We've mentioned operating agreements in a few blogs, and we thought we'd go over it in more detail in this entry. What is an operating agreement and why does my LLC need one? An operating agreement is a key document for an LLC with a sound legal foundation. An agreement that is acceptable to all managing members of the LLC, even if you are a sole member of the LLC, will help your business run as it was intended. Well written operating agreements should give the LLC members peace of mind. We'll map out the basics of a good operating agreement below.
Company holiday parties are a customary and traditional way for employers to show appreciation to their hard-working, loyal employees. It's also a great way to boost company morale and create a better work environment. However, there are instances where the best of intentions can backfire and create big complications! As fun as company holiday parties may be for everyone, it can be a breeding ground for legal issues. Unfortunately, it can even lead to some of those loyal employees losing their jobs. There are many potential party pitfalls to consider. In this blog, we'll cover the more common minor mishaps as well as major ones.
The Tax Equity and Fiscal Responsibility Act (TEFRA) once governed the auditing process for LLCs that are taxed as partnerships. Previously, the IRS could not hold the LLC responsible for federal income tax deficiencies, only the members of the LLC were liable. TEFRA has since been repealed and effective January 1, 2018 the Bipartisan Budget Act of 2015 governs the auditing procedures. This adjustment allows the IRS to collect underpaid taxes directly from the LLC if the LLC is taxed as a partnership rather than a C-corp or S-corp. This important change will require companies to update their operating agreements.
Signing a commercial lease as a business owner should not be taken lightly. A business owners' biggest expense may be a store-front or office space when they are first starting out. Like any contract, it may be too late to make any changes to a commercial lease once you've signed it. A commercial lease is a legal, binding document that may prevent you from growing your business - or worse, run it into the ground. Here are four simple things to consider before signing your commercial lease.
There are many reasons to invest in a start-up. Small-business investments have been one of the more popular ways individuals and families begin their journey to financial independence. The right investment, in the right company, at the right time can be very lucrative. That being said, there is a possibility of losing your entire investment without ever seeing a profit. Working with an investment broker is one way to go about the investment, but there are many investments that happen privately. Most small-business investment opportunities come from friends, family, colleagues, or by word-of-mouth. If you ever find yourself with an opportunity to invest in a business, we would suggest you tread carefully. Here are some things to remember when preparing to invest in a start-up company.
There are many things to keep track of as a business owner. One of those is your business's current status with the State of Nevada. Keeping an eye on your standing with the state is simple but it's not uncommon for businesses to find themselves in default or revoked status. There are also business owners that find that their business has run its course and decide to dissolve the entity with the state. There is clearly a difference between dissolution and revocation. What are the differences and is it okay to let a business be revoked?
More than half of all new restaurants fail within the first year, and the statistics for other types of business aren't much higher. When you come up with a new business idea, you might spend years researching your idea and comparing other businesses before looking at funding or applying for loans. The most successful business owners plan for the unexpected problems that can pop up in the future.
The range of nonprofit organizations in Nevada is ever growing. It's no secret that nonprofits are eligible for a federal tax exempt status and this makes forming this type of entity popular with potential business owners. But the increasing popularity has also brought more dishonesty. In the current climate of nonprofits, with news stories of organizational corruption increasing, the Internal Revenue Service began to narrow its focus on the organizations and excess benefit transactions.
There are many advantages in Nevada for businesses and entrepreneurs. However, minority-owned businesses have historically been less successful in the state. Many minority-owned businesses don't have access to needed capital. Along with capital, they need proper management and training in order to contend for contracts and stay alive in the market. Beginning next year (2018), Assembly Bill No. 436 will require the Secretary of State to ensure that information for private and public programs to obtain financing and certifications are available to disadvantaged business enterprise.
The Nevada Supreme Court passed a decision last year that may have caused your agreement to become invalid. In the case of Golden Road Motor Inn, v. Islam, the court held that non-compete agreements cannot extend further than what is reasonable and cannot create hardship on the employee. The biggest change from the ruling is the decision that courts may not "blue line" ("blue pencil") contracts, meaning to change or delete terms to make the contract legal.