Category - Business
Qualtrics, the 8 billion dollar startup?
November 16, 2018
SAP to buy startup Qualtrics for $8 billion. That is global news and something that has almost rattled the Silicon Slopes here in Utah. Let’s focus on the headline mentioning that German tech giant SAP is paying $8 billion (yes, that’s billion with a “B”) for a “startup” company. Doesn’t that seem like something of […]Read more >
How to work with an attorney (Huffington Post article)–part 3
October 16, 2018
The money stuff matters when you are working with an attorney. So make sure you understand from the beginning how you will be billed.Read more >
How to work with an attorney (Huffington Post article)–part 2
August 27, 2018
In the last post, we started discussing the Huffington Post article titled “My Lawyer, My Friend” and this post is a continuation of that discussion. The premise of the article is that there are important considerations which, if understood and followed by a client, will greatly increase the likelihood that a client dealing with an attorney […]Read more >
Asset or equity sale? How about a little of both via Section 338(h)(10) election?
June 11, 2018
In a business sale transaction, the buyer typically desires to buy assets and the seller usually wants to sell equity. Section 338(h)(10) of the tax code provides a win/win opportunity to both parties (when applicable). There are tax and legal reasons for the customary situation where the seller of a business wants to structure the same […]Read more >
Are verbal agreements binding in Utah?
April 9, 2018
Is a handshake deal valid? Can you enforce a verbal agreement? Verbal agreements can be enforceable as a general matter. However, there are exceptions to this principle. Per the Utah Statute of Frauds, found in Title 25, Chapter 5, certain types of agreements must be evidenced by some form of writing. Below are examples of such […]Read more >
Can I protect my personal assets from business liabilities?
April 2, 2018
Yes. LLCs and Corporations were invented for this very purpose. An accountant reading this post would be quick to point out that there are often important tax considerations involved in the choice between such legal entities. Even so, I the genesis of corporations, partnerships, limited partnerships, limited liability companies and all variations of the same […]Read more >
Why should you use a written contract?
March 29, 2018
Afterall, aren’t verbal agreements enforceable? The short answer to that second question is yes (sometimes). Verbal agreements can be legally enforceable, but such enforcement is often quite difficult. Therefore, even though you CAN enforce a verbal agreement, at least some of the time, I would suggest that in many business transactions, you do not want […]Read more >
Is a single member LLC required to have an EIN?
March 8, 2018
Not always. Even so, an EIN is often required and usually a good idea. A federal employer identification number (also known as an EIN or FEIN) is a nine-digit tax ID assigned to a business entity by the IRS. The easiest and quickest way to obtain an EIN is via the IRS website. When business entities file […]Read more >
You don’t know what you don’t know.
February 23, 2018
This is true for all of us in many areas of our life and concerning a good many subjects. Consider a hypothetical situation where a man walks into his accountant’s office to ask a few questions. (Hopefully, that man was courteous enough to make an appointment, rather than just dropping in.) This gentleman owns a small […]Read more >
What does it mean to be a managing member of an LLC?
February 22, 2018
As the name indicates, the managing member is the manager of a member-managed LLC. Please note that the organizational and management structure of limited liability companies (LLCs) varies greatly. Some LLCs are single-member (i.e., only one owner) and some are multi-member entities. There are LLCs which are member managed, some which are manager-managed and then […]Read more >