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Moonlighting: Legal for Business Owners?

Moonlighting: Legal for Business Owners?

By Nina Kaufman, Esq.

Q: If a person is a 50 percent owner in an LLC corporation, is it illegal for that person who owns another company that does the same type of work to go and do work or operate under that business?  Someone mentioned to me that it is a conflict under a law regarding corporate obligation. A: Your question is a good one, and the answer is not black-and-white. Generally, unless you have a provision in your operating agreement (or in your state’s law) that prohibits someone from working in two potentially competing companies at once, it’s not outright illegal for someone to do so. However, it certainly raises questions of loyalty.  After all, if you’re involved in one or more companies and a potential client comes in, through which company do you service the client? State laws do vary, so I’d recommend that you speak to a local attorney to get a definitive answer to your question.  You can find attorneys through your local bar association–look for ones that focus on corporate and LLC law.…

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Nina Kaufman

Flying solo doesn’t have to mean going it alone.

I’m Nina Kaufman.

I know first-hand that running a knowledge-based service business has unique challenges. It’s so much easier when you have an advocate in your corner. Over the past 25 years, I’ve worked with thousands of New York business professionals who want a legal advisor to guide and support them as they navigate the business world.

With wide-ranging experience as a business attorney, strategist, and media authority, I bring the added power of a business lens to the legal issues my clients are facing.

And because I’ve been a business owner myself, I’ve lived through the soaring highs and devastating lows – like when my first law firm failed. So I understand what’s involved to serve great clients, detect business risks early and build a true legacy.

I can’t get those 12 years back. That’s why I have made it my mission to ensure that business professionals like you can become wise and discerning leaders, build a solid business, and live your best life.