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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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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In a recent post on the inVigor Law Group blog, we discussed some of the early data about the use of Rule 506(C), which is a type of “crowdfunding” available to accredited investors. The data that was released by the SEC provided evidence that companies are using the new rule to raise funds, and the offerings utilizing Rule 506(c) are smaller than traditional private placements under Rule 506(b). What the numbers don’t convey is how accessible this new rule can be for small businesses.

What is Rule 506(c)?
For nearly a century, companies looking to raise investments under Rule 506 were not allowed to publicly advertise the securities offering to investors. Since the JOBS Act was passed, this has all changed. As…

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Litigation is expensive. At best, it’s an unwanted entry on your business’s balance sheet. At worst, a lawsuit could mean going out of business— if the businesses assets must be liquidated to pay a judgment or if the businesses resources must be used for litigation expenses. The following are tips to avoid or limit the impact of litigation.

1. Keep good records.

Without good records, proving what was actually said or done by the parties to a lawsuit is a difficult, if not impossible, task. Further, good records can effectively destroy a factual dispute. Good records can result in a dismissal of the case or at least limit the case to issues of law, rather than factual issues, which…

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