Studies vary, but there is no denying that a significant number of businesses in the U.S. have heavy family involvement. Keeping the business in the family has several advantages. Who is more trustworthy than a close family member? However, the harsh reality is that...
Business Law
Why Are Corporate Formalities So Important?
Limited liability is a legal principle that protects business owners and shareholders from being held personally responsible for the debts and liabilities of their companies. Without the liability shield that establishes corporations and LLCs as separate and distinct...
What Is an LLC Distribution?
A distribution from a limited liability company (LLC) is a payment of cash or property made by an LLC to the LLC’s owners, also known as its members. Although state law sets forth certain default rules, LLC members can specify in the LLC’s operating agreement when and...
Preparing to Pass Your Business to the Next Generation
The day-to-day demands of running a company can sometimes leave little time for big-picture reflections on the future. While strategic flexibility allows changes to be made quickly in response to external circumstances, it is also important to set baseline business...
How to Protect Minority LLC Member Rights
The limited liability company (LLC) has only been around since the first LLC statute was enacted in 1977. Within a few decades, it has become the most popular legal entity formed by new US businesses due to its ease of formation, flexibility, low start-up costs and...
Exit Strategies for Business Owners
Starting a business requires a great deal of planning and execution. Exiting from your small business should entail a similar level of forethought and preparation. Nevertheless, some surveys indicate that nearly half of all business owners have no exit strategy.[1]...
CTA Imposes New Small Business Reporting Requirements for 2024
Small business owners will have one more item on their compliance to-do list when the Corporate Transparency Act (CTA) takes effect next year. The CTA,[1] enacted as part of the Anti-Money Laundering Act of 2020 (AMLA), places new reporting requirements on many...
When an LLC Is Not the Best Fit
Business owners who are interested in forming a new limited liability company (LLC) or converting their existing business to an LLC are probably familiar with the benefits of this entity type. While the LLC is a great fit for many companies, there are situations in...
Nepotism and Business Ethics: What You Need to Know
With a family business, the owners are often a married couple who anticipate passing the business on to their children. But there can be a fine line between grooming your children to take over the job and participating in nepotism, the practice of hiring or promoting...
Business Owners: Consider Alternatives to Noncompetes
Noncompete agreements have gained a lot of interest among employers looking to secure their business in the market. However, for reasons we will discuss below, it may be wise to consider using alternative means of protecting your company if you are a business owner....