Force Majeure Clause
As the calamity continues to change and governments around the world organize to solve the immediate threat, the long-term strategic impacts of COVID-19 also require analysis and strategic planning. All businesses, regardless of size, should prepare for the long-term impacts of COVID-19 in the workplace. In addition to the immediate effects on their operations, it is equally important to make sure they are prepared for a possible economic downturn in these moments. Confronting legal needs can seem like a daunting task at this time, but it's always best to start protecting your business before it's too late. There are several key legal documents that are essential and will need to be analyzed before you get back to business operations.
Changes to Local Rules and Regulations for Southern Nevada Businesses
With the passing of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, businesses are recommended to review the resources available to them to battle the effects of COVID-19 on their operations. We'll focus on the resources set aside for companies that meet the Small Business criteria. $350 billion has been allocated for the SBA to provide loans of up to $10 million per business. These funds include emergency grants, forgivable loans, or relief for existing loans. The program is intended to help business owners pay for overhead costs such as payroll, rent, and utilities.
A non-compete agreement aids businesses in protecting sensitive information. A well written non-compete agreement can protect a business' interests in many scenarios. This information can range between a wide variety of business aspects which include strategies, financial info, specialized training, clientele - you name it. These types of agreements are important for any business that employs people who are subject to sensitive information. We've discussed the most recent changes to Nevada non-compete agreements in a previous blog (Is Your Nevada Non-Compete Agreement Still Valid?) and today we'll go into more detail as to what you would want in a non-compete agreement as a business owner.
There are many ways to help your business's bottom line. One of the fastest ways to achieve this goal, if done correctly, is through mergers and acquisitions. You've probably heard of the term before, and have a general understanding of what happens to companies when this occurs, but what exactly happens when a company merges with another or is acquired? The answer to that depends on the goals of the businesses involved. In this blog, we'll cover the options you have to consider as it relates to structuring your business entity for a merger or acquisition.
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.