This week, we’re talking all about working with clients overseas. We’re going to touch on something that we don’t talk about enough when it comes to legally protecting your business: Enforcement.
In this episode, you’ll hear…
Click here to find the full show notes and transcript for this episode.
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Hey there, and welcome back to another episode of Sam's Sidebar, where I tackle your
Speaker:essential legal questions about starting and growing a legally protected online business
Speaker:in ten minutes or less.
Speaker:So, this week, you'll get a legal tip all about working with clients overseas.
Speaker:listener, Raquel, submitted the question, "My business is based in the U.S.
Speaker:However, I coach people all around the world.
Speaker:How do I make sure that my contract protects me?"
Speaker:be asking more often, but we often don't talk about this enough.
Speaker:So, this is a really good question because it hits on a really important thing that we
Speaker:don't talk about enough when it comes to legally protecting your business, which is
Speaker:enforcement. So, we talk about LLCs, and contracts, and S-Corps, and taxes.
Speaker:But we don't talk about enforcement.
Speaker:Don't worry. I'm going to break it down.
Speaker:of course, you need legit contracts.
Speaker:You need an LLC, if that's right for you in your business, you need business insurance,
Speaker:et cetera. But none of that stuff really helps you if you're not able or willing to
Speaker:actually enforce it and to protect your business when push comes to shove.
Speaker:first things first, you can include language in your contract that determines that the
Speaker:only state that you can get sued in is yours, because you get that ability to control it.
Speaker:And so, typically, we say, "Well, if you can control which state your business can get
Speaker:sued in, you're just going to pick yours because it's better to have yours and control it
Speaker:to be one other than 49 other states if you live here in the U.S."
Speaker:to your contract dispute with your client.
Speaker:Again, we would probably choose yours, ideally, because at least we choose yours and we
Speaker:don't have to roll the dice and have all these other states laws apply to us, which we
Speaker:don't know what they are and all that kind of stuff.
Speaker:That allows you to control to not make it possible to get sued all over the place in all
Speaker:these different states, which is expensive and time consuming and stressful.
Speaker:You'd have to hire a lawyer wherever you got sued.
Speaker:also makes it that not all different state's laws apply to your contracts because -
Speaker:goodness knows - that every single state in America doesn't agree on the law, let alone
Speaker:on contract law.
Speaker:So, we need those contract clauses in every single contract, no matter where the person
Speaker:lives who is signing your contract.
Speaker:by the way, these clauses that I'm talking about, the venue and choice of law clauses,
Speaker:they are built into all of my contract templates.
Speaker:All my contract templates are available in my DIY legal template shop.
Speaker:I'll make sure the link is below.
Speaker:But you can buy any legal template you need from me and download it, fill it out in 15
Speaker:minutes or less. And those provisions, along with lots of others, are already built in
Speaker:for you.
Speaker:to get to Raquel's question, too, what happens then if your client lives overseas and
Speaker:then there's an issue, then what?
Speaker:So, usually, when people are asking me this question about, like, can I work with people
Speaker:overseas, I think really what's at the root and the heart of the question is what happens
Speaker:if something goes wrong.
Speaker:So, you would have to try to enforce your contract where they live, technically speaking,
Speaker:because jurisdiction or enforcement is going to be really tricky here in the U.S.
Speaker:So, if you would try to sue them here in the U.S., but they don't live here, the United
Speaker:States doesn't have the ability to go after them.
Speaker:You could also try to explore collections against them in their country if that's
Speaker:something that you would want to do.
Speaker:And in either option, you would need a contract.
Speaker:you would have to have a contract that would state what law and jurisdiction applies.
Speaker:You would have to have a contract stating how much money was owed, and when it was to be
Speaker:owed, and all that kind of stuff.
Speaker:But, generally speaking, that's kind of what you need to consider.
Speaker:it's not impossible to go after somebody for a debt collection, for example, if they live
Speaker:overseas. But because every country's debt collection laws are different, you would want
Speaker:to work with a collections agency or an attorney who specializes in that country's
Speaker:regulations or debt collection practice.
Speaker:So, that's helpful to you if a client fails to pay you who lives overseas.
Speaker:But a lot of times we're also worried about whether or not what we would do in the event
Speaker:of a lawsuit.
Speaker:think sometimes people are asking me this question because they're just wondering if it's
Speaker:legal for you to work with people overseas.
Speaker:And, yes, I mean, you can work with people all over the world.
Speaker:But, of course, scope of practice applies.
Speaker:So, that means you can still only do what you legally are allowed to do.
Speaker:back and listen to Episode 2 of my podcast, and Episode 69.
Speaker:They're are part one and part two on scope of practice, if you want to learn more about
Speaker:that. But that's really if you're wondering, like, is it just legal to work with people
Speaker:overseas, that's typically what you have to consider.
Speaker:where does that leave things for you if you work with clients overseas?
Speaker:Is it worth it? Is it not worth it?
Speaker:Should you not do it? People ask me that all the time.
Speaker:think that's where maybe my opinion is a little unique.
Speaker:Yes, I'm a lawyer.
Speaker:Yes, I nearly lost all blood to my tushy sitting for the bar exam for four days in two
Speaker:states at the same time.
Speaker:But I am a practical businesswoman at the end of the day.
Speaker:And there are always going to be risks in business.
Speaker:I think it's about knowing what you're getting into and deciding whether or not you want
Speaker:to get into it given the risks.
Speaker:So, I think sometimes people are looking for an answer that's like, "What's the thing that
Speaker:has no risk?" And I think in business in general, that's just not really a thing, let
Speaker:alone with legal stuff.
Speaker:So, I think often you're making these decisions saying, "I understand that if this client
Speaker:doesn't pay me, then maybe it's going to be harder to collect or enforce."
Speaker:Yeah, probably. It might not even be worth trying to collect it.
Speaker:I actually have a training in the Ultimate Bundle all about how to figure out when it's
Speaker:worth letting an unpaid invoice go or a refund request go, because the answer is not
Speaker:always to go after the person.
Speaker:the end of the day, I don't think that this stuff should stop you from working with
Speaker:people overseas. I think it's something to be aware of and then you make empowered and
Speaker:informed decisions from that place.
Speaker:I would probably collect payment in full from somebody I work with overseas.
Speaker:Or I'd ask them to use something like PayPal credit so that I would get paid upfront and
Speaker:then whoever they go through gets paid the monthly payments and if it bounces, it goes to
Speaker:them, it's not on you.
Speaker:That's something to consider.
Speaker:could also consider pre-qualifying your clients as much as possible.
Speaker:Reducing the chance of bounce payments in the first place is always the best place to
Speaker:start, in my opinion.
Speaker:I've got actually three email templates for you called Prequalify Before They Buy, which I
Speaker:will link to below.
Speaker:There are three email templates that I actually used in my own coaching business where I
Speaker:would make sure that I got people in for free calls with me and to work with me who are
Speaker:actually prequalified, like ready to go, understood that this was a paid thing, all that
Speaker:kind of stuff, and they work like a charm.
Speaker:So, I'll drop that link for you below.
Speaker:matter what route you choose to take, either way, it all starts with that solid client
Speaker:contract that has the right clauses in it to protect you.
Speaker:So, you want to make sure you get this client contract in place as soon as possible.
Speaker:If you're about to renew the client, you want to make sure you get that contract in place
Speaker:right now. And that's really important because that's going to have all these provisions
Speaker:in it that are going to protect you and tell the contract, like, what law applies, and
Speaker:where lawsuits have to be filed, and all that kind of stuff.
Speaker:So, it's really important.
Speaker:like I said, you can find any of my instant downloadable templates, like contracts and
Speaker:website policies, in the link below or on my website at samvanderwielen.com/shop.
Speaker:So, I hope that's helpful for you.
Speaker:right. Thank you so much for joining me of this episode of Sam's Sidebar.
Speaker:You can check out the show notes below for related blog posts, resources, and full
Speaker:episodes of On Your Terms.
Speaker:I post a new episode every single Monday and Thursday here on the podcast.
Speaker:If you have a question that you would like answered on a future Sam's Sidebar episode,
Speaker:just fill out the link to the form below and submit your question so that I can record
Speaker:this for you in the future.
Speaker:I'm so excited.
Speaker:I can't wait to see what you got for me.
Speaker:Thanks so much for listening to the On Your Terms Podcast.
Speaker:Make sure to follow on Apple Podcasts, Spotify, or wherever you like to listen to
Speaker:podcast. You can also check out all of our podcast episodes, show notes, links, and more
Speaker:at samvanderwielen.com/podcast.
Speaker:can learn more about legally protecting your business and take my free legal workshop,
Speaker:Five Steps to Legally Protect and Grow Your Online Business, at samvanderwielen.com.
Speaker:And to stay connected and follow along, follow me on Instagram, @samvanderwielen, and send
Speaker:me a DM to say
Speaker:hi.
Speaker:remember that although I am a attorney, I am not your attorney and I am not offering you
Speaker:legal advice in today's episode.
Speaker:This episode and all of my episodes are informational and educational only.
Speaker:It is not a substitute for seeking out your own advice from your own lawyer.
Speaker:And please keep in mind that I can't offer you legal advice.
Speaker:I don't ever offer any legal services.