When business owners form corporate vehicles like LLCs, the common belief is their personal assets are protected from the company's creditors. This true except in cases where the "corporate veil" of security can be pierced. Read more to learn how to protect your business from a piercing the corporate veil action.
Proper classification is essential for businesses because it determines how the company will pay the worker and what the business owes the federal government. Misclassifying workers as independent contractors can invite the wrath of the federal government and the legal system. Read more to understand the nuances of classifying your workers (or yourself) to avoid costly mistakes.
Questions about Independent Contractors vs. Employees? Contact our experienced lawyers at Newburn Law today so that we can answer any questions you might have.
Non-profit organizations are crucial entities in every community. Non-profits often provide stability, resources, and services to many communities in need that local governments cannot, or will not, provide. The most common non-profit organizations are: • Religious organizations, making up 16.7% of all non-profit entities; • Schools and other educational institutions, making up 13.8% of all non-profit entities; and • Foundations and grantmaking organizations, making up 9.2% of all non-profit entities. When starting a non-profit, there are many things you need to consider to operate successfully and achieve your non-profit’s goals. This article dives into 10 of the most important considerations you should keep in mind when starting a non-profit company. If you have any questions about starting your non-profit, contact us today so that we can answer any of your questions.
Understanding farmout agreements A farmout agreement is a contractual agreement between an owner who holds a working interest in a lease, also known as the “farmor,” and another company, known as the “farmee,” who is assigned all or part of the working interest. As noted in the North Dakota L...
On November 6, 2012, Colorado voters passed Amendment 64, legalizing the use and regulation of recreational marijuana. Two years later, Colorado started issuing licenses, and since then, the marijuana business in Colorado has boomed. Sales have increased every year since the market opened in 2014, and they show no signs of stopping. Even the economic slowdown the COVID-19 pandemic caused could not slow the industry down. In fact, marijuana sales in 2020 increased 25% to $2.19 billion when compared to 2019. If you’re looking to get involved in this lucrative industry, contact us now to learn more!
The Colorado state legislature passed a whole array of laws in 2020 that became effective on January 1, 2021. This article explains each of these laws and how they will affect the cannabis industry going forward.
Starting a business can potentially require having or raising a lot of money. Whether it's designing prototypes of a product, renting a space for an office, or buying the technology to run it, there are a lot of costs that you incur before you even officially open up shop. Quite often, when looking at new businesses to invest in, banks and other investors might not want to risk investing in a brand-new company. This is where family and friends funding can be very beneficial and can make sure that you get your business off the ground without as much strain on your own bank account. In general, friends and family funding is a type of crowdfunding where you raise small amounts of money from family members or friends to raise a more significant total amount from other investors. Family and friends funding gives the investor peace of mind because they are investing in someone that they have a personal relationship with, so they are confident in the person and the business that they are investing in.
Privacy laws have been in effect for decades, but developments in technology have necessitated that the laws adapt to address the increasing volume of data and information collected about consumers by Big Tech companies, online businesses, and businesses with an online presence.
Incentive stock options (“ISO”) are corporate benefits that are part of an employee’s contractual benefits package. These benefits allow the employee to buy shares of the company's stock at a discounted price with the extra benefit of possible tax breaks on the profit earned on the stock. Generally, companies typically give ISOs to top-level management, like CEOs or CFOs, or highly valued employees as a type of passive income instead of a higher salary. They are a heavily negotiated term in the employee contracts and are used to persuade sought-after talent to join corporations due to the hefty profits they can yield. The hefty profits stem from the fact that profits made from qualified ISOs are taxed at the lower capital gains rate as opposed to the higher rate for ordinary income.
Waterfall provisions, also known as waterfalls, allow LLC members to decide how to allocate distributions among investors. While many members usually create an operating agreement that allocates distributions in proportion to the amount of investment an investor made, there are other ways a company can make distributions.
Business growth frequently requires capital, but not all forms of capital are created equally. Many businesses seek financing to secure funding, and the corporate finance industry offers a plethora of options. The Small Business Association reported that in 2019, small businesses in the United States had a combined outstanding debt of $644.5 billion. For larger companies in the United States, corporate debt surpassed $10 trillion in 2020. While it is often necessary to raise funds for business growth, it is also vitally important for businesses to ensure that they choose the best forms of financing for their particular circumstances. Mezzanine financing is a unique option for accessing capital. While mezzanine loans can create some financial advantages for businesses, they also carry some potential drawbacks. If you are considering whether mezzanine financing is right for your situation, consider speaking with a knowledgeable attorney at Newburn Law to learn how we may be able to help you determine the best financing options for your business.
A covenant running with the land is a specific legal agreement that applies a current agreement or arrangement to any future property owners, successors or assigns. Covenants running with the land require specific legal language and can have a dramatic affect on the value of an agreement - particularly in the natural resources context. At Newburn Law we can help you understand the fine print in your covenant and determine if it is constructed to survive.
Mergers and acquisitions (M&A) are complex transactions that involve multiple parties, multiple assets, and complicated agreements. When one company purchases another company or two companies merge, there are expectations on the part of each party concerning the quality of assets being purchased, the success of the future company, and a myriad of other issues.
Every party in a lending or business agreement attempts to secure their position through the legal contract created. In many cases, there are certain control terms that are sought by financing partners in order to ensure that debts are paid and that they have security in the event that it appears a borrower may remain unable to continue to pay a debt. Understanding common control terms in these types of agreements can help ensure that your legal and financial rights remain protected. Consider visiting with an experienced business attorney at Newburn Law, to learn more about your rights specific to your contract or agreement.
If you just formed an LLC, or are looking to do so, contact an experienced Newburn Law attorney today to learn more about what you should include in your operating agreement and what issues you might initially be overlooking.
With the rise of the gig economy and availability of independent contractors, many companies are considering hiring independent contractors rather than employees. However, the question has to be asked – when should a company use independent contractors and when should it use employees?
Developing acquisition criteria is essential for any business considering acquiring another company to increase shareholder value. Once a company determines that an acquisition is the most cost-effective way to increase its value, the key to developing an effective acquisition strategy is determining the acquisition criteria the company will use to evaluate target companies.
A good business partnership is like a marriage. You choose your partner(s) for a reason. Transfer restrictions represent your only defense to ended up with a partner you didn't select. However, transfer restrictions can also limit your ability to sell your interests in the business. Contact an experienced Newburn Law attorney to help you balance these needs and ensure the long-term success of your business.
Working capital adjustments in M&A transactions arise for many reasons. Reach out to a business attorney at Newburn Law to ensure you understand how these adjustments can affect the value of your business.
Our experienced business lawyers at Newburn Law, P.C. can help you determine whether franchising is right for your business.
At Newburn Law, P.C. our experienced business lawyers know how a warranty clause can impact your business contracts.
Indemnification is an important aspect of risk management. Contact our experienced business lawyers at Newburn Law, P.C. to discuss what indemnification is and why you should consider it as a business owner.
A transactional lawyer adds value to your business by helping you identify and minimize risks and avoid expensive litigation. Contact an experienced business attorney at Newburn Law, P.C. to help you ensure your rights are protected.