The Lowdown on Legal for Small Businesses with Laura Waits, Attorney
What would you ask an attorney if the meter wasn't running? Vonda and Lori posed exactly that question to Flower Clique members, then brought the answers to Laura Waits of L P Waits Legal, LLC — an attorney (and Lori's friend since their 1986 freshman year) who practiced law for a decade, spent ten years living and working on the Mosquito Coast of Honduras with her family, and returned to Texas to build a niche practice making legal services accessible and simple for everyday small business owners and families.
Your will, your business, and the one takeaway that matters most
Vonda's first question: should a small business owner's will include a clause appointing someone to make business decisions? Laura reframes it beautifully — this is about creating something that outlives you. You need several pieces: a financial power of attorney in case you're temporarily or permanently disabled, and a will that addresses what happens to the business if you pass unexpectedly. Both are state-based, so the specifics depend on where you live.
But before any of that comes the foundational question — and Laura calls it the single most important takeaway of the episode: evaluate your business entity. If you're operating as a sole proprietor, all of your personal assets are exposed if you're sued or can't pay your debts. An LLC (limited liability company) protects your personal assets while avoiding a corporation's double taxation, with income passing through to your personal taxes. If you're still a sole proprietor, Laura's recommendation is blunt: protect yourself, because COVID proved nothing we relied on is guaranteed.
Her advice for the fear of legal bills: find an attorney who loves small business and offers flat fees — a set price for a consultation, a contract review, a will, or an LLC filing — instead of an open retainer and hourly billing. Treat legal services like any other service provider relationship: look for a fair price and a real partnership.
Holiday help: employee or independent contractor?
The most-asked member question: can holiday help be paid as contract workers instead of going on payroll? Laura explains the IRS test comes down to control. With employees, you control not just the result but the how, what, where, and when. The more you dictate, the further the pendulum swings toward employee — and employment taxes.
Vonda tested it with real scenarios. Fifty Valentine's orders, made in your shop, to your photos, your way, corrected when they drift? That leans employee — hire them as a temporary employee and build the tax burden into the math. But if you hand someone creative license — "make these out of your house, buy your own flowers and vases, here's the fee and the deadline" — that looks more like an independent contractor. Event freelancers working from your product and recipes sit in a gray area that Laura says is genuinely situational: just because the industry has traditionally paid freelancers as contractors doesn't mean it survives a closer look, and the financial consequences of getting it wrong are real.
Part-time benefits and pandemic policies
Do you have to offer part-timers benefits? That's both a state-law question and a business decision — but Laura brings it back to fairness and trust. If a part-timer works 30 hours a week, treating them like a 10-hour employee erodes the relationship; one option is prorating your full-time benefits package for a defined part-time role. Given how hard retention is right now, benefits are a serious tool — just make sure what you offer is fair, attractive, and affordable.
On masks and vaccines, Laura is candid: this is uncharted territory, and the rules vary by state. In Texas, a business can post a mask policy — the real question is whether you'll enforce it or highly suggest it. Her practical path: check whether you have government contracts that could be affected, then have genuinely open conversations with your staff, consider offering regular testing, and center everything on protecting the customers who keep your doors open. Lori shares a masterclass she witnessed at a big-box store: a greeter who warmly said hello to everyone and simply offered a free mask to anyone without one — no confrontation, about half said yes, and the store's care for its staff and customers came through loud and clear.
A new kind of legal partnership
Laura is launching quarterly small-group programs for Texas small business owners this fall: a flat quarterly fee covering a group Zoom on pertinent legal issues, two 30-minute consultations, and review of a business document — flipping the narrative that attorneys are out of reach. Texas florists, check out the special package at L P Waits Legal, LLC.
Key takeaways
- If you're a sole proprietor, look hard at forming an LLC — it's the single most important protection for your personal assets.
- Pair your will with a financial power of attorney, and know that your business entity determines how the business passes on.
- The employee-vs-contractor line is about control: the more you dictate how, where, and when, the more that holiday helper is an employee.
- Benefits and COVID policies are state-specific — decide what's fair, affordable, and protective of both staff and customers.
- Find a flat-fee attorney who partners with small businesses before you need one; it can save you enormously down the road.