Tip of the Month
Know Who You Are Dealing With
One of the most common contract details that are
often overlooked is "the legal entity". For example,
is the person you are contracting with a sole
proprietor or part of a partnership? Is the company a
DBA ("Doing Business As"), an LLC (Limited Liability
Company), or a Corporation?
The legal entity should always be clearly identified in
your contract. This information helps determine the
various options you have available during the debt
collection process. The course of action you take
against an individual is very different than the
proceedings against a corporation.
Another area to pay close attention to is the state
license. Does the person you are contracting with
have the appropriate business license? Is the license
valid in the state you are working in? For example, if
the subcontractor has a license in Connecticut and
your project is in Westchester, this minor issue will
cause you major headaches when trying to obtain a
court judgment.
As you begin to prepare for 2006, remember that
paying close attention to the small details can help
save you time and expense down the road.
