“q & a”

Q.:  What are my rights as the minority shareholder who is being laid off by majority shareholder?  I’m a guarantor on the company credit line? We are the only guarantors on the credit line. There are two other minority shareholders, one was laid off nine months ago but kept his shares, and the other is […]

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Post image for Can You Dock an Employee for Damages?

Well, employees are people, too. And they may have some of your company equipment at home (laptop, cell phone, etc.).If they damage the equipment, do they have to pay for it? Can you dock their paycheck? The answer, generally, is no. Many states prohibit companies from making deductions from an employee’s paycheck, other than those required […]

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Post image for Gearing Up For Out-of-State Business

Q.:  I would like to market to first-time homebuyers in New York, put them through a nonprofit loan program of which my company is not affiliated and eventually hand them off to a Realtor in New York.  My company operates in Nevada and is licensed in real estate.  We would collect a referral fee for […]

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OK, so I’m somewhat biased, but I think lawyers can make for great business partners.  We have a knack for detail-orientation that many entrepreneurs would rather gloss over.  We’re careful, read everything, and tend to be risk averse.  A perfect foil for the stereotypically free-spirited business owner. But sometimes, it’s not such a good idea, […]

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Post image for Basic Training: Y is for Yes, You’ll Pay Taxes on Your Home-Based Business Earnings

Here’s the lowdown on taxes when it comes to home-based businesses. If you earn money on it, no matter how little, plan on paying taxes. Doesn’t matter that it’s for a little “walking around” pocket change, for the baby’s diaper fund or to help Grandma get her heart medications. Q.: I was thinking about doing […]

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Post image for Basic Training: X is for X-acting Tax Rules for NFPs

Entrepreneurs occasionally ask me about the value of forming a nonprofit (“not-for-profit corporation” (NFP) in legalese). I suppose they say, “Hmmm . . . nonprofit . . . that means I don’t have to pay taxes!” And to a certain extent, they’re right. Nonprofits are exempt from paying federal and state income taxes, provided you […]

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Q.: Can a partnership use a partner’s family term life insurance policy as a business expense, with the intention of using the policy as a way to buy out the spouse’s interest in the business?   Read on to find out . . . .

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Post image for Kick Start Your Success with a Business Entity

Why open yourself up to personal liability when you don’t need to?  Today’s query comes from someone wanting to know that fundamental first question: “What form of business should I be?” Q.:  I’m wondering what kind of company you would recommend for me to register under for a clothing company. I was thinking going Limited […]

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Post image for Basic Training: Issuing Shares to Investors

Investors can be a real boon to your business, but no question–they’ll want a piece of the action.  What’s involved in issuing shares to them? Q: We currently have a market cap of $200,000 (2,000 shares X $100 per share). We were wondering how to authorize new shares to new investors. A: It’s not unusual for companies […]

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Post image for Basic Training: How to Divide Profits in an LLC

When you’re in business by yourself, the math is easy.  But when you have multiple owners, how should you share the spoils?  That’s the nature of this week’s basic training post. Q: How should I divide profits in an LLC? A: Especially in an LLC, you have many options for how to divide your profits. There’s no hard-and-fast […]

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