The Delaware Chancery Court has recently approved a demand by Facebook’s shareholders to see their books and records. This demand, called a Section 220 demand, was filed as a means of examining potential wrongdoing by Facebook’s leadership during the Cambridge Analytica scandal. Cambridge Analytica (CA), a now-defunct political consulting firm, was accused of stealing the data of 50 million American Facebook users which it utilized to influence the 2016 United States Presidential Election. Continue reading “Delaware Court Approves Shareholder Demand to See Facebook’s Books”
Oftentimes, when people are discussing corporate taxation, one of the things they’ll refer to is “double taxation,” and how unfair it is. The term may be confusing for people unfamiliar with the tax code, who wonder how it is that corporations can be taxed twice. However, it’s not as complicated as it sounds, and understanding double taxation can make a big difference when deciding how to organize your business.
Continue reading “The Danger of Double Taxation”
Perhaps you’ve been with your business partner for a long time. It’s been years, maybe decades, and for a while, it was working out fine. However, over time you’ve found yourselves growing apart, spending less time together or fighting more frequently than you once did. Even if you still get along just fine otherwise, it might be time to consider a business divorce, for both the sake of your business and for your own sake. Continue reading “When is it Time for a Business Divorce?”
If you are involved in business long enough, you’ll hear about “pass-through” companies, and you might wonder what those are. What’s passing through them, and why would you want something to pass through them at all? Put simply, there are certain kinds of companies that will allow you to treat the company’s income as though it were your own income, which has both benefits and drawbacks. Continue reading “The Benefits of “Pass-Through” Companies”
The United States House of Representatives’ Judiciary Committee has begun to investigate several major tech companies, including Google, Facebook, Apple and Amazon, for alleged violations of antitrust law. The allegations stem from these companies’ dominance of their respective markets, as well as certain alleged anti-competitive practices that allow the companies to keep competitors from encroaching on their market share. A focus in the initial hearing was the impact these companies have had on the news industry, particularly the advertising revenue models of Google and Facebook, which are blamed for a decline in the revenue generated by traditional news media. Continue reading “House Judiciary Committee Opens Antitrust Investigation Into Big Tech”
Most people starting out with their new business are going to have their hands full, simply thinking about whether incorporating is right for them. When they learn there are multiple kinds of corporations, they can start to feel overwhelmed. However, it’s not quite so complicated as it first appears, and there are just a few basic things you need to keep in mind if you’re deciding on how you want to incorporate your business. Continue reading “C-Corps vs. S-Corps: Which Are Right for You?”
When you first start your own business, there’s a chance that you didn’t give much thought to how it was organized. Or, even if you did, the needs of your business can change over time, and what worked for your company when it was first starting out might not work now. Either way, there’s a decent chance that your current business organization needs an overhaul, and here’s how you can tell. Continue reading “When Should You Consider Reorganizing Your Business?”
A Limited Liability Company (LLC) is one of the many business entities that one can form in New York. An LLC is defined as a company that combines elements of a partnership, sole proprietorship, and a corporation. In this type of business structure, the owners, or members, are generally not personally liable for the LLC’s losses and lawsuits.
Operating an LLC may not always go as planned. If you no longer wish to operate your business under the LLC, you may dissolve it. However, it is necessary to properly and officially dissolve the LLC in the State of New York. Failure to properly dissolve the business entity can lead to legal complications and monetary penalties.
Continue reading “Dissolving a Limited Liability Company in New York”
Even though corporations are an omnipresent part of day-to-day life in the modern world, many people don’t know what a corporation is, or why someone would want to incorporate their business in the first place.
A corporation put simply, is a legal entity that exists independently of the people who own and run it. Due to what is known as “the legal fiction of corporate personhood,” corporations are treated as legal “persons” for a variety of purposes, most significantly for the purposes of legal and financial liability. In other words, when a business loses money or gets sued, it would normally be the business’ owner or owners that are held responsible for paying off the business’ debts or paying for any legal judgments. However, when a business is incorporated, those losses and judgments are generally incurred by the corporation, not the owners, and so the owners generally aren’t held responsible if the company can’t pay for everything and goes bankrupt.
Continue reading “Why Incorporate?”
When contracting on behalf of your small business, it is important to identify whether you would like to include an arbitration clause. Many small business contracts include arbitration clauses that mandate all disputes arising out of the claim to be brought in arbitration rather than litigated in court. Before entering into a contract including an arbitration clause, or including one in a contract of your own, it is important to gain an understanding of the process. Continue reading “Are Arbitration Clauses Right For Your Small Business?”