. One day I woke up, checked my bank account, and noticed a HUGE, and I mean HUGE fraudulent transaction from my bank account. Once I thought I had gotten it all figured out with my bank, we had more fraud hit another business bank account. 

 
After having a bit of time to process and time pass, I am now ready to impart some of these lessons to you, and shed some light on how you can legally protect yourself, separate your bank accounts accordingly, keep your assets separate, and ultimately, why I HIGHLY suggest having an LLC or C corp.

WHAT IS FRAUD? 

According to dictionary.com, fraud is deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage.

Wire fraud is the use of electronic communication with the intent to commit financial fraud. A scammer poses as a trusted source, usually a vendor, company, or family member, and requests an immediate wire transfer of funds. The fraudster will usually play up the urgent need for the funds, often claiming an emergency, as a way to emotionally manipulate the victims.

Now why does this sticky situation matter to you as a business owner?  Because it can literally happen to ANYONE, including your friendly online attorney who’s generally got her shiz together.

HOW CAN YOU LEGALLY PROTECT YOURSELF?

1. Generally speaking, try to use a card to pay for services. A credit card is honestly best because it's not tied to your bank account, but a debit card is fine as a second best option because you can hot card it and cancel it immediately and just get a new one. However, of course, the reality is that if you’re an online business owner like me, you probably have 9823 million online platforms tied to your card for it to auto pay monthly. BUT, my big big big suggestion for you here is to stop paying by check for things and also try your hardest to avoid paying using your bank account number.
   *If you are using the same bank for personal and business purposes, get two different logins for your accounts!
   
   
2. Stop storing your passwords on Google chrome or any other type of auto password generator. This is one of the easiest ways for a hacker to get access to your online accounts.
   
   
3. Check your bank accounts daily, if not every other day (that’s what the bank suggested to me).
   
   
4. If you save passwords anywhere, save them in a highly encrypted, two-factor authentication password security program. We actually moved from Lastpass to Keeper because of this issue. And, I’m not going to lie, I’ve been talking with some cyber security gurus about what happened with me and they even said keeping a Rolodex or little notepad of your passwords is oftentimes LESS of a security risk than keeping them in an online platform. Hackers are getting more and more sophisticated and it's really something we all need to be better about. It's not IF it will happen to you, it's when.

MORE FROM THIS EPISODE

Tune into Episode 152 and learn more about my experience with bank fraud including tips for protecting yourself, why you should separate your LLC accordingly, and more. Also, be sure to join The Legal Paige Facebook Community where thousands of entrepreneurs just like you are getting real-time answers about running a professionally and legally legit business.