Why Business Owners Need Buy-Sell Type Agreements
August 10, 2023 | Carole Clark Isakson
Most businesses are structured as a type of corporation, limited liability company, or partnership. In many cases, a small business owner will undertake to set up the entity himself, taking advantage of the online documents available at the Secretary of State’s office. However, not all the documents necessary to have a fully formed entity are available through the Secretary of State – be aware that if all you complete are Articles, you’ve only created a shell of an entity (see my prior blog on this topic). Read on to understand why business owners need buy-sell type agreements. The importance of buy-sell agreements A corporation can be fully formed by filing Articles of Incorporation, getting an Employer ID Number (EIN) and entering into Bylaws, Subscription Agreements and opening minutes of the Shareholders and Board. A limited liability company can be fully formed by filing Articles of Organization, getting an EIN, and entering into an Operating Agreement, Subscription Agreements, and opening actions of the Members (and possibly others). A partnership requires a partnership agreement and possibly public filings, depending on the type of partnership. The Secretary of State does not provide all these forms, but even if it did, for an entity with more than one owner there is another document that really should be done…
Read MoreWhy Corporate Records Matter
August 10, 2023 | Carole Clark Isakson
Most people know that a key step in starting a business is creating an entity (an entity can protect your personal assets). Many of those people will go online to the Secretary of State website, find the form for Articles, and complete those online. With Articles in hand the company can now get an EIN. But is that enough? Are you going to have all the benefits of running the business as an entity if you only take these two steps? Read our blog to understand why corporate records matter. The short answer is NO Some of the reasons for this answer are simple: A fully formed entity also needs documents that show who owns it, and how the company will be run, among other things. Those initial documents won’t show who actually owns the company or who the officers are, and they don’t contain any rules on how the company will be operated. Some specialized types of entities require provisions that aren’t in those forms but are required by law. The importance of complete corporate records At least once a month we interact with clients with ongoing businesses that realize they never really finished forming the entity – and now are trying to sell it, or get a loan, or defend a lawsuit….
Read MoreADA Compliance and Web Design: What You Need to Know
August 10, 2023 | Carole Clark Isakson
Is your website ADA compliant? The Americans with Disabilities Act (ADA) requires that all electronic information and technology be accessible to those with disabilities. The US Department of Justice provided very specific guidance in this area in 2010, but MANY organizations are not compliant. In fact, according to a recent StarTribune article, citing a survey by the Institute for Disability Research Policy and Practice at Utah State University, 96.3% of the most visited websites are not fully compliant with the accessibility requirements of the ADA. If the ADA applies to your business, it applies to your website. The Cost of Noncompliance What does this mean for you? Litigation is on the rise in this area with some lawyers and law firms focusing on filing lawsuits against companies with non-compliant websites. Lawsuit costs and alleged damages can easily exceed $100,000. If your website isn’t compliant and the ADA applies to you, it’s time to improve your website. Even better than legal compliance, however, is the fact that making your website compliant will expand your marketing to a group of potential clients and customers that you were missing (and that were perhaps missing you). How to Improve Your Website The best way to ensure that your website is ADA compliant is to contact your web developer or…
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