Congratulations on taking the steps to incorporating your company. Becoming a corporation has limitless benefits; chiefly, the opportunity to acquire expanded capital and limited liability. The steps involved in becoming a corporation in the eyes of the law can be tricky. It involves elaborate declarations and paperwork. Despite your best efforts to incorporate, things can...
As a business owner, you are tasked with many responsibilities. Chief among them, and probably the most important, is the ability to turn a profit for yourself and other investors. However, turning a long-term profit is never a simple and easy task. It is often a balancing act requiring you to weigh your social responsibility...
As a business owner, you have most likely delegated–or plan to delegate–certain tasks to employees or other individuals under your control. It is simply inevitable. It would be impossible to expect the business owner to take on all the work himself. More often than not, these agents will be given some discretion to conduct business...
Many business owners are under the impression that they don’t need general counsel services. They fail to understand the benefits, subscribe to certain misconceptions, or both. This could eventually cost the company a lot of money, stress, and frustration if it does face legal challenges later on. Here are four of the most common—and harmful—myths...
Agents vs. Independent Contractors Firstly, as a business owner, there are many tasks you will delegate. It is impossible for you to expect that you can handle every aspect of your business by yourself. You are probably going to need to hire others to do work for you, and in fact, courts encourage it. That...
Many business owners have converted their business form to a limited liability company or corporation. This is because partnerships retain traditional liability. As such, those attempting to collect funds from a partnership, including creditors and plaintiffs, can go after the partners’ personal assets in order to satisfy outstanding debts or collections. Therefore, partners in a...
In the ordinary course of business, debts become due. This is especially true when a company goes out of business, and has to pay out whatever assets it has left to the creditors that remain. There are general rules for how these are due, including situations whereby the creditors are paid on a pro rata...
Piercing the corporate veil is an extreme step courts will take only when a corporation is a sham. Courts undertake a delicate balancing act to not disturb the corporate structure while simultaneously impressing upon business owners the importance of abiding by corporate formalities. Piercing the corporate veil refers to the act of a court piercing...