I hear clients often discuss raising money from friends and family to finance their business. There is a common misunderstanding that you can take on investment from friends and family without having to comply with securities laws. This type of misunderstanding regarding securities laws can lead to serious consequences for the owners of the business. And I wanted to set the record straight so you can avoid unnecessary liabilities when raising money for your business.

What is a security?

To begin, it is important to understand what a security is to understand why this all matters at all. There’s a lengthy definition for what a security is, and boiled down to its essence a security is any contract, transaction or scheme…

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As your small business grows, you may enter new markets, including expanding your company internationally. If you do expand into international markets, you may look to hire independent contractors in a foreign country. When hiring an independent contractor in another country, it is important to understand some of the key considerations before you move forward with the relationship. Today’s post highlights a few key considerations when hiring an independent contractor abroad.

Know the Rules

Before you enter into any new market, you should become familiar with the regulations that will impact your business. When it comes to hiring an independent contractor, you should become familiar with the various employment and tax regulations that will be triggered by your new hire. Different countries…

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If you’ve done any searching online, you’ve probably read that limited liability company (LLC) entity offers flexibility when organizing the management and economic structure of the company. And because of this flexibility, the LLC quickly became the most popular entity to form in order to shield personal assets from business liabilities. One of the areas where LLCs offer flexibility is how to structure payments to owners of the business. Today’s post discusses the fact that owners of an LLC can only be considered “employees” if the LLC elects to be taxed as a corporation.

Can LLC Members be Paid as Employees?

Members (owners) of an LLC cannot be considered “employees” of the business unless the LLC elects to be taxed as a…

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Washington state continues its effort to be one of the more corporate-friendly states by passing a bill that streamlines the process of converting one business entity to another. Senate Bill 5999, which was signed into law by Governor Inslee on March 27, 2014, amends Washington’s Limited Liability Company Act and the Business Corporation Act to allow conversions of Washington LLCs, corporations, and limited partnerships. What’s more is that the bill also allows entites formed in another state (“foreign entities”) to convert into Washington LLCs and corporations.

The bill is set to be incorporated in the Revised Code of Washington in early July 2014. Stay tuned for the updated RCWs!

Why Would You Convert Your Business Entity?

Depending on your type of business and…

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