BUSINESS ENTITIES — LIMITS ON LIMITED LIABILITY

The overriding benefit to doing business through an entity is limited liability. But there are numerous gaps in liability protection that may not be obvious. This article describes those gaps and how they may affect you. Continue reading

CHECKLIST FOR BUYING A BUSINESS

Where do you start when contemplating the purchase of a business? If you can address the following deal points, you will be ready to move forward:

Always Buy Assets, Not Shares of an Entity. If the business is owned by an entity, such as an LLC or a corporation, a buyer should refrain from purchasing shares or interests in the entity. Instead, the buyer should purchase the assets, such as goodwill, inventory, equipment and intangibles. This shields the buyer from liabilities, creditors, claims by disgruntled employees, etc. of the selling entity, and will generally increase future tax deductions for depreciation and amortization. Continue reading

BENEFITS OF BECOMING A MINORITY OWNER OR MAJORITY OWNER OF A SMALL BUSINESS

If given the opportunity, should you purchase a partial ownership (i.e., some of the outstanding shares) in a small business?  What benefits do the shares confer?   This article explores the benefits and power of majority and minority shareholders of a corporation.  A similar (albeit different) analysis applies for members of a limited liability company.
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