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- C Corporation 101 – Everything You Need to Know
C corporations are more commonly known as just corporations. These are usually what are talked about when someone is explaining a big business. They are the classic company with hierarchical structure that textbooks describe. When there is a need for a large or public organization, this is usually what is created either initially or after some time through a conversion.
- Watch Out for These Pitfalls of Minority Ownership
Many individuals dream of owning a business during some point in their life. Some invest a small percentage into a business while leaving themselves available for other investments or full-time employment. When there are owners with a larger interest than these individuals, it is important that minority owners understand their rights and their limitations.
- Can an Owner Refuse to Continue a Profit-Sharing Agreement Due to Expiring Lease?
Some business owners agree to a contractual obligation of profit-sharing when the circumstances are just right. However, knowing what to do when the situation goes sour is important. Some creators of a company are plagued with complications that arise due to factors out of their hands.
- The Necessary Steps to Remove the Owner of a Corporation When Revenue Falls
One common reason to remove an owner or shareholder from a corporation is because he or she is not providing an adequate profit for the business. How shareholders are removed varies state to state.
- When Co-Owners Split, Disaster Strikes
Just like with married couples, many businesses decide to get a “divorce.” However, in this instance getting a divorce may mean the end of an entity that can result in the closure of a business, the loss of jobs and other serious consequences. When business owners are in a dispute, issues can quickly get complicated and nasty.
- Expert Witness: Business Owner Conflicts with Shareholders
Conflicts between business owners and shareholders are not uncommon. The duties and direction between these two groups are often opposing. These conflicts are often more pronounced when dealing with smaller businesses. These businesses may not have as extensive oversight as publicly-traded companies do. Recognizing the adverse nature between the parties can provide an expert witness with the background to explain the conflict to a judge or jury.
- Do Investors in My Small Business Have the Right to Take Over and Issue Shares Without My Permission?
Many small businesses provide the ability for the business to have shares issued. These shares help provide the financial backing that a business often needs to get off the ground. However, in some situations, having shares changes the arrangement related to the ownership and power dynamic of the business.
- When a Buy-Sell Clause May be Triggered
Buy-sell agreements are integral to contracts, various agreements and documents necessary in businesses either during the run of the company or when it is being created. These files are drafted to ensure there are no biased or previously determined manners of transferring the ownership of the company from one party to another.
- Shareholder Rights Against a Director
Some directors in a company start actions that are in opposition of what shareholders want. These decisions may take the business in a direction that is not what may be considered best for transactions, the value of the organization and to accrue revenue.
- Importance of Planning for the End of the Business at the Beginning
When starting a new business, the potential owner should keep in mind what it takes to end the company as well. This may mean a failure, a transfer of ownership, selling the business in pieces or other concerns.