Fishing Break
August 16, 2023 | Toni PerrierScott Lepak’s mother regularly viewed approaching rainstorms as opportunities to do a little quick fishing before the storm hit because, according to her, that was when the fish were really biting. In a continued shout out to mothers who love to fish and are enthusiastic pressure system weather prognosticators, Bill Huefner and Scott Lepak hit the Mississippi River Sunday afternoon, August 13th, with a huge rain system headed their way. Led by trusty fishing guide Tommy Steffen, Bill and Scott got in on a hot bite for smallmouth bass. While Scott got the coveted first fish award, Bill came on strong with the biggest and last fish. After catching and releasing 41 smallmouth in 4 hours, Scott and Bill are planning their next fishing adventure for September.
Read MoreWhy 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….
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