The Problem of Commingling

All corporate governance for privately held businesses can be summed up with two broad statements:

Owners must maintain proper corporate behaviors;
Owners must maintain proper corporate documentation.

“Proper behaviors” means observing required governance actions, protocols, and formalities. “Proper documentation” means consistently maintaining records of proper behaviors so you have a “paper trail” providing evidence of ongoing [...]

Using Business Entities to Make Asset Gifts or Sales

You can use business entities to make asset gifts or sales.   While it’s true there are pitfalls business owners face when they violate asset gifting rules, adherence to the “bona fide sale” rule, a test used by the IRS and the courts to determine whether a “real, actual, or genuine” sale has taken place, will keep [...]

Questions to Ask Your Advisor

Do you have an adviser? You know, an attorney, a CPA, or other financial adviser to help you run your business? Many business owners mistakenly believe they are receiving comprehensive corporate governance support from their CPA or attorney. Here are six key questions, and suggested answers, you need to be asking your adviser to be [...]

Your Business and the Bear Stearns Crisis

I loved this article found in this month’s issue of the Bulletproof Veil newsletter. They cover how your business could be impacted by the crisis at Bear Stearns. Because the courts used common law theories rather than the narrower statutory law definition of “employer” when considering a lawsuit against Bear Stearns, it’s more likely now that you [...]