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Archive for for November, 2016

What Should I Do If I Get In A Fight With My Partner?

November 9, 2016

We work with a lot of partners to develop a lot of businesses, and unfortunately, that means we’ve see a lot of business fights. And they’re never pretty. At some point, perhaps, you didn’t write the perfect partnership agreement. Perhaps, it didn’t have the flexibility that it needed to evolve over time. Perhaps, maybe you did build a really good partnership agreement and even built in the possibility of disagreements or other things that might come up in the life of the business, but you and your partner have just went in different directions.… Read the rest

Definition of Accredited Investor To Be Expanded? (Part I)

November 8, 2016

In our previous blog post Raising Capital Through Exempt Offerings, we talked about some of the most commonly used exemptions for securities offerings.  Of note, we mentioned that Rule 506 promulgated under Regulation D is the most widely used transactional exemption for securities offerings, used in more than 90% of all exempt offerings in the United States.[1]  To understand how exemptions under Regulation D work, it is important to understand the concept of “accredited investor,” as it is often embedded in the conditions of such exemptions. … Read the rest

Contents of an LLC Agreement

November 7, 2016

We talked before about the fact that you want a well written LLC agreement, even if you have a single owner company. You want to make sure your LLC agreement has certain key things in it. You want to make sure that it’s protecting you.

What have we seen? We’ve seen cases where people have fought over the ownership of the LLC. We’ve seen times where liability has not been kept, and we’ve seen people build LLC agreements that don’t give them the flexibility they need to run the business.… Read the rest

Key Issues in Partnership Formation

November 4, 2016

Partnerships are complex. Anytime we are involved in the formation of a company with multiple owners, we typically refer to it as a “partnership.” Now, the legal term partnership is different than the concept of partnership for economic purposes. An economic partnership can take many forms. It might be a partnership agreement, it might be an LLC agreement, or it might be a corporation. The form legally is tailored to a situation, and that’s something you can work on with your legal advisor.… Read the rest

Business Divorce and Attorney-Client Relationship

November 3, 2016

In our previous blog post titled Is My Company’s Lawyer Also My Lawyer?, we talked about attorney-client relationship in the context of an LLC business divorce case.  In that case, Yun, one of the two business partners, refused to produce certain documents in her possession during discovery, claiming attorney-client privilege.  For a party to asset this privilege, however, there must be an attorney-client relationship, which arises when someone contacts an attorney in his or her capacity as an attorney for the purpose of obtaining legal advice. … Read the rest

Business Plans: The Good, the Bad, and the Ugly

November 2, 2016

I work as an attorney and business strategist.

One of the unique things about being in the position that I (and my team) are in, is that we get to see a lot of business plans. We’ve seen the good, we’ve seen the bad, and we’ve seen the ugly. There are certain lessons that we can take away from these plans that we can apply to others. There are things you want to be looking for, to determine which bucket your business plan might fall into, and then uplifting yourself to a better level.… Read the rest

SEC Enforcement Update: Morgan Stanley Agrees To Pay $1 million Penalty for Failure to Safeguard Customer Information

November 1, 2016

As many of you know, there have been a series of big data breaches recently—the BlueCross BlueShield data breach involving more than 1 million members’ subscriber information, the Anthem data breach that exposed more than 80 million patient and employee records, and the Army National Guard data breach caused by an improper handling of data transfer to a non-accredited data center by a contract employee, among others.  With all these high-profile breaches, you’d think companies, especially big corporations, would have had a chance to review their system and close any loopholes. … Read the rest

All postings are intended to be planning tools to familiarize readers with some of the high-level issues discussed therein. No posting is intended to be a comprehensive discussion and additional details should be discussed with your transaction planners including attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity.