One of the questions I wish clients would ask more is whether their division of ownership is a fair one. Most owners, in their fairness calculation, apply the following formula: 100% ÷ number of founders This advanced calculus may appear fair and equitable, but the reality is that it ignores many dimensions of the co-founder […]
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CARES Act Payroll Tax Credit: The less-talked-about relief for shuttered businesses
We’ve heard a lot of talk, speculation and venting about the two big programs in the CARES Act, the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”). We’ve written about those programs elsewhere. But there’s one big benefit hidden in here that only applies to businesses that have been closed by government […]
Continue ReadingPaycheck Protection Program Information
This is a living document that I will update from time to time as I receive more information from the government, lenders, and the experiences of borrowers. In a nutshell, here are the broad strokes of the program: It’s a loan that can be forgiven to the extent of your payroll, rent, utilities, and mortgage […]
Continue ReadingWhat’s in the CARES Act for small businesses?
The U.S. Congress has just passed the largest stimulus (nay, “recovery”) bill of all time to help the country weather the COVID-19 crisis — the “Coronavirus Aid, Relief, and Economic Security Act” or the ‘‘CARES Act’’. There’s a lot in here from straight up pork to direct payments to individuals. I’ve been following this process […]
Continue ReadingDeadlock Provisions in Buy-Sell Agreements
A standard Buy-Sell Agreement might provide for an appraisal prior to a buyout. These agreements don’t anticipate there being a conflict after the appraisal — what happens if the appraisal comes in lower than the departing member expects, or higher than the remaining member expects? What about situations where appraisal of the company’s value is […]
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