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Best Open Source Business Tools?
An anonymous reader writes "My wife and I started an S Corp in 2009 mainly to provide small scale consulting services for friends with small businesses of their own (we build them websites and do odd technical jobs). Now that the year is closing I'm giving thought to our corporate tax filings which will be due March 15th. I've scoured the web for free/open source legal templates for hiring contractors, issuing W-2s, keeping shareholder minute meetings, etc, but haven't been able to find any decent sources. It seems like this should be a priority of the open source community since reducing the cost of entry into small business could drive open source development. What are the best sources of open source legal templates, tax filing software, corporate compliance templates, etc?" What experiences have others had with open sources businesses and the best way to consolidate the necessary corporate mojo into a workable model?
I'm not an expert in this field, but it would surprise me greatly if there were Free templates of the sort you seek. For starters, most business law is governed by state law rather than federal law, so the requirements will depend in large part on where you are incorporated.
Second, the sources for those templates would generally be the experts who derive their living from selling that sort of information (i.e. lawyers, accountants, tax firms, etc.) It is in their own financial best interests not to give away that which they need to make their own ends meet. Business law and tax law are very convoluted and generally require quite a bit of specialization.
I can see the possibility of Free tools for W2s and meeting minutes, but I'm skeptical as to the availability of legal and taxation materials. Also, even if they were available, I would go in with both eyes open because as a business owner, you're on the hook for making sure you're using correct and current information, and taxes in particular change with alarming regularity.
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Something cleverIn light of the topic, I am not giving anyone legal advice nor do my comments intend to replace, compliment, or supplement the enlightened advice of an attorney in your state. In fact, I might be completely wrong so do not rely on anything I say. These are merely my uneducated opinions on the topic at hand.
Interstingly, Legalzoom is a corporation and as such, is not legally allowed to provide legal advice. Many states, allow for Limited Liability Partnerships which as similar to corps. but do not entirely insulate an individual from a lawsuit. In an LLP, one partner is not liable for the malpractice of another partner, but each is liable for his/her own malpractice. Thus, LLPs do not provide absolute insulation from professional liability but the firm as a whole is insulated for another's liability.
Corporations have much broader insulation for shareholders to encourage investment. LLP's aren't allowed to have non-professional investors. Thus, if the LLP is a law firm then only lawyers may invest in the LLP. If the LLP is a medical practice, then only doctors. Basically, most states don't want to guarantee no liability for people in these fields but still want to encourage efficient partnerships. Thus, the LLP was formed.
The fact the Legalzoom exists as a corporation tends to promote the idea that these form providers are not handing out legal advice, at least not under the definition of the states where they provide there forms. Of course, they may be "risking" it and might be in violation of some state's law, but I didn't take the time to go check any individual state's law on the unauthorized practice of law with reference to "legal" forms. There is likely some case law out there with respect to tax forms and wills/trusts forms since people have been publishing self-help books with template forms in those areas for decades.