Every business should have a proper legal structure and bylaws or an operating agreement that sets forth the rights and responsibilities of its owners or members. While the partnership or corporation structure is better suited to some businesses, limited liability companies (LLCs) have become one of the most popular business structures over the past few decades. The LLC structure provides …
Considerations for Forming a Limited Liability Company for Real Estate
For individuals who own real estate, it is important to consider the best way to structure your ownership. When you are just starting out as an investor in real estate, you may hold title to the real estate personally, but that may not be the most advantageous method of ownership. Another option is to create a limited liability company (LLC) …
Good News for PPP Recipients of $50,000 or Less: Simplified PPP Forgiveness Process
Following the first surge of COVID-19 cases in the United States, many businesses financially impacted by the pandemic have applied for federal funds through the federal government’s Paycheck Protection Program (PPP). One key element of the PPP is loan forgiveness, but business owners who received PPP funds must apply for loan forgiveness. If you received funds and are in the …
Four Things Business Owners Should Know about Trademark Infringement
Against the backdrop of globalization and the expansion of online business activity, trademark infringement is on the rise. Most elements of business branding—name, logo, design—are readily available online, making it easier for people to knowingly or unknowingly use the intellectual property of others. As a business owner, you must prioritize both protecting your own trademarks and avoiding infringement of others’ …
What Happens to a Limited Liability Company After a Member Dies?
Death is almost always a complicated event for the survivors, who have not only emotional but also logistical considerations to manage. However, when an owner (typically called a member) of a limited liability company (LLC) dies, it exacerbates the difficulties for the surviving members. In addition to bearing the loss, they must determine whether the LLC can or even should …
Show Me the Money – How to Open a Business Account
New business owners often wonder which action items to prioritize when launching a new venture. If you recently started or are about to start a business, one of the most important steps you should take is to open a business bank account that is separate from your personal account. Opening a separate account will lay the foundation for more effective …
Ask Cari: What are Legal Issues to Consider Before Hiring?
Despite the challenges facing many businesses, some companies are still experiencing growth. If your business is expanding, you may find that it is time for you to make your first hire. As you begin this process, it is critical to note that expansion, while providing a great opportunity to increase productivity and scale, can also expose your business to additional …
It’s Time to Say Goodbye: How to Close Your Business
The decision to close a business is not to be taken lightly. Although most business owners hope that the process of closing their business will be quick and easy, that is often not the case. Business closures involve complex procedures that require time, energy, and organization. Failure to carefully adhere to these procedures could result in additional expenses and extensive …
More Good News for PPP Borrowers: Simplified Loan Forgiveness Applications
On June 5, 2020, President Trump signed the Paycheck Protection Program Flexibility Act (the Flexibility Act) into law, after lawmakers passed it almost unanimously. The original Payment Protection Program (PPP)—a key component of the Coronavirus Aid, Relief, and Economic Security Act signed in March—and the accompanying guidance issued by the Small Business Administration (SBA) and the Department of the Treasury, …
The Personal Guarantee: 5 Ways Small Business Owners Can Reduce Their Liability
Small businesses make a huge contribution to the U.S. economy. Nevertheless, starting a new business is risky. Lenders view loans to small businesses, particularly start-ups, as among the riskiest they make, particularly when there is little or no credit history or business revenue on which to base their decision. In an effort to lessen their risk, lenders frequently require small …
4 Reasons to Consider Changing Your Business Structure
As your small business expands and evolves, it may make sense to consider changing its structure. Many small businesses start out as sole proprietorships or partnerships, with only one or two owners and no employees. Over time, as your business grows and changes, a more complex business structure may become beneficial. There are several key considerations in deciding whether a …
The Personal Guarantee: 5 Ways Small Business Owners Can Reduce Their Liability
Small businesses make a huge contribution to the U.S. economy. Nevertheless, starting a new business is risky. Lenders view loans to small businesses, particularly start-ups, as among the riskiest they make, particularly when there is little or no credit history or business revenue on which to base their decision. In an effort to lessen their risk, lenders frequently require small …