Judgment Business Names And Entities

I am not a lawyer, I am a judgment referral expert (Judgment Broker). This article is my opinion, based on my experience in California, and laws vary in each state. Nothing in any of my articles should ever be considered legal advice. If you ever need legal advice or a strategy to use, you should contact a lawyer.

When you start a judgment business, or any business, you will be choosing and verifying a good business name. If your name is (e.g.) Frank Smith, you could register a franksmith domain, and do business under your own name. You could then skip getting a fictitious business name (doing business as) registration. However, most people form a business under another name, such as JudmgentsRus, and file a fictitious business name application.

Unless you are an attorney, you cannot represent anyone else. If you are a sole proprietor using a DBA, when in court, or when signing court documents for judgments you own, you must sign them with your real name. A DBA is not a separate entity from you.

The only advantage to signing court documents with your name and also your DBA business name, is if you have a catchy DBA name and you think someone might notice it. This happens less often than one might think. So signing court documents just with your name, saves you time and hassle.

Note that in most states (South Carolina being one exception) LLCs and corporations cannot represent themselves in court. For most judgment recovery businesses, it is usually best not to form a corporate entity.

If you are going to hire a lawyer to represent you or your company in all court matters, or you are part of a collection agency, forming or using a corporate entity might make a lot of sense.

Forming a corporate entity can be expensive. In California, you must pay the state $800 per year (even if you lose money), and hire an accountant to file your corporate taxes, etc. It is best to check your local state and county laws, and talk with both an accountant and a lawyer, before planning or forming a corporate entity to recover judgments or debts.

What business name should you use? If you are mailing letters to judgment debtors after you own judgments, you cannot put anything related to debts or judgment collection on the envelope. I run a judgment-related company, however I do not put my business name on envelopes.

Some data service do not like to see the word judgment in business names. Collection is a better name to them. Also, there are still some directories that do not have judgment enforcement as a category, however collections almost always has a category.

The average person starting a judgment recovery business without having a name yet, you should consider picking a business name and domain name that hints of solutions or problem solving, instead of recovery or collections. Frank Smith could name his company “FS Services”. Some people would rather do business with a company, even a DBA sole proprietor, than just a name doing business as a sole proprietor.

It is not your name, it is what you do with it. What counts is the work you put into marketing your name, and the quality work associated with it. Some smart people made a company called Google, and now when you think of the word “search”, you think of Google.

Most businesses take a lot longer to generate a consistent profit, than the person who started the business ever imagined. This is especially true in most judgment enforcement businesses. On the web, a domain name with words such as judgment or enforcement may be a good idea. Even if your domain name is JudmgentsrUs.com, you can still do business as FS Enterprises, a DBA of Frank Smith.

5 Strategies For a Prosperous Family Business

A proverb that aptly describes the early days of most small businesses is the African proverb, which says “If you want to go quickly, go alone. If you want to go far, go together.” Though new owners delight in rapid growth when they start their business, in order to sustain their business in the long run, they are aware they need to build on to their team. To begin with, the work load is easier to manage for a business owner, but as projects and tasks build up, extra help is needed and family members are usually the first to be recruited as employees.

Family-run businesses are popular in the United States (they make up for 60 percent of the gross domestic product). They keep capital safe in family structures and family members tend to be eager about working for their relatives. Say you have a family member who is knowledgeable about marketing strategies for small businesses; it would be smart to utilize their ideas to help your business grow.

There are some downsides to the structure of family businesses though. Family members may not be qualified to handle certain tasks, such as bookkeeping for small businesses. Bookkeeping requires one to be numbers-driven, exact, and perhaps even removed from emotions. If a family member handling this task is too driven by emotions (such as trying to make a family member proud), they may falter and mess some things up. It may be smart to consider bringing in outsourced accounting services to help with creating a uniform, impartial bookkeeping process.

Here are some more tips that can help your family business be successful:

1. Create job descriptions.

When hiring a new employee, a business usually has a clear set of responsibilities and tasks for them. Just as you would have a list of expectations for outsourced accounting services you are working with, you should make sure that there is a clear and concise job description for every role in your business. That way you don’t assign your family member to a bookkeeping job if they have no background in or don’t know what bookkeeping for small businesses involves. If every role in your business is explicitly explained, you are able to evaluate every one’s performance.

2. Set appropriate wages.

Don’t over or underpay family members solely on the basis that they are your family member. Instead, research how much workers are making at other firms and then apply that information to the wages you set. Reviewing pay levels is actually one of the most successful marketing strategies for small businesses.

3. Hold regular staff meetings.

It is important for the delegation of tasks, checking in on current projects, and overall communication within a business to hold staff meetings. Even if you see your family members that you work with every day, a brief daily or weekly staff meeting will keep everyone on task and the business staying on top of the work needed to be done.

4. Set a few ground rules.

Setting some ground rules for your business helps upkeep structure, informs everyone about company procedures, and helps people understand and resolve conflict.

5. The blurring of the line between personal and business realms in a family business.

This doesn’t have to be a negative point. Family goals at work can prove to be useful for when you need to increase energy and motivation among your employees.

Keeping the tips above in mind, don’t forget that you can turn to outside consultants, such as outsourced accounting services, which can provide unbiased business remarks and advice that may be difficult for family members to do.