As a member of an LLC, you may owe a fiduciary duty to the company. The two key fiduciary duties are the duty of loyalty and the duty of care. Whether you have a fiduciary duty will depend on the LLC’s management structure and whether you have management responsibilities. Understanding your duties is essential to avoiding liability. What is a …
You’ve likely protected your business with general liability coverage, property insurance, commercial automobile coverage, and workers’ compensation insurance. But for some businesses, operations would come to a grinding halt without certain essential contributors—key persons as we call them. If your business includes any key persons, key-person insurance should be a part of your business insurance planning. What is a key …
You may have done your homework and weighed your options. Perhaps you’ve even considered the tax and non-tax implications for common business entities. We bet you’re also intrigued by the protections certain business entities afford their owners. The “corporate veil” that protects personal assets of the business owners can make a corporation or limited liability company (LLC) look very attractive. …
Although the main purpose of a job description is to, well, describe a job – it actually serves a much bigger role. In fact, a job description can improve a company’s ability to manage employees in many ways. A well-written job description will do the following: Clarify expectations. Employers need to spell out their expectations of what an employee should …
All successful businesses do their best to save money, improve efficiency, and increase profits whenever and wherever possible. This is especially necessary for small businesses on a tight budget. While there are numerous ways to save money, these eight cost-saving measures are among the easiest to implement: Bargain. Bargaining with vendors is one way to save money. Examples are working …
Securities law is a complex minefield that terrifies even the most seasoned lawyers. As a small business owner, it is your responsibility to make sure you’re complying with all the securities laws, both federal and state, that may apply to your business. Most people think that only corporate stock qualifies as securities, but did you know that LLC ownership interests …
Entrepreneurship has been called the new American dream. Hanging a shingle starts with an idea that develops into a business plan, but not without careful financial and legal considerations. Among the decisions that new business owners grapple with is whether to form a limited liability company taxed as a partnership (LLC) or a corporation making an S election (S corp).* …
If you’re thinking of starting a business (or already have a business in the works), make sure that the name you use is not already taken. Original names are essential for three reasons: marketing power, clarity, and trademark infringement avoidance. For example, if you’ve decided to open a coffee shop, it’s fairly easy to determine that the name “Starbucks” is …
The term “at will employment” may be interpreted many ways by a lay person, but it is actually a legal term meaning that either party (employer or employee) may terminate employment at any time without notice for any reason (with limited exceptions), unless there is a contract stating otherwise. However, a contract may modify that by wording such as “I …
In New York State, there is no requirement for employers to provide sick day benefits to employees (either paid or unpaid). However, Section 195.5 of the New York Labor Law states: “Every employer shall notify his employees in writing or by publicly posting the employer’s policy on sick leave, vacation, personal leave, holidays and hours.” If an employer does not …
What happens when you form an LLC in another state but want to regularly conduct business within the State of Illinois? These are called “foreign LLC’s.” A foreign LLC must be admitted by the Illinois Secretary of State to transact business in Illinois. To do this, the foreign LLC must submit an application for admission to transact business as a foreign …
Being active on social media is hardly a choice anymore for small to medium sized businesses—it’s a given. After all, your customers are there. Connecting with your target audience in the social web can boost your brand and level the playing field between you and big competitors with larger advertising budgets. But before you rush out to tweet a deal …