Spring is a good season to clean your house or your office, but Winter is the season for cleaning up your inner workings of the business. Why? Because for most companies, December 31st marks the end of the fiscal year. This clean up process can help make sure you didn’t miss anything and gets you […]
What is a Stock Option?
What is a stock option? A stock option is a contract that gives a person the ability to purchase stock at a later date for a specified price. Typically these are used in investment or incentive scenarios as a way to allow the optionee to take advantage of any upside the company faces without having […]
Treatment of Startup Funds: LLC vs Corp
Sometimes a small concept can make a huge difference. Because of the difference between Limited Liability Companies (LLCs) and Corporations, the money you put in to start them is treated in very different ways. Overview of Corporations A corporation is a distinct legal entity from the owners. It was created to separate management from ownership […]
What is Form D?
Form D is a form that must be filed with the SEC anytime you solicit or accept investments from a third party and that investment is exempt from the SEC’s full filing requirements. For example, if you raise $1,000,000 from one investor who is an accredited investor, you likely won’t have to file the full […]
Partner Dispute
Every company is prone to a partner dispute. How can you handle those terrible conflicts that alter the nature of how you do business? Fortunately, you have many options. Partner Dispute A partner dispute is anytime two or more partners disagree to the point it harms the business. This can appear mild, but often is […]
5 Important Considerations for an Operating Agreement
Operating Agreements are the governing documents for Limited Liability Companies. They are where you would specify the rights and responsibilities of the members of the company and how you want the company to be run. This is one of the most important documents you will have for your LLC, and a crucial one when there […]
7 Top Membership Considerations in Operating Agreements
There are countless considerations that must go into designing perfect operating agreements , but there are a few that stand above the rest in importance. Operating Agreements Operating Agreements are the governing documents for Limited Liability Companies. They are where you would specify the rights and responsibilities of the members of the company and how […]
Contracts – The Statute of Frauds
When dealing with contract issues, the first question your attorney will probably ask is: did you get it in writing? The attorney isn’t asking to make her job easier. The attorney is asking because of a concept known as the statute of frauds. Generally, oral and written contracts are equally enforceable, but there are exceptions […]
Tips for Getting Paid
Getting paid: If it doesn’t happen, why are you in business? In your business, arguably the most important aspect of the administration of your business is getting paid. There are various ways you can go about seeking full payment for your services, but which ones work and which work best for you? This blog will […]
Why Under the Table Costs More
A common misconception about business is that paying someone in cash under the table is a great way to save money. This is, however, risky and costly to your business. In this article, we’ll illustrate why. Let’s say you’re an LLC with pass through taxation. Let’s also say you’re the sole owner of the company […]
DIY: EIN Application
Only after your Articles of Organization are accepted by the Secretary of State, the next step in the company startup process is to apply for an Employee Identification Number (EIN) from the IRS. A more comprehensive free guide can be found here. Filing for an EIN is a fairly simple process that takes about 5 […]
Essential Elements of a Contract
In order for a contract to be valid and enforceable, certain elements must be met. The rule on this is actually different for sale of goods versus the sale of services, so this article focuses on services. The differences are subtle and will be noted. Also, it should be noted that just because a contract […]