Category Archives: Business

Five Facts Every Business Owner Needs To Know About The Law

http://www.dreamstime.com/-image8912623

Welcome to Legal Month at the Fictorians!

Writers are business people. We own our enterprises and are responsible for them. While we often focus on the craft of writing on this site we felt a walk on the business side was necessary. We’re going to spend much of March looking at issues writers, and all business owners in fact, need to know about the law such as taxes, necessary record keeping, agents, contracts, indemnification and reversion clauses, copyright, creating your business, creating publishing company, and much more. An important note about this month: We’re not providing legal advice and if you have specific questions about the law and how it applies to your situation, please contact an attorney where you live.

Five facts about the law every business owner needs to know:

FACT 1 –  Anyone can sue you. 

Legal disputes are part of the cost of doing business. For the fiscal year ending September 20, 2012 (the most recent one I could find statistics on), the United States Federal Courts had 278,442 new civil law suits filed. http://www.uscourts.gov/Statistics/JudicialBusiness/2012.aspx  While this number represents a decrease in filings from the previous year it’s still a respectable number. Keep in mind too that this figure doesn’t take into account new cases filed  in a state court. While there are rules against frivolous or harassing law suits it is often difficult to show that any specific case was completely baseless and the other side should have known that their claim wasn’t legitimate when they filed.

Litigation is VERY expensive. A bit of prevention (and expense) can save you thousands on the back-end. A business lawyer’s job is to anticipate what could go wrong and try to give you the best possible protection in case the worst happens. Nothing is perfect though, and the more successful you become the bigger the target on your back.  Which brings me to my second point…

FACT 2 – Becoming a Corporation is Inexpensive and Provides You with a Level of Protection. 

You are almost always better off operating under a corporate umbrella rather than being a partnership or a sole proprietor.  Corporations are considered separate “people” from their owners under American law.  As a general rule a person suing a company can only collect their judgment  from the company’s asset, not the owners’.  Incorporating also allows you to keep profitable ventures separate from more experimental ones or ones losing money. It is fairly common practice for a real estate developer, as an example, to form a new company for every project that way if project X fails the business does not have to use its revenue from successful venture Y to pay off X’s debts. The owners merely pay off as much of X’s debts as they can with whatever assets X has left without jeopardizing their or that of their other ventures’ financial health.  Is it necessary for a writer to have a new company for every book? Not generally. Writing is not generally considered a high risk enterprise.

Another advantage to operating through a company is the ability to give yourself a salary and issue yourself a W-2. Being a W-2 employee has several tax advantages. It also means you qualify as an employee and not self-employed when the time comes for you to get a loan, whether business or personal.

FACT 3 – You Are Responsible For The People You Hire. 

Employees are a mixed blessing. They are fabulous because they let you do the things you love doing about your business – like writing – and delegate the things you like least or take too much time away from your main focus  – for example, maintaining a website or social media presence.  The also present their own special set of legal challenges.  But I’m to not going dwell too long on theses since that’s a several post long discussions. Let me point out two though.

Your employees are part of your public face. Their acting badly reflects on you. Choose your agents, publicists, editors, lawyers, accountants, and employees with care. In this highly visible world a stray (or not so stray) comment on a social media site can bring down an empire. After all, it only took the Doctor six words to bring down an administration.

Ensure you classify the people who work for or with you properly. While it might be tempting to classify your helpers as independent contractors spend time with a lawyer to make sure they qualify under the IRS guidelines. Understand that all exempt (from United States Federal Overtime requirements) employees are salaried, not all salaried employees are exempt. There are also state laws governing when an employee must be paid overtime. Again this is a classification issue and some up front time with a lawyer can save your business.

FACT 4 – You Will Be Deemed to Know the Law and What Your Contracts Say Even if You Don’t. 

Ignorance of the law is not a defense. Don’t sign any document you haven’t read. If litigation results a court will deem you to have known and understood a contract’s terms. Lots of nasty upsets can be avoided simply by reading a contract.  Know what you’ve agreed to. If you don’t understand, I mean really understand, what you are being asked to sign, DON”T SIGN IT and seek legal advice first. Renegotiate the unacceptable terms. Sometimes walking away from a bad deal is the best you can do.

FACT 5 – Words Matter.

This last one shouldn’t surprise you. After all, who knows that words matter than a writer? Fellow Superstar Attendee Mignon Fogerty aka Grammar Girl once asked me if it was true that lawyers litigated over the placement of a comma. The answer is “sometimes” as comma placement can change a sentence’s meaning. I’ve litigated the meaning of “unique”, and “exclusive” and, yes, exactly what a clause modified (i.e. did the comma mean anything?).

Do not accept a word you do not understand.  Contracts, especially older ones, use the word “witnesseth.” When I’ve struck the word and asked the other attorney what the term meant…well, let’s just say I manage to get it struck most of the time. Why? Because it’s unnecessary. “Witnesseth” means “to take notice of” rather than to “witness” a document. Since the word comes before the signature lines it’s a bit obvious that the person signing has “noticed” the document. We’re going to have posts focusing on specific words in indemnification and reversion clauses so I won’t belabor the issue about the meaning of words  here.

Keeping these principles in mind won’t guarantee that you’ll never have a legal dispute. But they just might let you know when to seek professional help from lawyers or tax professionals.

I hope you enjoy the upcoming month, and come back for more great information.

Disclaimer:

 The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney
to obtain advice with respect to any particular issue or problem. No attorney-client relationship has been created.  Legal information is not the same as legal advice — the application of law to an individual’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation.

Book Launch: Veterans of the Future Wars

VFWCoversm All’s fair in love and war…and sometimes, the last thing you can do for your loved ones is to take up their cause as your own.

VFW: Veterans of the Future Wars is out now from Martinus Publishing. I’m honoured to be part of this military science fiction anthology assembled as as tribute to veterans. 10% of profits will be donated to Disabled American Veterans.

And so, my second post this month isn’t about love and murder. It’s about love and war. It’s about the love that soldiers have for the women and men in their units: their brothers and sisters in arms, the people they live with, work alongside, fight with…and all too often die with. And it’s about a young misfit who realizes, a little too late, that her comrades in arms are the family she’s never had.

What do you do when the only person to look out for you, the only person to really care about you, is taken away from you in a sudden, shocking act of war–before you’ve had a chance to appreciate what she’s done for you? For a young spacer named Jan, she finds herself honour-bound to become the soldier her unit commander always believed she could be. But her greatest enemy isn’t the Colonials who attacked her ship; it’s the devastating emotional aftermath of being a survivor, and that war may continue long after the Colonials lay down their arms.

Jan’s story, entitled “The Last and the Least,” is one of 16 short stories in VFW: Veterans of the Future Wars.  If you’d like to see an excerpt from the story and read a little more about the inspiration for this tale, you can check out my author interview at Three Cents Worth.

You can order your digital copy for Kindle of VFW: Veterans of the Future Wars from Amazon, or order a paper copy directly from the publisher.   Prepare to explore the Future Wars – and honour those who have fought before.

Book Launch: Fossil Lake

fossilDo you love the dark?

My latest short story release is in  Fossil Lake:  An Anthology of the Aberrant, out now from Daverana Press.  Mishipishu:  The Ghost Story of Penny Jaye Prufrock is set in a place modeled after somewhere I know and love:  a summer camp I went to many times during my childhood.  It’s one of 37 stories and poems  in this anthology of the aberrant.

Penny has spent most of her summers at Camp Zaagaigan, a place that offers her refuge from the rest of her life, which seems to fall apart more every year–but next year she’ll be thirteen, and too old to come back.  Fearful that growing up is going to cost her everything she loves, she escapes into imagination, and she’s even got an imaginary friend to share her journey:  a fossilized creature she dredged up from the sediment at the bottom of Lake Mishipishu.  Mythology, though, is a double edged sword, and Penny may not be prepared for the consequences  if she follows her new friend too far into the lake.

Setting a story in a real-world place was a pleasure and a challenge.  On one hand, I didn’t need to spend a lot of time worldbuilding the setting:  I simply dredged my memories and had a full map of the camp, a ready-made stage on which to enact my story.  It was also very easy to add a lot of sensory description, because my memories are still very vivid:  the feeling of the sand on the beach, the smell of the campfire, the sound of the waves slapping against the dock.  On the other hand, the major change requested by my editor was to cut out some of the unnecessary description that wasn’t critical to understand the story.  I probably could have gone on for twice as long if I’d wanted to describe every aspect of the camp that I’d enjoyed as a kid; but bogging the story down in irrelevant details wasn’t doing it any favours.  The final version of Mishipishu is leaner, meaner, and ready to sink its fangs into you.

If you’d like to meet the lake monster of Camp Zaagaigan, and the other horrors that can be found in Fossil Lake, you can order your own copy of the ebook right here for only $2.99.

I loved going to summer camp each year.  But sometimes, what you love can be the death of you.

 

Never Stop Learning

I don’t think I can count the number of times I’ve heard people say that some aspect of writing couldn’t be taught. My personal favorite is that you can learn all the technique you want, but you’re either born with the ability to tell a good story, or you’re not. That you can’t learn how to tell a good story.

I personally think that the people who espouse these ideas have either spent entirely too much time dealing with writers who aren’t willing to put the work in, or we’re all a little confused on what, if any, difference there is between technique and telling a good story.

Writing is a craft, after all, and no one’s born a master of any craft.

Of course, we will probably never be utterly fantastic at every aspect of the writing craft. Some have fantastic world-building but a slow plot. Others great characters but not enough setting. Stephanie Meyer, for instance, has long been derided on her writing style, and has even admitted herself that she’s not the best writer, but she’s does a hell of a job weaving emotion into every scene and tugging the heart strings of her readers—which is exactly what her readers want.

The point being, just because you’re not the greatest at something doesn’t mean you’re not a good enough writer to be published. At the same time, ignoring your weaknesses because “it can’t be taught” is a total cop-out, in my opinion.

Like most everyone here, I dream for that day when I’m going about my usual day, doing something boring and what-not, only to happen upon someone reading a book with my name on it. I feel the despair that I’m not quite there yet and hear the clock ticking away the time that means there’s one more day I haven’t achieved my dream. And yes, I’m a realist. I know a good portion of that is fear of putting my work out there, but I also know I’ve still got some serious weaknesses that I need to address.

When I was a teenager, I had a choir instructor who explained that he taught people who were tone-deaf how to sing. It’s in understanding the real root of the problem that allows something like that to happen. With the tone-deaf people, they had to learn how the notes related to each other to be able to figure out how to go from one correct note to another correct note without wandering off, so to speak.

With writing, I think, it’s much the same. If you understand what the real problem is, you can fix it. You just might have to look a bit harder and be a little more creative to get the results you’re looking for.

My personal demon at the moment is plot structure. Something’s always escaped me about how to put one event before another and have it work to engage the reader, move the story forward, and still service the characters.

As a discovery writer, I lean toward minimal effort spent on deep planning before writing. Unfortunately, I’ve been struggling with a few stories that I have come to realize really need to be plotted before I start writing in earnest. So, recently I decided to dedicate a good portion of this year in workshops and classes specifically geared toward pre-writing. Currently, I’m doing David Farland’s online prewriting class at mystorydoctor.com, and while it has done a fantastic job in helping me learn how to plan a novel before I write it, it incidentally  opened my eyes as why plot structure has always eluded me.

For me, there was one exercise in particular that helped me figure out what the real problem was. The idea was to establish circularity between characters in opposition to each other, by writing out how each character reacts to the actions of the other. This forced me to find the cause and effect of the conflict…and suddenly I know how my plot is supposed to work and how the sub-plots interact with it. Suddenly, I get it.

So, that’s my goal for this year, to focus on becoming a better writer by taking my weakness and working to learn how to get better at it.

I refuse to believe that there are things I can’t learn. The only thing I was born with was a love of stories. The writing portion is a work in progress.