More information on our firm, including how to schedule a free consultation and sign up for various events can be found on our homepage at http://pkhammarlegal.com/ 2012 Lunch N' Learn Schedule Friday, January 20: Wills, Powers of Attorney, and Advance Directives Friday, February 17:Understanding the Commercial Lease Friday, March 23: The Value of a Solid Ethics Program Friday, April 20: Government Contracting Friday, May 18: Employee Handbook Issues Friday, June 8: Succession Planning Friday, September 21: Non-Compete Agreements Friday, October 19: Classifying Employees Friday, November 16: Keeping Personal Information Personal **As always, our Lunch&Learn; events are free and are held at noon in our office located in downtown Bethesda at 4641 Montgomery Avenue, Suite 300. Lunch is provided and there is ample parking in the Waverly Street garage adjacent to our building. Since space at these events is limited however, we ask that you confirm your spot by calling Chantice Cain at (301) 657-7590 or by emailing her at ccain@pkhammarlegal.com. Bring your questions, whether they are related to this month’s topic or not, and we look forward to seeing you. For more information, contactinfo@pkhammarlegal.comorsubscribe! ARE YOU A LANDLORD OR A TENANT? August 21, 2012Many of PK Hammar Legal’s clients are commercial or residential landlords, and many of our clients rent space in both commercial and residential buildings. While the law presumes that commercial landlords and tenants have equal knowledge and bargaining power, residential tenants are often afforded extra protection because of the perceived unequal bargaining power between residential renters and the supposedly more savvy rental real estate owners. While this is not necessarily the case, residential landlords and tenants alike should make every effort to educate themselves as to their respective rights and responsibilities regarding the lease agreements they must enter into in order to rent or occupy real property. One area of the law in particular seems to cause more problems for our clients than others, and that is the law regarding the acceptance and return of security deposits. Maryland, Virginia and the District of Columbia have differing rules for the treatment of security deposits and you should of course consult an attorney barred in the jurisdiction in which the rental property is located for definitive advice. Using Maryland law as an example, the law governing security deposits can be found in Section 8-203 of the Real Property Article, Annotated Code of Maryland. One of the most frequent mistakes landlords make concerning security deposits is charging tenants a higher deposit than allowed by law. According to Section 8-203(b)(1), “a landlord may not impose a security deposit in excess of the equivalent of two months’ rent per dwelling unit, regardless of the number of tenants”. Section 8-203(b)(2) states that “if a landlord charges more than the equivalent of two months’ rent per dwelling unit as a security deposit, the tenant may recover up to threefold the extra amount charged, plus reasonable attorney’s fees”. Some landlords, perhaps aware of the above prohibition, nevertheless attempt to improve their position regarding future tenant damages by calling a portion of the security deposit a “pet deposit”, or “last month’s rent”. These landlords would be wise to read Section 8-203(a)(3) of the Real Property Article, which clearly states “ ‘Security Deposit’ means any payment of money, including payment of the last month’s rent in advance of the time it is due, given to a landlord by a tenant in order to protect the landlord against nonpayment of rent, damage due to breach of lease, or damage to the leased premises, common areas, major appliances, and furnishings”. Thus despite a landlord’s understandable desire to require as much of a security deposit as a tenant is willing to pay, charging a deposit in excess of the statutory amount can turn into an expensive lesson for the unwary. At PK Hammar Legal we have attorneys licensed to practice in Maryland, Virginia, the District of Columbia, Pennsylvania and even Florida and Missouri. If you are entering into or otherwise subject to a lease agreement of any type, it pays to consult us for an explanation of your rights and responsibilities. As the judge will tell you, ignorance of the law is no excuse.WHY FORM A CORPORATION?May 22, 2012We at PK Hammar Legal are frequently asked the question: “Why should Incorporate?” After all, you are not required to have a corporation in order to do business. So why do people form corporate entities and what is the benefit of doing so? The primary reason is that corporate entities, if properly formed and maintained, shield a business owner from personal liability in the event of a lawsuit against the business. Put another way, if someone successfully sues a business and obtains a judgment against it, the owner’s personal assets, such as a house, automobile and bank accounts, cannot be seized in order to satisfy the judgment. The recovery is limited solely to the assets held in the name of the business. An unincorporated business, such as a sole proprietorship, does not afford this protection to its owner.Obviously, no business owner plans to be sued. But as attorneys with many years of experience in business and commercial litigation, we can attest to the fact that business owners are served with lawsuits every day. In every case, the lawsuitis an unwelcome surprise to the business being sued, and once the suit is filed it is too late to go back and alter the legal structure of the business to protect assets from judgment. That is why it is essential to discuss the formation of your business entity with an experienced attorney before conducting any business or, if you are already doing business, before any grounds for a lawsuit arise.While it is fairly simple and inexpensive to form a corporate entity and to draft the associated documents necessary in order to maintain compliance with the law, it is not something we recommend be done without the assistance of a lawyer. Although there are forms available on the internet, the consequences of making a mistake in the selection of the type or structure of the entity to be formed are so great that it makes no sense not to seek the guidance of an experienced professional. We at PK Hammar Legal know that running a successful business takes hard work and dedication. In order to help you achieve your goals, we take the time to discuss your business with you, ask questions, and learn about how your business operates so that we can understand how best to serve you. Call us today for a free business consultation. You worked hard to get where you are – let us help you ensure that the results of your hard work are properly protected.
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