Articles
Cocktail Party Small Talk, or What Happens if I Don’t Have a Will?
As the joke goes, the medical doctor asks the lawyer if he gets pestered about everyday legal problems at cocktail parties, the same as the doctor does about all sorts of everyday physical ailments. The attorney readily responds that he answers all questions...
Restrictive Covenants in Employment Agreements
Employment agreements have become a popular tool in the business world, in both big and small business. Employment agreements establish vital terms and avoid misunderstandings such as “at-will” or other termination provisions. Most employment agreements will contain...
E-Verify: The Electronic Border Patrol for Employee Eligibility
E-Verify, the Internet-based system used to electronically verify the employment eligibility of newly hired and current employees, is now a mandatory requirement for companies to obtain contracts with the federal government and the State of Missouri. E-Verify is...
Gentlemen Farming and Other Side Businesses; Issues in Passive Activity and Self-Employment Taxation
Ted and John are friends from the same town. Each is successful in his professional career (Ted as a dentist, John as an insurance salesman). Ted decides to invest in and do some part-time work at a chicken farm in town, and John, thinking that that sounds like a good...
Options to Avoid Foreclosure: When a Strong Offense Makes a Good Defense
Most people understand the basic construction of a home loan: they receive a loan from a lender and sign a "promissory note," which is a promise to pay the lender for the principal of the loan along with interest. This promissory note is "secured" by a "deed of trust"...
Business Entities: An Alphabet Soup of Possibilities
Many entrepreneurs are familiar with the basic concept of incorporating or organizing a business entity; however, there are so many different types of entities that an entrepreneur can become understandably confused. We recognize those letters at the end of the...
Appealing Real Property Taxes
2009 is a "Reassessment Year" for real property taxes in Missouri. A property owner's right to appeal an assessment is usually available only in "reassessment years." Unless special circumstances exist, the assessment establishes the value for the next succeeding year...
Am I Buying More Than a Business? Successor Liability Issues that May Remain After the Closing
You’re an entrepreneur, and you’ve just found a company you want to buy in order to expand your own business. In setting up the purchase, you’ve decided you want to do an asset purchase. After all, you’ve heard that one of the benefits of an asset purchase is that,...
2009 Employment Law Updates
Keeping up with changes in the law is important for all employers in order to avoid liability and help maintain good employee relations. Recent changes to federal and Missouri immigration law and to the Family and Medical Leave Act rules have recently taken effect or...
Safeguarding a Business’ Intellectual Property: Patents and Trade Secrets for Small Businesses
The small business owner may have intellectual property that is vital to the success of the enterprise. This introductory note explains two methods by which an entrepreneurial business can take steps to protect itself against the loss of assets of great importance to...
Reasonable and Necessary Compensation: Undocumented Work Disqualifies Benefit Reimbursements
Compensation paid by a business, whether a corporation, limited liability or sole proprietorship must be “ordinary and necessary” to be deductible for corporate income tax purposes. If such compensation does not meet the “ordinary and necessary” standard, or if the...
Taxes Beyond Choice of Entity; Minimizing Employment Taxes
When forming a new company, you have a choice of business entities. For most small business owners, electing to be taxed under the Internal Revenue Code as a Subchapter "S" corporation or forming a limited liability company are the obvious choices for the reason that...