Archive for the ‘ 10 Things ’ Category
10 Things About Joint Ventures
“Synergy.” “Joint venture” is a generic buzz term referring to any business activity carried on with the active involvement of more than one company or person who share the profits or losses. Importantly, the term “joint venture” means something different to everyone. Proposing a joint venture is the beginning of the negotiation, not the end. [...]
10 Things About Asset Protection Planning in Florida
1. No Lockboxes. Asset protection planning does not depend on sure-fire techniques and strategies that are guaranteed to protect your assets from every creditor in every situation. Instead, asset protection planning requires thoughtful decisions about the manner of owning your assets to cause your most important assets to be least desirable to potential creditors. 2. Act Now! [...]
10 Things About Selling a Business
1. What are You Selling? Early in the negotiations, buyer and seller must agree on what is being bought and sold—company stock (or other equity interests) or business assets. Ordinarily, seller would prefer to sell the company stock, because that will make unknown company liabilities buyer’s problem (subject to seller’s indemnification commitment). However, seller might [...]
10 Things About Buying a Business
1. The Next Right Step. After agreeing in principal to buy the business (through a Letter of Intent, Term Sheet, or handshake), buyer and seller must decide on what comes next. Seller might favor negotiating and signing the purchase agreement, followed by a period of due diligence investigation, followed by closing. Buyer would probably prefer to [...]
10 Things About Estate Planning for Business Owners
1. The Hardest Decisions. For business owners, the business is often the largest (or only) valuable asset of the estate. Who should inherit the business? How much direct control should they have over the business? What if they are bad business men or women? What if they don’t want to continue the business? How important is [...]
10 Things About Creditors’ Claims in Florida Probate
1. Put It in Writing. The creditor of a deceased debtor must file a Statement of Claim with the probate court in which the debtor’s estate is being probated. The Statement of Claim must include a brief statement of the basis of the claim, including whether or not the claim has matured. 2. Racing the [...]
10 Things About the Board of Directors
1. Representative Democracy. The primary purpose of the Board of Directors is to represent the shareholders, to protect their investments, and to ensure that they receive an adequate return. Directors are elected by the shareholders to serve terms of one or more years, concurrently or staggered, as provided in the Bylaws. 2.. The Big Picture. The Board [...]
10 Things About Choosing the Right Business Entity
1. Human Error. Carrying on business without a business entity means that each of the owners is 100% personally responsible for all of the business’s liabilities. This isn’t good. A business entity (corporation, limited liability company (LLC), or limited liability partnership (LLP)) protects the owners from personal liabilities, except professional liabilities and personal wrongdoing. 2. Pass the [...]
10 Things About Florida Homestead
1. Three-In-One. Florida homestead has special status in three different contexts: (1) ad valorem (property) taxation, (2) creditor exemption, and (3) rules of descent. In most cases, property that qualifies as homestead in one context qualifies in the other two, but not always. 2. Taxing Questions. Florida homestead is entitled to a $25,000 property tax exemption. Homestead [...]
10 Things About Selling Stock
1. The Other SEC. Whatever you call it—stock, units, interests—outside investment in a business is a security. The sale of any security is regulated by Federal and state law. This doesn’t mean that you have to “go public” through an IPO just to sell your stock, but it does mean that you have to worry about [...]