You and several friends start a new business and decide to operate it as a limited liability company (LLC). Now that you’ve completed the first step—choosing a business entity—it is now important to prepare an operating agreement. The operating agreement is a contract which governs the operations of the LLC and sets forth the arrangements made among the members, including …
What Every You Need to Know about IRS Form 1099: Reporting and Requirements
If your business made or received payments to independent contractors and entities (other than compensation to your employees) during the calendar year, it’s likely you must file an information return called a Form 1099 with the IRS. You may also need to send a copy of the form directly to the recipient of the payments. Being aware of and meeting …
Keynote Speech: The Cattle Business Really is a Family Business
I had the pleasure of being the keynote speaker last night to the Knox County Beef Association, a county affiliate of the Illinois Beef Association. What a crowd they had for their annual meeting — exciting to witness and be a part of. My keynote focused on family and its importance to the beef industry. You can read it here. …
Don’t Let Change Wreck Your Business: The Buy-Sell Agreement
Divorce. An unexpected death, disability, or retirement. An irreconcilable dispute. These triggering events may put your successful, stable business into a tailspin. Luckily, a buy-sell agreement can help you and your business be better prepared to handle these events. What is a Buy-Sell Agreement? A buy-sell agreement is a legally binding agreement between co-owners of a business that controls what …
Episode 10 of Ag Law Today: National Agriculture Law Center
I interviewed Beth Rumley from The National Agriculture Law Center in this week’s Ag Law Today podcast. You can listen to the recording on YouTube here or on iTunes. A lot of agriculture producers and lawyers forget that this fantastic resource is available to them. I am obsessed with their online Reading Rooms and have been known to nerd out …
Stay in Control: Good LLC Governance
The LLC is a popular way to structure a business because it provides personal liability protection to the members– like a corporation does to its shareholders–but without as many administrative formalities. But if you’re an LLC member, don’t let this lull you into complacency. As a business owner, you’re responsible for the proper governance of the LLC. If a conflict …
Business License and Permit Requirements
If you are starting a new business, it is important not to overlook federal, state, and local business license and permit requirements. Almost every business, even one that is home-based, is required to obtain some form of license or permit in order to operate legally. Failure to do so can lead to fines, and in some cases, the closure of …
Transferring LLC Membership Interests Part 2—Voluntary Transfers
An LLC affords its members a certain amount of personal asset protection. Part of this protection hinges on the restricted transferability of LLC membership interests. Restricted transferability protects the non-transferring members from creditors and unwelcome new members, which upholds the integrity and value of the non-transferring members’ membership interests. Most (but not all) LLCs impose requirements or restrictions on the …
Commercial Space: Should You Lease or Buy?
The location of your small business is an important factor in whether it succeeds or fails. Accessibility to customers, vendors, and employees, proximity to competitors, and zoning restrictions are just a few of the factors you have likely considered. Once you have determined the best location for your business, the next question is whether to lease or buy your commercial …
Transferring LLC Membership Interests Part 1—An Overview
Say you are a member of an LLC. You own membership interests in the LLC. But what if you want to leave the LLC? What if you get a divorce? What if you have creditors seeking immediate repayment? What can you do with your membership interests? The answer depends on how transferable those membership interests are. A transfer of LLC …
Episode 9 of Ag Law Today Podcast: Advanced Directives
I’m talking about Advanced Directives with Deborah Kaminetzky on the most recent Ag Law Today podcast. So many people focus on Last Will and Testaments instead of Powers of Attorneys and Health Care Proxies, which are arguably MORE important. Deborah is amazing.. she hand held me through my first divorce and was a great mentor to me. Don’t miss this …