1 00:00:10,910 --> 00:00:14,930 Hey there, and welcome back to another episode of Sam's Sidebar, where I tackle your 2 00:00:14,930 --> 00:00:20,720 essential legal questions about starting and growing a legally protected online business 3 00:00:20,720 --> 00:00:21,940 in ten minutes or less. 4 00:00:21,950 --> 00:00:27,620 So, this week, you'll get a legal tip all about working with clients overseas. Our 5 00:00:27,620 --> 00:00:31,250 listener, Raquel, submitted the question, "My business is based in the U.S. 6 00:00:31,250 --> 00:00:34,160 However, I coach people all around the world. 7 00:00:34,160 --> 00:00:41,510 How do I make sure that my contract protects me?" I was so excited to pick Raquel's question because this is a question that people should 8 00:00:41,510 --> 00:00:45,140 be asking more often, but we often don't talk about this enough. 9 00:00:45,140 --> 00:00:49,310 So, this is a really good question because it hits on a really important thing that we 10 00:00:49,310 --> 00:00:54,290 don't talk about enough when it comes to legally protecting your business, which is 11 00:00:54,290 --> 00:00:59,860 enforcement. So, we talk about LLCs, and contracts, and S-Corps, and taxes. 12 00:00:59,860 --> 00:01:02,340 But we don't talk about enforcement. 13 00:01:02,360 --> 00:01:04,880 Don't worry. I'm going to break it down. So, 14 00:01:04,880 --> 00:01:06,950 of course, you need legit contracts. 15 00:01:07,550 --> 00:01:12,500 You need an LLC, if that's right for you in your business, you need business insurance, 16 00:01:13,010 --> 00:01:19,310 et cetera. But none of that stuff really helps you if you're not able or willing to 17 00:01:19,310 --> 00:01:24,800 actually enforce it and to protect your business when push comes to shove. So, 18 00:01:24,800 --> 00:01:30,020 first things first, you can include language in your contract that determines that the 19 00:01:30,020 --> 00:01:36,080 only state that you can get sued in is yours, because you get that ability to control it. 20 00:01:36,080 --> 00:01:41,090 And so, typically, we say, "Well, if you can control which state your business can get 21 00:01:41,090 --> 00:01:45,080 sued in, you're just going to pick yours because it's better to have yours and control it 22 00:01:45,080 --> 00:01:55,010 to be one other than 49 other states if you live here in the U.S." You can also include language in your contract that says what state's law applies 23 00:01:55,010 --> 00:01:58,130 to your contract dispute with your client. 24 00:01:58,580 --> 00:02:03,620 Again, we would probably choose yours, ideally, because at least we choose yours and we 25 00:02:03,620 --> 00:02:07,070 don't have to roll the dice and have all these other states laws apply to us, which we 26 00:02:07,070 --> 00:02:09,930 don't know what they are and all that kind of stuff. 27 00:02:09,930 --> 00:02:16,730 That allows you to control to not make it possible to get sued all over the place in all 28 00:02:16,730 --> 00:02:21,560 these different states, which is expensive and time consuming and stressful. 29 00:02:21,560 --> 00:02:24,680 You'd have to hire a lawyer wherever you got sued. It 30 00:02:24,680 --> 00:02:31,190 also makes it that not all different state's laws apply to your contracts because - 31 00:02:31,190 --> 00:02:36,410 goodness knows - that every single state in America doesn't agree on the law, let alone 32 00:02:36,410 --> 00:02:38,040 on contract law. 33 00:02:38,040 --> 00:02:42,440 So, we need those contract clauses in every single contract, no matter where the person 34 00:02:42,440 --> 00:02:45,350 lives who is signing your contract. And 35 00:02:45,350 --> 00:02:50,030 by the way, these clauses that I'm talking about, the venue and choice of law clauses, 36 00:02:50,030 --> 00:02:52,580 they are built into all of my contract templates. 37 00:02:52,580 --> 00:02:55,940 All my contract templates are available in my DIY legal template shop. 38 00:02:55,940 --> 00:02:57,260 I'll make sure the link is below. 39 00:02:57,260 --> 00:03:01,070 But you can buy any legal template you need from me and download it, fill it out in 15 40 00:03:01,070 --> 00:03:05,540 minutes or less. And those provisions, along with lots of others, are already built in 41 00:03:05,540 --> 00:03:08,270 for you. Now, 42 00:03:08,270 --> 00:03:13,610 to get to Raquel's question, too, what happens then if your client lives overseas and 43 00:03:13,610 --> 00:03:15,070 then there's an issue, then what? 44 00:03:15,080 --> 00:03:18,560 So, usually, when people are asking me this question about, like, can I work with people 45 00:03:18,560 --> 00:03:22,880 overseas, I think really what's at the root and the heart of the question is what happens 46 00:03:22,880 --> 00:03:24,720 if something goes wrong. 47 00:03:24,720 --> 00:03:30,110 So, you would have to try to enforce your contract where they live, technically speaking, 48 00:03:30,110 --> 00:03:34,840 because jurisdiction or enforcement is going to be really tricky here in the U.S. 49 00:03:34,840 --> 00:03:38,990 So, if you would try to sue them here in the U.S., but they don't live here, the United 50 00:03:38,990 --> 00:03:41,270 States doesn't have the ability to go after them. 51 00:03:41,600 --> 00:03:46,370 You could also try to explore collections against them in their country if that's 52 00:03:46,370 --> 00:03:48,530 something that you would want to do. 53 00:03:48,650 --> 00:03:52,310 And in either option, you would need a contract. So, 54 00:03:52,310 --> 00:03:56,660 you would have to have a contract that would state what law and jurisdiction applies. 55 00:03:56,660 --> 00:04:00,500 You would have to have a contract stating how much money was owed, and when it was to be 56 00:04:00,500 --> 00:04:02,360 owed, and all that kind of stuff. 57 00:04:02,360 --> 00:04:07,760 But, generally speaking, that's kind of what you need to consider. So, 58 00:04:07,760 --> 00:04:13,070 it's not impossible to go after somebody for a debt collection, for example, if they live 59 00:04:13,070 --> 00:04:17,780 overseas. But because every country's debt collection laws are different, you would want 60 00:04:17,780 --> 00:04:22,790 to work with a collections agency or an attorney who specializes in that country's 61 00:04:22,790 --> 00:04:25,520 regulations or debt collection practice. 62 00:04:25,520 --> 00:04:30,560 So, that's helpful to you if a client fails to pay you who lives overseas. 63 00:04:30,560 --> 00:04:35,810 But a lot of times we're also worried about whether or not what we would do in the event 64 00:04:35,810 --> 00:04:37,250 of a lawsuit. I 65 00:04:37,250 --> 00:04:41,450 think sometimes people are asking me this question because they're just wondering if it's 66 00:04:41,450 --> 00:04:43,550 legal for you to work with people overseas. 67 00:04:43,550 --> 00:04:46,020 And, yes, I mean, you can work with people all over the world. 68 00:04:46,020 --> 00:04:48,380 But, of course, scope of practice applies. 69 00:04:48,620 --> 00:04:52,430 So, that means you can still only do what you legally are allowed to do. Go 70 00:04:52,430 --> 00:04:56,870 back and listen to Episode 2 of my podcast, and Episode 69. 71 00:04:56,870 --> 00:05:00,020 They're are part one and part two on scope of practice, if you want to learn more about 72 00:05:00,020 --> 00:05:03,680 that. But that's really if you're wondering, like, is it just legal to work with people 73 00:05:03,680 --> 00:05:08,270 overseas, that's typically what you have to consider. So, 74 00:05:08,600 --> 00:05:12,470 where does that leave things for you if you work with clients overseas? 75 00:05:12,470 --> 00:05:13,670 Is it worth it? Is it not worth it? 76 00:05:13,670 --> 00:05:16,490 Should you not do it? People ask me that all the time. I 77 00:05:16,490 --> 00:05:18,860 think that's where maybe my opinion is a little unique. 78 00:05:18,860 --> 00:05:20,030 Yes, I'm a lawyer. 79 00:05:20,030 --> 00:05:26,720 Yes, I nearly lost all blood to my tushy sitting for the bar exam for four days in two 80 00:05:26,720 --> 00:05:28,820 states at the same time. 81 00:05:29,420 --> 00:05:32,820 But I am a practical businesswoman at the end of the day. 82 00:05:32,820 --> 00:05:35,390 And there are always going to be risks in business. 83 00:05:35,390 --> 00:05:40,130 I think it's about knowing what you're getting into and deciding whether or not you want 84 00:05:40,130 --> 00:05:42,110 to get into it given the risks. 85 00:05:42,110 --> 00:05:45,920 So, I think sometimes people are looking for an answer that's like, "What's the thing that 86 00:05:45,920 --> 00:05:50,630 has no risk?" And I think in business in general, that's just not really a thing, let 87 00:05:50,630 --> 00:05:51,770 alone with legal stuff. 88 00:05:51,770 --> 00:05:56,840 So, I think often you're making these decisions saying, "I understand that if this client 89 00:05:56,840 --> 00:06:05,540 doesn't pay me, then maybe it's going to be harder to collect or enforce." So, will it be harder to collect money from clients who live overseas? 90 00:06:05,540 --> 00:06:09,920 Yeah, probably. It might not even be worth trying to collect it. 91 00:06:09,920 --> 00:06:13,760 I actually have a training in the Ultimate Bundle all about how to figure out when it's 92 00:06:13,760 --> 00:06:19,880 worth letting an unpaid invoice go or a refund request go, because the answer is not 93 00:06:19,880 --> 00:06:23,540 always to go after the person. At 94 00:06:23,540 --> 00:06:27,500 the end of the day, I don't think that this stuff should stop you from working with 95 00:06:27,500 --> 00:06:31,550 people overseas. I think it's something to be aware of and then you make empowered and 96 00:06:31,550 --> 00:06:33,860 informed decisions from that place. 97 00:06:34,190 --> 00:06:38,510 I would probably collect payment in full from somebody I work with overseas. 98 00:06:38,510 --> 00:06:43,430 Or I'd ask them to use something like PayPal credit so that I would get paid upfront and 99 00:06:43,430 --> 00:06:48,170 then whoever they go through gets paid the monthly payments and if it bounces, it goes to 100 00:06:48,170 --> 00:06:49,910 them, it's not on you. 101 00:06:50,000 --> 00:06:51,860 That's something to consider. You 102 00:06:51,860 --> 00:06:55,550 could also consider pre-qualifying your clients as much as possible. 103 00:06:55,550 --> 00:07:00,530 Reducing the chance of bounce payments in the first place is always the best place to 104 00:07:00,530 --> 00:07:01,760 start, in my opinion. 105 00:07:01,760 --> 00:07:07,190 I've got actually three email templates for you called Prequalify Before They Buy, which I 106 00:07:07,190 --> 00:07:08,360 will link to below. 107 00:07:08,360 --> 00:07:12,830 There are three email templates that I actually used in my own coaching business where I 108 00:07:12,830 --> 00:07:17,930 would make sure that I got people in for free calls with me and to work with me who are 109 00:07:17,930 --> 00:07:22,100 actually prequalified, like ready to go, understood that this was a paid thing, all that 110 00:07:22,100 --> 00:07:23,910 kind of stuff, and they work like a charm. 111 00:07:23,910 --> 00:07:26,300 So, I'll drop that link for you below. No 112 00:07:26,300 --> 00:07:31,100 matter what route you choose to take, either way, it all starts with that solid client 113 00:07:31,100 --> 00:07:35,090 contract that has the right clauses in it to protect you. 114 00:07:35,630 --> 00:07:40,430 So, you want to make sure you get this client contract in place as soon as possible. 115 00:07:40,430 --> 00:07:43,760 If you're about to renew the client, you want to make sure you get that contract in place 116 00:07:43,760 --> 00:07:48,230 right now. And that's really important because that's going to have all these provisions 117 00:07:48,230 --> 00:07:54,020 in it that are going to protect you and tell the contract, like, what law applies, and 118 00:07:54,020 --> 00:07:57,020 where lawsuits have to be filed, and all that kind of stuff. 119 00:07:57,440 --> 00:07:58,610 So, it's really important. And 120 00:07:58,610 --> 00:08:02,900 like I said, you can find any of my instant downloadable templates, like contracts and 121 00:08:02,900 --> 00:08:07,970 website policies, in the link below or on my website at samvanderwielen.com/shop. 122 00:08:08,540 --> 00:08:10,370 So, I hope that's helpful for you. All 123 00:08:10,370 --> 00:08:14,630 right. Thank you so much for joining me of this episode of Sam's Sidebar. 124 00:08:14,630 --> 00:08:18,560 You can check out the show notes below for related blog posts, resources, and full 125 00:08:18,560 --> 00:08:20,600 episodes of On Your Terms. 126 00:08:20,600 --> 00:08:25,310 I post a new episode every single Monday and Thursday here on the podcast. 127 00:08:25,340 --> 00:08:29,900 If you have a question that you would like answered on a future Sam's Sidebar episode, 128 00:08:29,900 --> 00:08:35,510 just fill out the link to the form below and submit your question so that I can record 129 00:08:35,510 --> 00:08:36,770 this for you in the future. 130 00:08:36,770 --> 00:08:37,820 I'm so excited. 131 00:08:37,820 --> 00:08:39,800 I can't wait to see what you got for me. 132 00:08:43,020 --> 00:08:45,890 Thanks so much for listening to the On Your Terms Podcast. 133 00:08:45,900 --> 00:08:49,800 Make sure to follow on Apple Podcasts, Spotify, or wherever you like to listen to 134 00:08:49,800 --> 00:08:54,750 podcast. You can also check out all of our podcast episodes, show notes, links, and more 135 00:08:54,750 --> 00:08:57,840 at samvanderwielen.com/podcast. You 136 00:08:57,840 --> 00:09:01,620 can learn more about legally protecting your business and take my free legal workshop, 137 00:09:01,620 --> 00:09:06,440 Five Steps to Legally Protect and Grow Your Online Business, at samvanderwielen.com. 138 00:09:06,440 --> 00:09:10,980 And to stay connected and follow along, follow me on Instagram, @samvanderwielen, and send 139 00:09:10,980 --> 00:09:11,730 me a DM to say 140 00:09:11,730 --> 00:09:22,260 hi. Just 141 00:09:22,260 --> 00:09:27,180 remember that although I am a attorney, I am not your attorney and I am not offering you 142 00:09:27,180 --> 00:09:28,800 legal advice in today's episode. 143 00:09:28,800 --> 00:09:33,480 This episode and all of my episodes are informational and educational only. 144 00:09:33,480 --> 00:09:37,860 It is not a substitute for seeking out your own advice from your own lawyer. 145 00:09:37,860 --> 00:09:40,680 And please keep in mind that I can't offer you legal advice. 146 00:09:40,680 --> 00:09:42,700 I don't ever offer any legal services. 147 00:09:42,700 --> 00:09:45,660 But I think I offer some pretty good information.