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Archive for for August, 2017

Practical Tips for Setting Up a Board of Directors

August 9, 2017

If you’ve been following our blog, you know we work with business owners to help them build companies that will stand the test of time. Companies that will do more than just what the owner does and that will survive even if the owner is not there. We help them build robust management systems, and often, that means a Board of Directors.

But the question often arises, how do we set up a Board of Directors? How do we make one work?… Read the rest

What is the Difference Between Officers and a Board of Directors?

August 8, 2017

This is a common question I hear when I speak or work with business owners about the differences between board members and officers. How are things allocated?

In a traditional model of corporate governance (which is now imparted in some LLCs depending on the LLC Agreement you use) there is typically a Board of Directors and officers. In a theoretical model, the shareholders of the corporation (or the members of the LLC) will select the directors, and the directors will, in turn, select the officers, so we have a hierarchical structure.… Read the rest

Managing an LLC

August 7, 2017

R. Shawn McBride recently spoke about the choices in managing an LLC.

We’ve been collecting feedback from the community, hearing what types of issues people are dealing with. We have been talking about LLCs versus corporations. One of the recent questions we’ve gotten is “How do I manage my LLC?” If you have questions, send them to me or comment below

Which management structure is best for your LLC? What works for you? It is a personal decision. Figure out what works for your business, and how you want to run your business.… Read the rest

Stop Working Too Many Hours

August 4, 2017

I have a confession to make. I built my law firm, had some early success, but after my initial success, I found that I was working too many hours. I was trading time for money, and the only way I could keep my business going was to keep putting more and more time into it. Finally, I hit a breaking point, and that caused me to fundamentally rethink what I was doing. I had to come up with new ways, which would take less time and effort, to build my business,

What track are you on?… Read the rest

Legal Considerations for Documenting a Joint Venture Company

August 3, 2017

Is it appropriate to have one lawyer document a joint venture (or multiple owner companies) on behalf of the proposed business owners (two or more people)? A number of considerations come into play. All parties involved should weigh and understand these.

#1 Legality

In Texas, if both parties knowingly consent, attorney ethics rules permit an attorney to take on such a role.

#2 Efficiency

Timewise and coastwise, there is certainly an efficiency to having all parties meet with the lawyer, put their agreement together, and move to completion without involving multiple lawyers and the ensuing conference calls, discussions and scheduling issues.… Read the rest

Risks Involved with Using an Independent Contractor

August 2, 2017

R. Shawn McBride recently spoke about the risk of using an independent contractor.

Recently, somebody approached me and asked, “What do I do if I have an independent contractor who may have a contract with somebody else? A prior employer?” They were concerned about the risks.

For example, a business owner was looking to hire somebody as an independent contractor who would truly be independent of her perspective– minimal control and freedom of scheduling. The independent contractor would be working their own hours, so there would be less concern about some of the traditional employee-versus-independent-contractor issues.… Read the rest

Expect Challenges in Partnership Formation

August 1, 2017

When we are involved in the formation of a company with multiple owners, we typically refer to it as a “partnership.” Partnerships are complex because the legal term is different than the concept of partnership for economic purposes. An economic partnership can take many forms, such as a partnership agreement, an LLC agreement, or a corporation. Legally, the form is tailored to a situation, worked out by your legal advisor, your partners, and you.

Regardless of legal form, there are certain things that need to be clearly understood in a partnership agreement.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.