Business partnerships evolve, and there may come a point when one partner needs to exit. A buyout allows the remaining partner to take complete control while ensuring fair compensation for the departing party. Whether driven by financial disagreements, retirement, or strategic restructuring, an adequately executed buyout prevents legal disputes and protects business continuity. At DPA… Read more »
Internally, redlining a B2B contract is a team effort generally involving input from the company’s business advocate, internal subject matter experts (privacy, security, risk), drafting counsel, and the ultimate decision maker – possibly the chief legal officer or another C-suite officer. And while a counter-party’s approach to its redline may be inefficient or frustrating, there… Read more »
An LLC can elect to be taxed as an S corporation, and for some LLCs this choice can result in significant tax savings. For others, doing may introduce unnecessary complexity without substantial benefits. This article discusses when to do so may make sense. LLC Tax Classifications A Limited Liability Company (LLC) has flexibility in choosing… Read more »
Divisions under IRC Section 708(b)(2)(B) of multi-member LLCs taxed as partnerships can offer unique advantages and flexibility in certain circumstances. Although initially written for traditional partnerships, IRC Section 708(b)(2)(B) applies to multi-member LLCs that elect to be treated as partnerships for tax purposes. So, the guidance on partnership divisions applies equally to such LLCs. Under… Read more »
An asset sale is a common method for transferring business ownership. It involves the business entity selling its assets to a new entity organized by the buyer rather than the business owner selling his or her ownership of business entity (its stock if organized as a corporation or its membership interests if organized as a… Read more »
SAFEs, or Simple Agreements for Future Equity, are investment instruments sold by startups in early-stage fund raising. While related to equity, they are not considered traditional equity instruments at the time of their sale or issuance. Instead, a SAFE is a contract that gives the investor the right to convert the amount invested (the “Purchase… Read more »
Use the form below or call us at (408) 300-5770 to get in touch with our San Jose Business attorneys.
"*" indicates required fields
