As a small business owner, you’ve most likely read or heard the term “consideration” when reviewing and executing contracts. What exactly is consideration? And why does it matter to understand the idea of consideration in the context of a contract? Well, in order for your contracts to be enforceable, there must be consideration.

The Legal Definition
A lawyer will tell you that consideration is a bargained-for exchange of something of legal value. And “something of legal value” can vary from a promise to do (or not do) something, or creating, modifying or destroying a legal relationship. For a contract to be enforceable, there must be valid consideration.

In short, in order for a contract to be enforceable, each party must give up something…

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As a small business owner, you know the importance of protecting your business’ assets. One of the most valuable assets for many small businesses is its intellectual property. Many business owners spend countless hours deciding on the perfect name and logo for their business. And for many businesses, it’ d be a serious setback if another company started doing business under the same name or logo. It’d be especially devastating if you had no way to keep another company from doing so. You’ve probably read numerous articles that tell you that you should  “register your trademarks.” But you probably haven’t been told why you should register your trademarks. Today, I’m going to explain the primary benefits of registering your trademark with the…

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In a recent article on the inVigor Law Group blog, Kyle Hulten wrote about the definition of a security. “Security” is not just a fancy name for stock in a company. A security can be a variety of different things, including equity, debt, and other investment instruments. The definitions vary from state to state and the federal definition is far from clear. Because there isn’t a clear one size fits all definition of “security,” it makes issuing securities (or issuing something you may not believe is a security) a risky endeavor.

It’s important to learn what a security is because there are serious consequences for failing to comply with state and federal securities regulations. Just ask Bernie Madoff. If you’re ever…

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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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