If you turn on the news (or, as is more likely in today’s world, open up your favorite news website), chances are pretty good one of the first phrases you will notice is “the fiscal cliff.” Whether it’s a discussion of how it’s not really a cliff, or what our various political leaders’ plans for avoiding it may be, the …
Starting a new business is always exciting and often times nerve racking. Most entrepreneurs ask themselves the question, is this the time to start a new business? Many experienced business owners and consultants agree that starting a business in a weak or emerging economy can be a benefit for numerous reasons. Thus, now might be a great time to start …
Serving on a corporation’s Board of Directors can be rewarding to both the company and the individual serving. It often provides an opportunity for the individual Director to provide wisdom, knowledge and valuable experience to the company in which it serves. Serving on a corporation’s Board also brings responsibilities and duties. Authority of a Board of Director In North Carolina, …
In a recent article entitled “When Mark Met Don” from the Wall Street Journal, the author discusses the benefits of a friendship between Washington Post’s Don Graham and Mark Zuckerberg of Facebook. This article brought to mind how many of our business clients (and ourselves) learn from others. Often times, our business clients derive valuable knowledge and wisdom from others …
The end of the year is often a busy time for business owners and other individuals. It is easy to let some seemingly less pressing business and personal legal updates get pushed aside until the new year. Of course, when the new year starts, different challenges and time commitments can cause people to forget about those basic, yet important, legal …
In previous years, serving as a board member for non-profit and/or charitable organizations was perceived as prestigious and a great way to give back to the community. Sure, you were expected to attend a few galas and a board meeting every now and then, but it was all doable, feasible, and most of all – monetarily sensible. Now however, in …
Our lives have been irrevocably changed by technology. We use technology every day and rely upon the usefulness of it. The technology which businesses utilize is normally designed to make work easier, more effective and efficient. As technology advances, so do the minds of those who want to use technology dishonestly or for the wrong purpose. An article in the …
Earlier this year, the United States Court of Appeals for the Fourth Circuit considered a case where a franchisor sought to recover lost profits from a franchisee it terminated for a breach of the franchise agreement. In Meineke Car Care Centers, Inc. v. RLB Holdings, LLC, the Court ruled that even though the franchise agreement did not specifically provide for …
Planning ahead in business generally creates success. Finding the time to plan and think about your business much less be creative in your thinking and planning can be difficult. But this type of planning is normally profitable in the long run. I recently had the opportunity to speak to a group of business owners about planning for success and protecting …
As a successful business owner, you have likely spent the majority of your working life building a business. You have an emotional and financial attachment to the business. Succession planning is essential, whether you value making sure the business is in good hands when you retire or making sure you gain financial security when you exit the business. Some of …
The North Carolina Business Court tugged on the reins of the Department of Revenue (“DOR”) in its recent case, Delhaize America, Inc. v. Lay. In this case, the Court deemed the DOR’s $1 million tax penalty it attempted to impose on Plaintiff Delhaize (“Plaintiff”) unconstitutional since it ran afoul of both Plaintiff’s due process rights as well as the North …
Every limited liability company (LLC) needs to have an operating agreement- whether there is one member or twenty. Unlike the North Carolina Business Corporation Act (N.C.G.S. Chapter 55), the Limited Liability Company Act (N.C.G.S. Chapter 57C) is minimal and does not sufficiently address governance of the company. While Chapter 55 contains many default rules (i.e. rules that apply if the …
When buying a business, there are certain considerations that must be addressed in order to make sure the transaction is precisely what is contemplated by the parties. Some of the issues that often arise can have drastic effects on the value of the business being purchased, the success of the venture and the potential risk associated with not only the …
Without a doubt, many of you have come across options to purchase in contracts. What you may not know about them however, is courts may not always enforce them. So what do courts examine in determining whether to validate an option to purchase? The recent North Carolina Business Court case, NRC Golf Course, LLC v. JMR Golf, LLC, offers tremendous …
Whenever a new year rolls around, you often hear people making resolutions for themselves. But wouldn’t it be great if we could improve both ourselves AND our businesses this year? Such a goal can easily be achieved by formulating a business plan specific to your company. But what is a “business plan”? Generally, it is a plan that lays out …
When people encounter high pressure situations, their bodies react in one of three ways: fight, flight, or freeze. What some employers do not recognize is that when employees find themselves in unexpected high stress situations, more often than not, workers freeze and are unable to adequately deal with the situation unfolding around them. So how can employers prepare employees for …
The North Carolina Secretary of State’s Office recently mailed out “Notices of Grounds of Administrative Dissolution” to businesses which lacked one or more filed annual reports. As you are probably aware, business corporations and limited liability companies which are approved to conduct business in the State by the N.C. Secretary of State are required to file annual reports with the Secretary of State. Being delinquent on filing the annual reports is grounds for administrative dissolution. If a business is administratively dissolved, the business no longer has what is referred to as the “corporate shell” which could create personal liability for the owners, board of directors and officers of the business.
Recent studies show that people who are reading or writing text messages while driving are 23 times more likely to crash. And most people agree that restricting the use of technology for sending and receiving text messages, emails, and other similar communications while driving makes sense. It is simply too dangerous. Effective Dec. 1, 2009, it will be unlawful to …
We’ve all seen the headlines: “Driver in fatal crash was text messaging.” Reading or sending text messages on cell phone while driving is a dangerous practice, and as of December 1, 2009, an illegal one in North Carolina. Effective on that date, it will be unlawful to drive a motor vehicle and use a mobile telephone or other similar digital …
The Federal Trade Commission (FTC) has issued regulations which require financial institutions and creditor’s to develop and implement a written plan to prevent identity theft. Part of the goal of the FTC is to have businesses detect, prevent and mitigate identity theft. The new regulations become effective August 1, 2009. As stated by the FTC, “a creditor is any entity …
