One of the key reasons individuals form limited liability companies (LLC) is to protect themselves from personal liability. However, business owners should never assume that by creating this type of business entity they have no risk of personal liability for their actions. A recent case decided by the Texas Supreme Court on February 23, 2018 highlights this fact.
New business owners have many legal actions and decisions to make. Unfortunately, during the early days of running a company, many business owners forget the importance of licensure.
Each limited liability company (LLC) has its own structure, comprised of one, a few or many investors and decision makers. Like any other enterprise, different members have different roles while representing the larger body together.
Ensuring business continuity should be given just as much thought as other business strategies, but it is often put off or overlooked. According to the U.S. Small Business Administration, less than 30 percent of small business owners have a formal succession plan. Given that 90 percent of U.S. businesses are family owned and less than 15 percent succeed to the third generation, the importance of a succession plan cannot be overstated.
Tax reform is now official, although the path to its passage was certainly divisive. While the political rifts are still evident, some supporters of the tax bill believe that it will lead to a small business boom.
When forming a limited liability company (LLC), business partners often wonder whether they really need a written operating agreement. At the outset, they may feel like they are all on the same page, so putting it in writing in an operating agreement seems like an unnecessary expense. However, this single document could prevent costly partnership disputes that may arise later, and the beginning is the perfect time to create one.
The recent end of the partnership between Sears and Whirlpool illustrates that no business relationship lasts forever. For many businesses, the real challenge is determining when to bring a vendor partnership to a close. That question is complex, but looking at the end of the relationship between retailer Sears and appliance manufacturer Whirlpool can offer some lessons on timing.