While it is a simple little box to check on the Washington Secretary of State website, with it comes important ramifications. What I’m referring to is the box that asks whether the members will govern your LLC, or if a manager will be designated. The answer to this question can drastically change the outcome of litigation, performance and enforcement of contracts, and the day to day operations of your LLC.

Members of a LLC are like shareholders of a corporation. They typically own an equity interest in the company, have voting rights and, in the case of member-managed LLC’s, manage the affairs of a corporation. A manager of a LLC, on the other hand, does not have to own equity in the company and acts more like an…

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As a small business owner, one of the most important things you can do to ensure you get paid is to streamline your accounts receivable practices. Solid collections practices will help you get paid, get paid faster, and be more likely to be successful if you do end up in a dispute. Here are a few tips from a recent inVigor Law Group blog post:

Be thoughtful in creating your agreement with your customers: this includes collecting money upfront, having a written contract, providing your customers with incentives to pay on time, and shortening your payment terms.
Keep good records: the easiest way to avoid a drawn out dispute over unpaid accounts is to maintain quality records and be ready to present…

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When you’re preparing to start a new business, it is important to understand the various legal entities that you can operate the business as. Depending on the type of entity that you organize your business as, you may be personally liable for the business’ debts. You may also have to report the business’ income on your own individual tax return. There’s no mathematical formula for sorting out the right entity for your small business, but there are some general characteristics of each entity that may help guide your choice.

Over the course of the next few weeks, inVigor Law Group is publishing a series on choosing the right entity. The series will provide you with helpful information about sole proprietorships, partnerships,…

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A recent Washington court of appeals case highlighted the consequences of failing to pay your business and occupation (B&O) taxes if you conduct business in Washington state. In <a href="http://www.courts read this article.wa.gov/opinions/pdf/D2%2044195-1-II%20Published%20Opinion.pdf” onclick=”__gaTracker(‘send’, ‘event’, ‘download’, ‘http://www.courts.wa.gov/opinions/pdf/D2%2044195-1-II%20Published%20Opinion.pdf’);” title=”Space Age Fuels v. State of Washington” target=”_blank”>Space Age Fuels v. State of Washington, Space Age sought to recover B&O taxes that is was forced to pay to the Department of Revenue. The Oregon-based fuel distribution company did not maintain an office in Washington, made no sales or marketing efforts in Washington, and maintained a very limited presence in Washington. Despite its limited presence, Space Age was forced to pay a significant amount of B&O taxes after the Department performed an audit on…

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