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New York Business Law Questions & Answers

1 Answer | Asked in Business Law for New York on

Q: Regarding Retainage on a contract in NYC: We are a subcontractor to a general contractor

In the Service Contract that we signed, payment of the retainage is specified as being no more than 30 days after the GC is paid by the Owner. I'm wondering if the actual due date for payment is 30 days after we complete work ... not based on whether the GC is paid or not. I believe that the... Read more »

Michael David Siegel answered on Jun 12, 2019

The retainage should be paid when the GC is paid, as this payment is for past work. You should also have a completion payment. It is possible there is an overlap between the two.

2 Answers | Asked in Employment Law and Business Law for New York on

Q: Can a business withold an employee's earnings?

Accounting said they paid double overtime by accident and that they need retribution. They are withholding my paycheck until i sign a form and say they can take it out of future paychecks.

V. Jonas Urba answered on Jun 7, 2019

I think you meant to write "restitution." If you pay anyone more than they are entitled to they will need to pay you back. You accidentally hand the McDonalds clerk a 50 instead of a 20 but only get change for a 20 they do not get to keep the excess unless they honestly did not see that you handed... Read more »

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1 Answer | Asked in Business Law, Civil Litigation, Contracts and Gov & Administrative Law for New York on

Q: Help filing suit for breech of contract.

I pawned my stereo for $125 with the understanding that I would be back to pick it up within 7 days. I called on the 4 day and was told it got sold a few days prior. He not only broke out deal, but he broke state law by selling the item before the 5 day minimum wait time. I have a witness to the... Read more »

Bruce Alexander Minnick answered on Jun 7, 2019

The amount of money involved is way too small to be of interest to most lawyers. FYI, the law is not designed to solve every little problem that comes your way during this lifetime; the Latin phrase for this rule is "De minimus non curat lex."

1 Answer | Asked in Business Law and Civil Litigation for New York on

Q: I need to depose witness that lives out of state. I want the depo governed by NY CPLR rules. any caselaw on this?

Michael David Siegel answered on Jun 6, 2019

Even better, there is a statute. You need to get something called a commission, which is a special proceeding in the state where the witness lives, based on an order from the NY court.

1 Answer | Asked in Business Formation and Business Law for New York on

Q: Starting a sole proprietor pet sitting business. Do I need a DBA and/or EIN?

I will be operating under a different name than my legal name and will be hiring independent contractors.

Michael David Siegel answered on May 28, 2019

If you are using a name instead of your own, you definitely should have it registered as a DBA. While you do not have to incorporate, if you are hiring people, you should. One is not necessarily an independent contractor just because you say so.

2 Answers | Asked in Business Law and Tax Law for New York on

Q: What is the difference between LLC structured as a S Corp and a Corporation elect to be a S Corp?

What are pros and cons for each type?

Michael David Siegel answered on Apr 5, 2019

LLCs are not S-corps, but the tax issues are the same. There is little difference. These are tax driven questions which are determined by your personal tax situation.

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1 Answer | Asked in Business Law for New York on

Q: Is a co-op board legally required to let shareholders know what lawsuits are pending against the building?

I think one of the tenants (shareholders) in my building may have filed a lawsuit against the building for a "slip and fall". I would like to know if this could create significant risk to the building.

Michael David Siegel answered on Mar 25, 2019

The easiest way to find out is just to look it up on the court docket. A board does not have to discuss litigation with shareholders. There is no risk, as insurance covers this claim.

1 Answer | Asked in Contracts and Business Law for New York on

Q: I filed a mechanics lien in ny state. The recipient refuses to sign for it. Is it still considered valid?

Michael David Siegel answered on Mar 13, 2019

It must be served. I am not sure what "signed for it" means.

1 Answer | Asked in Business Law and Contracts for New York on

Q: A client signed my contract, gave me a check that bounced and I did some of the work, what are my rights?

This was a B2B relationship. The client signed my contract, then they gave me a check and it bounced...it never cleared. I did some marketing work for the client and now the client is ignoring me and refuses to pay me what we agreed upon. What are my rights?

Michael David Siegel answered on Mar 12, 2019

Under the terms of the contract, assuming you have a right to payment, you can sue.

1 Answer | Asked in Criminal Law, Employment Law, Products Liability and Business Law for New York on

Q: Destruction of Property- subcontractors

I hired a subcontractor to do work for me in NY state. He hired an uninsured, unlicensed guy to do the actual work. This person he hired went outside the scope of instructed work and started pulling wires, cutting wires, and shutting off breakers in my clients facility. Once this was discovered, he... Read more »

V. Jonas Urba answered on Mar 8, 2019

How do you know the sub was a non-employee. You can always contact the Department of Labor. That may not help you much but only the DOL can decide who is or who is not an employee. Even if everyone wanted to agree, in writing, that the unlicensed was independent. What both parties think is beside... Read more »

1 Answer | Asked in Contracts, Business Law and Civil Litigation for New York on

Q: Piercing the Corporate Veil. Once the limited liability is lost in one instance, is it lost forever?

Will subsequent actions seeking to collect judgements against the debtor automatically assume the liability rests with the shareholder and not the alter ego? Or will plaintiffs have to make motions again, but use previous judgements as precedent?

Michael David Siegel answered on Mar 7, 2019

The latter. New motions by each plaintiff.

1 Answer | Asked in Tax Law and Business Law for New York on

Q: if i was paid a 1099 from my s corp, do i put that on line 7 (compensation of officers) on 1120s?

If not where would it go?

D. Mathew Blackburn answered on Mar 4, 2019

No.

Goes in gross receipts.

1 Answer | Asked in Tax Law and Business Law for New York on

Q: Help with the calculation

i made 30k through out the year, why is it when i put the full 30k on my schedule c i get a refund, and when i put 25k on schedule c and 5k as a distribution from my s corp i owe money?

D. Mathew Blackburn answered on Feb 28, 2019

Distributions from S-corps don't go on the 1040, just the net income.

Also, S-corp income goes on the Sch E not the Sch C.

Distributions go on the K-1 and adjusts your basis. They don't affect income except for very limited circumstances.

I'd suggest you find a...
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1 Answer | Asked in Tax Law and Business Law for New York on

Q: i made 8k on my s-corp and i took that money out and put it into my disregarded llc how would i have to report it

and pay the least or no taxes?

D. Mathew Blackburn answered on Feb 25, 2019

You would file an 1120S for the S-corp income of $8k, issue a k-1 to yourself showing box 1: $8,000; Box 17: D $8,000 for the distribution to yourself.

Then record an $8,000 capital contribution to your LLC.

1 Answer | Asked in Tax Law, Business Formation and Business Law for New York on

Q: i have an s corp and i didnt pay myself a w2 in 2018? what do i do acn i pay myself a 1099?

if not how do i withhold all my taxes? and issue a w2?

D. Mathew Blackburn answered on Feb 22, 2019

If you didn't pay wages you can't issue a W-2.

A 1099 does not solve the problem and creates self-employment tax.

Make an estimated tax payment on IRS.gov or EFTPS.gov.

1 Answer | Asked in Business Formation, Business Law and Tax Law for New York on

Q: i am a real estate agent and i have an s corp can i pay myself a 1099 or do i have to pay myself a w2?

Michael David Siegel answered on Feb 21, 2019

As the year is over, it is too late for a wage payment as you did not withhold taxes. Therefore, issue a 1099. The tax issue is the same, as you will pay self employment tax on the 1099 income.

1 Answer | Asked in Business Law and Tax Law for New York on

Q: doing my taxes now i dont remember when i opened my corp

is there anyway to find out online, can i put an approx date

Michael David Siegel answered on Feb 21, 2019

If it is a New York corporation, you can do a business name search at the website of the Secretary of State of New York State.

1 Answer | Asked in Business Law, Consumer Law and Contracts for New York on

Q: My company only sells used computers, can I advertise an apple logo on the website under a"Used brands we sell" tab?

Jonathan David Warner answered on Feb 12, 2019

If you don't mind the potential of being sued by Apple, go ahead. Otherwise, you might be better off not taking the risk.

Good luck.

3 Answers | Asked in Contracts and Business Law for New York on

Q: I'm looking for a business law lawyer who understands US & China law.

I'm looking for lawyer who understands the international law between USA and China. I have friend who run manufactory in China and I helped him getting vendor in USA one of large supper market, they have been working with supper market for few years now, I have helped them oncommunication in... Read more »

Ali Shahrestani, Esq. answered on Feb 4, 2019

You'll need a lawyer who is licensed in both jurisdictions (rare), or two lawyers. More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney such as myself. You can read more about me, my credentials, awards, honors,... Read more »

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1 Answer | Asked in Business Law, Real Estate Law and Tax Law for New York on

Q: is there any way to deduct the full closing costs on a rental property instead of adding it to the basis?

Jonathan David Warner answered on Feb 1, 2019

Why not deduct them as legal services?

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