Category - Business
Supreme Court provides mechanism for states to collect sales tax from online retailers
June 22, 2018
This court decision will be applauded by local businesses and likely mourned by many online retailers. Either way, it represents the Supreme Court overstepping its bounds. The Court is supposed to interpret and uphold the Constitution and statutory laws, not make their own laws based on “economic reality.” Do I support local businesses? You bet. […]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 it more important to hire an attorney or an accountant?
March 19, 2018
Yes. In other words, this is probably the wrong question to ask. Perhaps a better question would be something like “what things should I ask my attorney to do and what items are within the realm of my accountant’s expertise?” I saw an article online recently addressing the question about the importance of an attorney […]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 >
Common Mistakes Made by Business Owners
February 9, 2018
“Only a fool learns from his own mistakes. The wise man learns from the mistakes of others.” ― Otto von Bismarck During my time working as a business law attorney, I have marveled at the wisdom, creativity, and brilliance of many of my business owner clients. There have also been occasions when I have witnessed […]Read more >