The time to hire a business attorney is before you get into legal trouble. It is much easier and more cost-effective to prevent problems rather than solve them. Further, if you do get into legal trouble it will be much easier to deal with the issues if you already have a solid relationship with
Incorporation and LLC Formation
Set Up Corporation or LLC Before Buying Franchise
Buying a franchise does not automatically provide you with limited liability. The franchisor may be a corporation or LLC but that does not make your own franchise business a corporation or LLC. You must still form your own corporation or LLC in order to obtain the benefits of limited liability. Otherwise, you will have a…
S Corporations Have Low Audit Risk
By Rush Nigut on
Here is an interesting tidbit presented by the California Estate and Business Law Blog.
According to Turbotax the S Corporation has the lowest risk of audit for the various business entities. Those audit risk percentages are:
S corporations .19%
Partnerships .26%
C Corporations .71%
Sole Proprietorships 2.13%
But if you play…
Managing Small Business Risks
New York Small Business lawyer Imke Ratschko presents a helpful e-book on her blog "Small Business Guide to Risk Management – A complete guide for business decision-makers" published by the Association of Small Business Development Centers.
This easy to read guide discusses the many risks that businesses face and provides checklists to assess those risks…
Start-Up Business Resource: Iowa Secretary of State
By Rush Nigut on
Perhaps often overlooked, the Iowa Secretary of State Web site is an excellent resource for the Iowa start-up entrepreneur. In the Iowa business services section of the site a business person can find information about a wide variety of topics including:
1. A guide to the most commonly formed business organization options. The guide…
Don’t Overlook Estate Plan in Protecting Your Assets
By Rush Nigut on
In the last post I discussed incorporation and asset protection. An often overlooked area of asset protection is estate planning. My partner, Matt Gardner of Sullivan & Ward, P.C., has started a new Wealth and Estate Planning blog. In his blog Matt will discuss estate planning, probate, small business planning and asset protection. …
Iowa Incorporation and Asset Protection
By Rush Nigut on
Many advertisements on the Internet tout the benefits of forming a corporation. The first benefit typically mentioned is that a corporation provides "limited libility". Many of these companies would have you believe that if you form your own company for $99.00 you can magically protect your assets from creditors. But asset protection is more than…
Formation of Iowa Business Should Include Buy-Sell Agreement
By Rush Nigut on
An often neglected agreement in the formation of a small business is the buy-sell agreement. Every business that has multiple owners should consider having a buy-sell agreement. Such an agreement covers how an owner can sell shares and how to value those shares. Further, a good buy-sell agreement sets forth what happens in the…
Small Business Corporate Governance
By Rush Nigut on
I recently read an excellent reminder on corporate governance issues written by business and real estate lawyer Traci D. Ellis.
Ellis wrote that good corporate governance is essential to running and growing a business. Here are some of her examples of good corporate governance:
- Hold regular board of director and shareholder meetings in
…
Where Should You Incorporate Your Iowa Small Business?
By Rush Nigut on
Where should I incorporate my small business? I hear this question a lot from would be entrepreneurs in Iowa. The question used to surprise me but after seeing the numerous advertisements for Delaware and Nevada corporations on the Internet I suppose it is a legitimate question.
Delaware has reputation and history on its side. Delaware’s…