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...