A corporate business owner with partners is knowledgeable about what it takes to keep the company running smoothly, but is often unaware of the statutory requirements for a board of directors. Someone with the title of president or chief operating officer may disregard the fact that the business is ultimately run by a board of  Continue Reading »

Fall is just beginning, but it’s not too early to think about year-end tax planning. As the end of the year approaches, it’s time to identify moves small business owners can make before December 31st. The first thing to do is to make a projection of this year’s income, expected tax deductions, and tax credits.  Continue Reading »

If your Maine-based business is family owner, sooner or later, it will be time to hand over the reins to the younger generation. In order to improve the odds for continued success of your family business, you need to develop a plan of succession. If you already have family members working for you, it may  Continue Reading »

All small business owners should realize the importance of contracts, since they are part of everyday business, whether it’s the tiny print at the bottom of a bill or an agreement to buy office equipment. Depending on how complex the deal is, contracts with customers may be letter agreements or much larger documents. The key  Continue Reading »

Huff Fund Investment Partnership v. CKx, Inc., 2013 Del. Ch. LEXIS 262 (Oct. 31, 2013) It’s no secret that the Delaware Court of Chancery has a strong liking for the discounted cash flow (DCF) analysis in fair value determinations. For this reason, a decision in which the court expressly rejected the DCF method in favor  Continue Reading »

When a small company if forced to shut down, it usually isn’t because they haven’t made profits. Most small businesses face closure because they lack quality cash flow, not because they lack profits or assets. So what should a business owner do? They will face many different situations and be prepared for all of them.  Continue Reading »

If you’re self-employed as a sole proprietor, partner, or LLC member, you may owe the self-employment tax. This tax serves the purpose of collecting Social Security and Medicare taxes from your net self-employment income. The tax that is owed is in addition to any Federal and State income taxes. Here are the important details about  Continue Reading »

When it comes to methodology, stick to the tried and true. This is the takeaway from a recent intellectual property case involving a patent related to a dual-flush valve mechanism in toilets. An experienced appraiser tinkered with the royalty base and royalty rate formulas—and saw his damages calculation go down the drain. Per-unit royalty The  Continue Reading »

When starting a new Maine-based small business, there are a variety of entity choices. Some will be easily ruled out based on the business’ operation. The six basic entities are: 1. A sole proprietorship This is a business owned by one person, who may be the only employee. A sole proprietorship is not a separate legal  Continue Reading »

Hanusin v. Hanusin, 2013 Ill. App. Unpub. LEXIS 2618 (Nov. 20, 2013) What’s more relevant and reliable in terms of valuing an interest in a closely held corporation: a 2004 stock purchase agreement or a 2012 settlement four owners of the company made with a fifth partner to conclude litigation? This was a central question  Continue Reading »