I often talk with small business owners about exiting their businesses. Most of the time, there’s no buy sell agreement and the business owner just wants to be “bought out” at a “fair price.” If all owners agree on terms, the separation can be quick and easy. However, this is rarely how it actually plays out. Instead, owners tend to butt heads and struggle to determine a reasonable price for buying out the withdrawing owner. In some situations, the owners can’t decide on reasonable terms of separation and as a result the business suffers. In order to avoid this mess, it is important that you understand the importance of putting together a simple buy sell agreement. Today I’m revisiting some…

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Last Friday, the Washington Senate passed an amended version of crowdfunding bill HB 2023. The bill passed through the Senate by a 46-2 vote. With only a few hours to spare on Friday afternoon, the Senate put the bill to a vote and it was passed by an overwhelming majority. What does this mean for small businesses in Washington?¬†It means we’re one step closer to allowing small businesses to raise capital through¬†crowdfunding, i.e. advertising your securities offering to the public and allowing the public to invest in your company for equity (a piece of the pie).

History of crowdfunding
Well before the passage of the JOBS Act on April 5, 2012, a group of entrepreneurs and investors began pushing the idea of…

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A recent post on the inVigor Law Group blog explored the idea of “agency liability.” Agency liability refers to liability for actions of employees and owners of a company when acting on behalf of the company. I’ve highlighted some of the key points for you in today’s post.

When two people (or companies) agree to allow one person to act on behalf of the other party, the acting party is referred to as an “agent.” The other party–the one that authorized the agent’s actions–is referred to as the “principal.” Why does this matter to you? Because figuring out the agency relationship is important in determining whether contracts and agreements that your agent enters into are binding.

Two Types of Authority

Agents can act…

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You’ve started to finalize all the details to form your LLC. You’re getting ready to file your Certificate of Formation, and you’re trying to decide whether your new venture will be managed by one or more managers or by all the members of the company. In order to do so, you’ll need to understand the difference between a manager-managed LLC and a member-managed LLC.

Flexible and Easily Adaptable
One of the most appealing characteristics of the LLC form is that virtually all aspects of the business can be structured the way you want. State statutes essentially allow the company to structure the day-to-day operations of the company according to the wishes of the owners, so long as such wishes are set out…

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