Month: July 2016

When Self-Dealing Becomes an Issue in a Parent-Subsidiary Setting

Directors and officers of corporations owe significant duties to the corporation and others within the corporation. Chief among these duties is the duty of loyalty. The duty of loyalty means that directors and officers must place the interests of the corporation ahead of their own. The most common scenario where the duty of loyalty is …

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Piercing the Corporate Veil: When Business Liabilities Become Personal Liabilities

Corporations and limited liability companies (LLCs) are legally separate entities, distinct from their corporate shareholders and LLC members. As a result, the people who own or manage the business cannot typically be held liable for its debts. This immunity is not without limits, however: if a creditor sues for nonpayment of a debt and certain …

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How to Incorporate in Florida: A How-To on Initial Steps

There are many benefits associated with incorporating a company. For one, it provides easier avenues for investment and access to capital. Additionally, and perhaps most enticingly, it provides its owners with limited liability, in essence shielding any personal assets from possible obligations that go unfulfilled. However, incorporation can be tricky. Without following all of the …

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What Every Business Owner Must Understand About Verbal Contracts

By definition, a contract is any verbal or written agreement that creates legally enforceable obligations between two or more parties. Although Florida law treats verbal contracts as legally binding (except under certain circumstances), the risks may outweigh the benefits when it comes to business agreements, as the terms can be difficult to prove. To create …

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