Ryan Hogaboam recently wrote on the iVLG blog about what you should know about voluntary, administrative, and judicial dissolution. Dissolution is the process of winding down your business and dissolving the legal entity that is your business. Below I’ve highlighted some key points from Ryan’s post:

Dissolution in Washington

In Washington, closely-held corporations can be dissolved in three different ways: by the shareholders or directors (voluntarily), by the Secretary of State (administratively), or by the courts (judicially):

Voluntarily: By the Shareholders

In order to voluntarily dissolve a corporation, the corporation’s board of directors may ask the shareholders to vote on dissolving the company. Washington’s statutes require two-thirds of the shareholders to approve dissolution for it occur. Following the vote, the company must file Articles…

Read More

As a small business owner, it is important that you are aware of all mandatory regulations that affect your business. One such regulation for employers in Washington is providing workers’ compensation coverage for all non-exempt employees. Today’s post discusses some general information related to workers’ compensation insurance, and highlights certain individuals who are not required to be covered by workers’ compensation insurance.

What is workers’ compensation insurance?
Workers’ compensation provides no-fault insurance coverage for most employers and workers in Washington state. Workers that are unable to work because of a work-related injury or occupational disease may be eligible for partial wage replacement benefits and medical treatment for injuries that occur as a result of their employment. Employers are required to…

Read More

Kyle Hulten recently wrote on the iVLG blog about the value of contingent contracts when negotiating agreements. It’s a great read and below I’ve highlighted some of the key takeaway points from Kyle’s article.

What is a contingent contract?

You probably guessed it. A contingent contract is a contract that includes contingencies, i.e. future events that may occur and change the terms of the agreement. Some of the most well-known contingent contracts are in professional sports. Athletes often receive additional money if they achieve certain goals. Another common example is in the employer-employee context. You may hire an employee and incentivize that employee to work hard by providing a non-discretionary bonus if the employee performs beyond a certain target, e.g. if employee…

Read More

Sorting out your company’s owners’ exit strategy is one the most important considerations when forming an LLC. It may sound odd, but deciding how to get out of your small business in the beginning will save you and your business partners time and money down the road. When it comes to LLCs, one of the primary benefits is flexibility when drafting the operating agreement. This can be especially important when deciding on exit strategies, restrictions, and procedures for your small business. Today’s post highlights some of the more common exit provisions in an LLC operating agreement.

Buy sell provisions detail what will happen when a member of the LLC decides to leave the business, dies, or is otherwise unable to continue…

Read More