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...
Business Law
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...