Bite-Sized Bits of Knowledge


Business Planning

Transfers – Involuntary Death Trigger

Death is a common trigger of an involuntary transfer. Without a trigger, a person’s death does not sever their interest in the business. The heirs of an owner that is a person will be identified by his or her will or by the statute. Such...

Governing Documents – Allocation of Distributions

Corporations (C and S) do not have the ability to allocate distributions of available cash to the partners in any way that is contrary to their percentage interests (pro rata). It’s really simple for them which can be good or bad depending...

Governing Documents – Meetings

Regardless of entity type, it’s important to address meetings. There’s two kinds of meetings: shareholders’ meetings and meetings of management. Shareholders typically have an annual meeting. Management meetings typically meet more...

Governing Documents – Ownership

Governing documents are critical for a lot of reasons, and one of those reasons is to well- document ownership. Each entity has different options. Some have more rights incident to ownership than others. Rights can mean participation in...

Entity Selection: Tying it All Together

As you have seen, there are many options when it comes to entity selection. Each has its own advantages and disadvantages. There’s no one entity that has it all, though LLCs are close though. The most important thing to remember is that...

Introduction to Limited Partnerships

Limited partnerships (LPs) have historically been used in one of two ways: first, private investment funds typically structure their offering entities as LPs because management vests solely in themselves as the general partner. In...

Intro to Limited Liability Companies

LLCs are relatively new business entities. They take the best of corporations and partnerships and merge them into one awesome hybrid entity. It has tremendous flexibility in a variety of important ways, which makes it the right choice in...

Introduction to C-corporations

Corporations are the oldest of business entities. Like the other business entities that we have talked about, they are relatively easy to form. They can satisfy some objectives and not others. There's some tax considerations and long-term...

General Partnerships

Like sole proprietorships, general partnerships don't require any filings and are created automatically. Lettuce simultaneously convenient and dangerous. General partnerships have their purpose but are typically not recommended. Relative...

Introduction to Formation

Forming a business entity is easy to do, but not as easy to do right. To start, you’ll learn from this video series that forming the wrong entity can be a huge problem. Also, putting the wrong information on the filing can be harmful to...

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