Hotels, Agreements, and Contracts

Consult with your attorney before signing a contractAngel asks:

I’m in the process of confirming a deal with a local hotel in providing baskets for their VIP guests.

Do you advise a contract because the number of baskets may change from time to time?

I would like to consider them my corporate client. Please share your suggestions and comments. Thank you very much.

It’s critical that all agreements, specifically for multiple baskets or components, are sealed with a contract whether your order is with a hotel, retail store, or private firm.

Because you’re working with a hotel, this status automatically puts them into the corporate client category.

I once worked with a woman who was in charge of the entire head start program in my city. The quantity of her orders, all made for friends and family members, also placed her into corporate status because of volume and not because of her profession.

Another designer asked about contracts. You’ll find my response here.

It’s wise to consult an attorney to make sure your contract favors you in all conditions. You’ll also find contract samples in books and online, but investing in an attorney’s counsel will let you sleep at night.

Which Business Structure for Your Gift Basket Business?

Learn about business structures before choosing one for your gift basket business
Flora asks:

“Is it necessary to hire a lawyer with help setting up an LLC? I’ve heard that you can save money by setting it up yourself.”

An expert (I don’t remember the person’s expertise) who recently responded to a newspaper Q&A discouraged against incorporating a business without legal assistance.

I can understand that, but in my opinion, registering a company as an LLC (limited liability company) is not as complicated, so depending on your ability and willingness to review documents with meticulous care, I believe it’s possible to set up an LLC without legal assistance.

I do, however, suggest that you review the pros and cons of sole proprietorship, LLC, and incorporation to make sure you’ll be satisfied with your business structure choice. You’ll find a handy chart comparing each structure on the Nolo.com site.

Some states may not recognize LLC formation, and other states may make the process so complicated that hiring a lawyer to complete the job is preferred.

For example, New Jersey once did not recognize LLCs, but now they do. I was able to apply for and complete the paperwork online and pay a nominal, one-time fee, all without legal assistance.

California, as another example, provides business structure information on this page, making it easy for business owners to determine each step.

The book, How to Start a Home-Based Gift Basket Business, also introduces you to business structure options. Even if it’s not as detailed as updated state and country sites, it still provides a blueprint for one to consider before registration.

After you review the LLC formation details, you’ll know if it’s right to proceed without a lawyer or if one’s help is mandatory.

Are Gift Baskets a Business Tax Deduction?

Work with a certified public accountant to understand what is tax deductible and what is notDiane asks:

“I am trying to capture our local Real Estate market for closing baskets and would like to know if the Real Estate Agent can write the basket expense off on her income tax as a business deduction? I think that would be a good tool to use to try and snag the account.”

I’m aware of how some of my clients deduct the gift basket orders I fulfill for them; however, the question you ask is best answered by your accountant.

Business laws aren’t always the same in every city, county, state, and country. I’m not an accountant, and I’d be irresponsible to advise you on this matter. That’s true for anyone who’s not a CPA (certified public accountant).

I agree with you that knowing and sharing this information is a good tool during a presentation. If you’re not yet working with a CPA, small business owners with whom you network may be able to recommend one to you (that’s how I found my accountant).

A 30-minute or one-hour meeting with a CPA is worth the investment, as you can ask many questions during that time frame.

Once you learn the right answer from this knowledgeable source, you’ll move forward confidently with your real estate market presentations.

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