News & Analysis as of

Business Ownership Operating Agreements

Farrell Fritz, P.C.

Top 10 Business Divorce Cases of 2023

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Some years are easier than others to select the most significant business divorce cases. In this, the 16th year I’ve published this top-10 list, the task is made especially difficult by a veritable flood of court decisions...more

DarrowEverett LLP

Location, Location, Location: Asset Protection for LLC Founders

DarrowEverett LLP on

A primary focus when starting a business should answer this question: What structure provides the most protection? New founders can get bogged down in the minutia about whether to choose a corporation or a limited liability...more

Farrell Fritz, P.C.

Operating Agreement Trumps Postnup in High Stakes Battle Over Transfer of LLC Interest

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Husband owns 99% membership of manager-managed LLC. Children own remaining 1%. Postnuptial agreement says husband’s “interest” in LLC goes to wife. LLC agreement says any transferee is not admitted as a member absent the...more

Robson & Robson, P.C.

Claiming Ownership Of A Company? You Better Have The Receipts

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Over the past few years, the term “receipts” has entered the pop culture lexicon to mean something broader than its traditional definition of a document that acknowledges either the receiving of a product or service, or money...more

Bradley Arant Boult Cummings LLP

Part 1: Pulling Back the Cloak on Phantom Equity in Private Companies: Issues for Majority Owners to Consider in Incentivizing Key...

In the private company context, high-performers, senior executives and other vital employees are a company’s lifeblood. It is therefore critically important to retain these top performers, which often requires that the...more

Farrell Fritz, P.C.

Text Messages Trump Formalities in Ownership Dispute Over Cryptocurrency Business

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The emergence of the Limited Liability Company as the preferred form of closely-held business association in New York has spawned a glut of litigation over disputed membership status in LLCs, many of which are covered in the...more

Bradley Arant Boult Cummings LLP

The Benefits of Reading the Fine Print: Look Under the Hood Before Signing Company Agreements

Private company majority owners and minority investors often focus on the company’s financial health and growth prospects, and may not take the time to review the operating documents of the business – bylaws for corporations...more

Farrell Fritz, P.C.

Winter Case Notes: Tax Estoppel (Not) to the Rescue and Other Decisions of Interest

Farrell Fritz, P.C. on

The New York Times yesterday published an article entitled Climate Change Enters the Therapy Room discussing persons suffering from “climate anxiety.” As a northeasterner, the frigid, snow-blessed, ground-freezing winter...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Lessons from the Tax Court: Smaldino v. Commissioner

A recent Tax Court case, Smaldino v. Commissioner, T.C. Memo. 2021-127, provides important lessons on gifting. The Tax Court found that Louis Smaldino understated the size of his gift to a trust set up for his children...more

Farrell Fritz, P.C.

Series LLCs, Serious Risks

Farrell Fritz, P.C. on

Lately I’ve been approached by clients and potential clients about series LLCs, so I thought it would be worth blogging about.  Basically, a series LLC is an LLC that may create one or more series, each generally having...more

Jaburg Wilk

How to Probate-Proof your LLC Interest

Jaburg Wilk on

Whether I’m working on a business transaction or assisting business owners with their estate planning, I always look at how the ownership of the LLC is structured. While many business owners have set up a revocable living...more

Farrell Fritz, P.C.

It Takes Two to Remove a Tiebreaker

Farrell Fritz, P.C. on

“I don’t get no respect” was a famous Rodney Dangerfield comedy routine. It also could be ascribed albeit less comedically to tiebreakers assigned the often thankless task of resolving deadlock between 50/50 owners or...more

Farrell Fritz, P.C.

An Extreme Case of Petitioner’s Remorse

Farrell Fritz, P.C. on

Many business divorce practitioners are familiar with a phenomenon one might call “petitioner’s remorse” – an often abrupt abandonment of one’s desire to dissolve a closely-held business entity when the opposing party...more

Bowditch & Dewey

Succession Planning is Key to Business Continuity

Bowditch & Dewey on

The COVID-19 pandemic has created a wave of economic uncertainty. Many business owners are thinking about succession planning, but they often do not implement a strategy or take necessary steps until faced with an event that...more

Flaster Greenberg PC

Ten Tips for Avoiding Litigation: Tip # 2: Avoid Doing Business with Members of your Family.

Flaster Greenberg PC on

This tip might sound counterintuitive to you, and, in any event, it might be unachievable, given that most of the businesses in this country start out, at least, as family businesses, but let me explain. Business people make...more

Farrell Fritz, P.C.

Always Check Provenance Before Taking an Assignment of LLC Interest

Farrell Fritz, P.C. on

Buyers of fine art must investigate the work’s provenance before closing the deal. The same holds true for anyone contemplating the acquisition by assignment of a membership interest in a limited liability company....more

Farrell Fritz, P.C.

Episode 19: The LLC’s Two Worlds: A Conversation with Professor Peter Molk (Part One)

Farrell Fritz, P.C. on

This episode features Part One of a two-part conversation with Associate Professor Peter Molk who teaches business law at the University of Florida Levin College of Law and who recently published in the U.C. Davis Law Review...more

Amundsen Davis LLC

Top 3 Initial Legal Issues New Boutique Fitness Studio Owners Face

Amundsen Davis LLC on

Forming a legal entity- Establishing a business entity for your fitness studio can prevent you from being personally on-the-hook if your business is sued. Operating your business as an LLC (or as another entity) can also...more

Holland & Knight LLP

OHA Clarifies Negative Control Restrictions – But Do The New SDVOSB Regulations Limit Its Impact?

Holland & Knight LLP on

Between new regulations from the Small Business Administration (SBA) and decisions from the SBA's Office of Hearings and Appeals (OHA), the limits of acceptable actions by small business owners set on maintaining their small...more

Farrell Fritz, P.C.

Dissension Follows When Business Owners Don’t Put Their IP House in Order

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When you think about protecting a business firm’s intellectual property (IP), usually you think about protecting it from infringement by external actors. But there also are internal threats — even mortal ones — to the...more

Verrill

Lawyers on Tap: Tap Tips for Entity Formation and Taxation

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In this episode of Verrill Voices: Lawyers on Tap, Verrill Dana attorneys Jennifer Green and Jonathan Dunitz discuss the importance of entity formation to the overall success of a brewery business, and the differences between...more

Bowditch & Dewey

Legal Basics: Starting a Brewery 101

Bowditch & Dewey on

Breweries are sprouting up all over, just like we hope spring is! If you are contemplating joining the craze, here are a few tips to keep in mind...more

Farrell Fritz, P.C.

Delaware Contractarian Principles Prevail in Appeal Over Deceased Ace Hotel Founder’s LLC Interest

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The sudden death of Alexander Calderwood, the brilliant but troubled co-founder of the Ace brand of hotels, resulted in some fierce litigation between Calderwood’s estate and Calderwood’s LLC co-member over the nature of his...more

Mintz

Is a Series LLC Right for Your Business?

Mintz on

The Series limited liability company (the “Series LLC”) is more nuanced than an ordinary limited liability company, and for the right user, it provides flexibility that will streamline administration better than other...more

Farrell Fritz, P.C.

Episode 014: Business Divorce Stories: Business Appraiser Tony Cotrupe and Attorney Jeff Eilender

Farrell Fritz, P.C. on

This is the first in what I hope will be a recurring feature of this podcast featuring war stories told by business divorce professionals. In this episode we hear stories from business appraiser Tony Cotrupe (Meliora...more

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