What is Limited Liability?
Catherine was a great baker. She sent all kinds of treats into school with her kids and to her spouse’s office. Her friends convinced her to start a bakery business out of her home. She branched out into catering. Eventually, things got so busy she hired some employees who could deliver food to various events for her. One day, her driver, Daniel, got stuck in traffic in July and the A/C in his truck was out. Long story short, the potato salad went bad, and a bunch of people g
Terminology for Corporations and LLCs
Most people know about shareholders, directors and officers: the functions in a corporation. Shareholders are the owners; directors make major decisions about the corporation; and the officers carry out the day-to-day operations. Think of a big publicly traded company. You buy shares of the Coca-Cola Corporation or Apple because you will make money from owning the shares – the companies pay you dividends. As a shareholder, your primary responsibility is to elect the board
Should I form an LLC or an S-Corp?
This is one of the most common questions business attorneys get. Budding entrepreneurs spend a lot of energy on the business plan, marketing, website, sourcing supplies, and other tasks related to the business itself. They are intimidated by the legal aspects of their business. Over the next few weeks this blog will discuss some basic legal concepts for startup businesses. One of the first questions people have is whether they should form a company. And usually the
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