Business Law
Business Law
Business Law
Scratching Up Seed Money
It’s a complex process that involves uncovering sources of money, using the proper means and evaluating whether the timing is good. If the economy is slow, it’s more difficult to raise cash — no matter how clever your business plan is. Round Robin Financing is often done through “rounds,” which occur over time and involve […]
Business Law
Take Notice of Notice Provisions in Contracts
When signing a contract, make sure to check the “notice” clause or provision. It lays out how you and the other party will communicate during the term of the contract. Specifically, it states who the notice should be sent to (such as the CEO, attorney, office manager), where it should be sent (the other party’s […]
Business Law
Gain Employee Loyalty with Commuting Tax Breaks
Commuting can be a nightmare for employees. Your company can help by offering your staff members some financial relief from their commuting hassles. Employees appreciate this benefit and there’s a bonus for your company: You can save money on payroll taxes. Similar to a cafeteria plan election, staff members can have money deducted on a pre-tax […]
Business Law
How Escheat Laws Might Affect Your Business
Escheatment is one of those legal terms you may not know much about. But be it could cost your corporation substantial interest, fines or penalties. The word means turning over to your state any abandoned, lost or unclaimed property, both tangible and intangible. This property is often transferred to the government because a person died […]
Business Law
Lease Business Property to Your C Corporation
It’s generally not a good idea for a closely held C corporation to own assets with high appreciation potential. A classic example is real estate. If your corporation owns property, it’s likely the appreciation will be hit with double taxation when the real estate is sold and you take the resulting cash out of the […]
Business Law
Handling Corporate Shareholder Loans
Borrowing money from your corporation is a viable way to get your hands on some cash without triggering a current tax liability. Of course, the transactions must be structured as a legitimate loan, with repayment terms and all the necessary paperwork. How Below-Market Loan Rules Work When money is loaned by a corporation to a […]
Business Law
Tax-free Divisions of Controlled Corporations
Breaking up a corporation with subsidiaries can be hard to do. However, with the right legal help, you might be able to split apart your corporate group without any dire tax consequences to the companies or the shareholders. Background: If a parent-subsidiary group of corporations meets the requirements of Section 355 of the tax code, […]
Business Law
Get Ready for Due Diligence Long Before a Sale or Merger
It may seem odd, but as soon as you start up a business, you should begin preparing the documentation needed to sell or merge with another enterprise. It may be years down the road but the records often required in today’s M&A environment can be overwhelming. If your recordkeeping has been shoddy, it can be […]
Business Law