Business Transactions

In Which State Should You Organize Your Business?

A United States business owner may organize his company under the law of the state in which he resides or under the law of any other state. There are certain states that have attractive elements in their business law statutes.

Many would place Delaware at the top of the list. Delaware has a well-respected, progressive body of corporate and business entity law and has likely addressed every category of business dispute within its court system. For businesses seeking to minimize tax liability, Nevada and Wyoming, which have no corporate taxes, might be attractive.  In addition, both Nevada and Wyoming allow shareholders to remain anonymous and, like Delaware, have a corporation-friendly court system.

Nevertheless, sometimes, there's just no place like home . . .

Potential Advantages of the Series LLC

A Series LLC is a limited liability company with separate membership series. You can place different assets in each series. The intent is for companies with multiple lines of business or distinct assets to be able to separate those assets while avoiding the administrative costs and time associated with organizing a separate LLC for each asset. 

For example, if you own several parcels of real estate, you can put one parcel in each series. A film production company could place a separate film in each series. A venture funds whose investors don’t want to mix speculative investments with more established businesses could place separate investments in separate series.

StartUp BizCast Interview: “When Business Partnerships Go Bad”

No one can do everything alone – thus the appeal of taking on a business partner or entering into a joint venture or strategic partnership with another company. In many ways, taking on a business partner is like taking on a spouse. Unfortunately, like some marriages, some business partnerships don’t work out and the parties eventually end up seeking a way out.

I recently talked with Steve Mullen of StartUp Bizcast about how business people can protect themselves and their businesses from relationships that go south. Our discussion included the three questions you should always ask before entering any business relationship.

Startup BizCast is targeted to busy professionals and prides itself on brevity.  Each episode is 15 minutes or less.  The weekly show offers small business advice, tips, and education ... all in less time than it takes to have a coffee break!

Listen to the 15-minute show here.

An Introduction to Joint Ventures and Strategic Alliances

For some, a joint venture or strategic alliance may sound like the territory of a Fortune 500 company. In truth, your venture or alliance might be as straightforward as collaborating with a colleague on a software application, teaming up with another company on a marketing campaign, or licensing a product you've developed.

The terms joint venture and strategic alliance are often used interchangeably but there are some distinctions between the two. Here are formal definitions of  “ joint venture” and “strategic alliance”.