Conflicts of Interest Among Partners

December 15, 2020 Corporate Finance

Each state has laws governing the operation of corporations, limited liability companies and partnerships.  Included in those statutes are rules outlining the duty of care each owner of the business owes to the other owners.  These state statutes also identify areas where the governing instruments of the entity (the partnership […]

Partnership Distributions – Show Me The Money!

December 4, 2020

Generally, absent an agreement to the contrary, there is no requirement that a business make distributions to its owners.  This and most all other decisions are controlled by the majority.  A shareholder agreement should address how distributable cash flow, which is not limited to profits, should be determined and how […]

Shareholders and Partners: Your Second Marriage

December 4, 2020

The vast majority of businesses, large and small, are private enterprises.  Excluding sole proprietorships, they typically are formed as partnerships, limited liability companies, or corporations.  No matter the legal form of the entity, memorializing the business deal with your partners is crucial. This general understanding and the details of the […]