R. Shawn McBride recently spoke about protection and lack of protection concerning LLC.
Hey folks, Shawn here with you. LLCs mean limited liability, right? You formed your company, you don’t have to worry anymore do you? Well, maybe not. Maybe so. Just because you formed an LLC or a corporation with your state and did that basic paperwork doesn’t necessarily mean that you’re going to have liability protection. There’s more to it than that.
You need to run your business like a business.… Read the rest
It’s a common question I get. Do I want to be an LLC? Do I want to set up as an S corporation, or do I want to set up as a corporation? The answer truly depends on the company and your needs and your wants and your future plans. There is no one answer. One is not better than the other. What we have seen is an emergence of the LLC as being a clear choice to be reckoned with.… Read the rest
Do you know who can own an interest in your company? You should, whether you already own a company or plan to establish one.
It’s important to understand how the United States allows ownership so we structure our entities for the possibility of bringing in new partners and new financings. This can all be set up in articles of incorporation.
In the United States, most people – as individuals or entities – can own entities. A corporation can own a limited liability company, and an LLC can own a corporation.… Read the rest
I’m a big fan of partnership agreements done right. But I have no support for the game’s partners sometimes play against each other.
So how do we avoid the gaming?
Let’s start with real-life examples. We have a partnership agreement that includes a buy-sell provision in cases of disagreement. But what if there is no disagreement but one partner wants to force a buyout? Or what if one partner wants to force a sale to a third party based on a right-of-first-refusal provision?… Read the rest
Most lawyer will discourage you from forming a 50-50 partnership. The theory is you never want a company with two equal owners because there’s bound to be a deadlock down the road, and that may prohibit the company from moving forward.
I’ve covered this in a previous blog, but from a business standpoint, 50-50 can be very good. Many partners need to be equal for the business to evolve. We have so many success stories of partnerships that do so much more than an individual could.… Read the rest
If you have a client who has stopped paying you, you might conclude the simple solution is to stop providing the service. Hold that thought.
As a business owner, I understand your reaction.
As a lawyer, I can tell you the first thing to do is review your contract with the client.
Your contract will provide guidance for what you can and can’t do in this situation. If you don’t have a written contract, common law principles may apply. But be very careful before you simply stop performing the service.… 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.