Common Pitfalls When LLCs Elect S-Corp Status
Limited liability companies are generally treated as pass through entities for tax purposes. By default, the members who work in the business are not considered “employees.” Instead, they pay themselves by distributing profits from the LLC. But because they are not employees, the members also have to pay self-employment taxes. To minimize this tax burden, […]
Text Message as Signature: Be Careful What You Agree To
We regularly try to remind business owners and nonprofit directors that they should not do business on a
handshake. Too many problems creep up when the terms of the deal aren’t documented in writing,
especially as time goes on. But a recent case involving text messages illustrates not only when a written conversation might serve as a binding contract but when the terms of that communication might also be construed as a personal guarantee by the person sending the message.
Five Things to Consider Long Before Selling Your Business
You may be surprised to learn that you need to spend a year or two getting your house in order before the business is ready for a potential sale.
Joint Venture Checklist
There are many reasons why you might consider partnering with another business or nonprofit. Often, working with another business that is not a direct competitor can provide your business with some expertise that it doesn’t already have or that you may not have the resources to develop in-house. This can lead to the formation of […]
Nonprofit MOUs vs. Legal Contracts
It’s not unusual for nonprofit organizations to partner or collaborate with other organizations to accomplish a mutual purpose. Often, our nonprofit clients prefer to document these relationships with an MOU or Memorandum of Understanding. But just what is an MOU, and how is it different from a contract? A contract is simply a legally binding […]
Non-Solicitation Agreements
If you’ve worked hard to build your client or customer base, or even put significant time and effort into training your employees or recruiting the right subcontractors, you probably want to protect that investment. Non-solicitation agreements are typically used by businesses of all sizes to ensure that their employees and subcontractors will not solicit (or […]
Terms of Service: What Small Businesses Need to Know About These Oft-Used but Unread Agreements
If you provide a web or app-based service and have questions about your Terms of Service, schedule a consultation today.
Yes, YOU! You Need an LLC Operating Agreement!
Just like you shouldn’t do business on a handshake, you shouldn’t operate your business on a handshake either. But too many entrepreneurs regularly go into business without any formal documentation. If you have business partners, so-called “silent” investors, or took money from friends and family, I cannot stress enough how important it is to have the terms of these partnerships documented in a formal written agreement. Otherwise, it’s just a dispute waiting to happen.
Licensing Agreements: Profiting From Your Valuable Intellectual Property
A licensing agreement is a contract in which you, the licensor, gives someone else, the licensee, permission to do something that they otherwise would not have the right to do. There are many situations in which a small business might use a licensing agreement: While licensing agreements need to be customized to fit your particular […]
Stop Doing Business On Just a Handshake
You’ve been diligently pursuing your marketing plan, and your dream client is finally interested in working with your business. You take some time to hammer out the details, maybe trading multiple emails and phone calls, sometimes even text messages. At some point, the haggling concludes and you get to work providing your service.
