"With so many online incorporation services in the market, why should I retain a business attorney to help me incorporate and operate my start-up?"
A buy-sell agreement is a business contract most commonly entered into by individuals shareholders and the corporation. In simple terms, a buy-sell agreement is primarily used to restrict the transferability of the shareholder's shares of stock in the corporation by providing for the purchase of the stock by the other shareholders or the corporation upon certain predetermined events (e.g., death of a shareholder, insolvency of a shareholder, disability, retirement, attempt by shareholder to sell stock to a third party). By limiting the transferability of stock, the corporation's existing shareholders ensure that they remain in control and restrict the ability of third parties to obtain stock without their approval.
Yesterday, Acushnet Holdings Corp., the parent company to major golf brands, Titleist and Footjoy, filed for an Initial Public Offering (IPO). According to some leading research firms, the Acushnet IPO could raise as much as $300 million. Acushnet's Form S-1 didn't note whether it intended to list on the New York Stock Exchange (NYSE) or Nasdaq, but it did state that the company intends to list the common stock under the ticker symbol "GOLF."
Entreprenuers and startup businesses in San Diego County should be excited because San Diego Startup Week begins today and runs through Friday, June 17! The week of events "brings together entrepreneurs to share progress, exchange resources, and celebrate the thriving innovation community." With over one hundred and twenty-five events spread across this incredible week, there should be enough programming to interest every entrepreneur and startup business.
Last Thursday, the California Assembly passed AB 1676 (Campos and Gonzalez), which seeks to prohibit businesses and other employers from requesting salary history information from an applicant (or an agent). Further, AB 1676 requires employers, except state and local municipalities, upon reasonable request, to provide the pay scale for a position to an applicant.
One question we commonly receive from small business clients is, "Why does my single-member limited liability company (LLC) need an operating agreement?" To answer this question, we will briefly take a look at the California Revised Uniform Limited Liability Company Act ("RULLCA"), then address possible reasons why an operating agreement may be beneficial.
As we've noted before, online legal preparation services have not solved near as many problems for individuals and small businesses as their expensive television advertisements may lead you to believe. In fact, quite the opposite is true but many don't recognize the shortcomings and instead focus on the apparent cost savings. As one New York business divorce lawyer recently highlighted, documents from the various online legal services companies can often lack some crucial information that may actually cost you much more down the road:
Many Americans are becoming all too familiar with the news that another large business has been the victim of a cyber attack. The most recent victims were two prominent, white-collar law firms based in New York City: Cravath Swaine & Moore LLP and Weil Gotshal & Manges LLP. Some news outlets have even reported that federal investigators are attempting to determine whether these attacks were intended to steal information for insider trading. Whether that's indeed the case, or if the attacks were simply a generic attempt to obtain sensitive information, businesses should pay attention.
About this time each year, The Loftin Firm sends out reminder letters to its business clients reminding them of their upcoming 2016 annual meeting requirement. Far too often, businesses are so focused on driving business-related growth that the simple compliance matters simply fall by the way-side. This, however, is a huge mistake. While annual meeting minutes appear to be an issue of small concern, they are actually much more important than many business people think.
Business owners have new financial accounting rules. As has been widely reported, the Financial Accounting Standards Board released new guidance on lease accounting. Under the new rule, all leases with terms in excess of 12 months must be included on the balance sheet-generally a right-of-use asset, and a liability equal to the present value of the payments over the term of the lease. Private companies and nonprofits must implement this standard for fiscal years beginning after December 15, 2019.