Some owners of small businesses want to keep their ownership anonymous for various reasons. That just got a lot harder. The trend in many states is to require disclosure. Just last year, the District of Columbia joined other states in enacting legislation requiring the disclosure of beneficial ownership. Other states like Delaware have resisted the change. Now the federal government has entered the fray with the enactment of the Corporate Transparency Act (CTA). If you are a small business or if you are a small business lawyer assisting a small business, you definitely want to familiarize yourself with the CTA. Under the CTA, small business will have to submit beneficial ownership information to the Department of the Treasury’s Financial Crime Enforcement Network. The information will not be available to the general public. The new CTA accelerates that trend and it will become increasingly difficult to shield beneficial ownership information from government authorities and eventually the public at large.

Мы спонсируем серию ежемесячных юридических вебинаров на английском языке с синхронным переводом на русский язык. Мы выбрали темы, которые могут заинтересовать иностранных юристов, государственных чиновников, крупные корпорации, малые и новые предприятия, а также отдельных лиц, которые могут иметь деловые связи с Соединенными Штатами.

Most entrepreneurs are constantly looking for money to support their small businesses. Startups have three major options for funding: self-funding; loans; equity. In this article, we discuss seed financing, when owners give up equity in their small businesses in exchange for funding from third parties. Article discusses Simple Agreements for Future Equity (SAFEs), convertible notes and preferred shares.

The DOJ on June 1, 2020 issued a revision to its Evaluation of Corporate Compliance Programs. The new DOJ Guidance provides companies general principles and elements to consider when designing, implementing, and updating their compliance policies and procedures. The DOJ explains that the purpose of the new guidance is to assist prosecutors in making informed decisions whether and to what extent the company’s compliance program was effective at the time of the offense, and is effective at the time of a charging decision or resolution. Prosecutors can then use the guidance to determine the appropriate (1) form of any resolution or prosecution; (2) monetary penalty, if any; and (3) compliance obligations contained in any corporate criminal resolution.

If you own a foreign company and are thinking of opening up for business in the United States then you should read this article. Despite the challenges, foreign businesses continue to flock to the United States. This article gives an overview of the major decisions that foreign businesses must make as they explore entering the U.S. market. They usually set up a subsidiary not a branch, and confront issues of where to form the new entity. They consider issues dealing with tax, immigration, CFIUS reviews, corporate structure and other issues as they enter the U.S. market.

The small business of all stripes cheered when the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act provides some relief to small businesses through providing economic injury disaster loans; easing payments on current SBA loans; and then the Mother lode, the Paycheck Protection Program (PPP). The PPP provides huge incentives to small businesses to keep workers on their payroll. There are undoubtedly many government programs in which the bureaucratic obstacles overwhelm the efficacy of the program. The PPP loan program does not appear to be one of them, although the jury is still out. Nevertheless, all small businesses should apply for a PPP loan as soon as possible.

Coronavirus (COVID-19) is the pandemic of a lifetime. Until a few days ago, everything looked normal. The extreme low tide lured everyone out onto the dry cove to collect seashells as the beachgoers glance up to see the impending tsunami on the horizon heading straight for them. The government seems utterly unprepared. How has this affected small business clients? In short, the coronavirus will be devastating for small businesses. This blog outlines some of the major legal issues affecting small business clients as the tsunami is about to rocket onshore.

Corporate Law for Startups

Tuesday, 18 February 2020 by

If you spend the time and expense to incorporate your small business, then you should make sure you observe the corporate formalities. There are many reasons for observing corporate formalities. The most important reason is that if you don’t, you are leaving yourself open to someone trying to “pierce the corporate veil”—getting at your personal assets for the liabilities of the corporation. This blog describes the corporate formalities for a small business.

Fiduciary Duties 101

Thursday, 24 October 2019 by

You may have heard about fiduciary duties, something about loyalty and care, but truth be known, you have no idea what that all means. Let’s set the scene. Your startup company is up and running. You have consulted with your startup lawyer  about forming the company as a limited liability company. What duties do you owe to those who have invested in the company. They are after all part owners and have invested their hard-earned money into your company. You talk with your startup lawyer and he or she explains that you owe the owners a fiduciary duty—fiduciary what, you ask? If you violate these fiduciary duties, you may be personally liable. Well, that should get your attention. This article discusses what a fiduciary duty is and who it is applied to.

Как большому, так и малому бизнесу нужно вводить программы по соблюдению антикоррупционных норм.Всем компаниям, а особенно компаниям, которые работают за рубежом обязательно нужно ввести программы и процедуры, направленные на соблюдение антикоррупционных законов. Эти программы и процедуры можно найти в руководствах по трудоустройству или в нормативных правовых актах. В этой статье мы расскажем о том, что в себя должны включать такие программы.

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