Law Horror Stories

Small Business Horror Story #7: Pre-Packaged Operating Agreements

Small Business Horror Story #7: Pre-Packaged Operating Agreements

Here’s what happens when you get your operating agreement from a legal forms company. I just finished helping a client negotiate a buyout.  In English, that means he and his partner stopped longer seeing eye to eye on how to run the business so the partner offered to buy my client’s shares in the company. […]

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Small Business Horror Story #6: Not Properly Closing Your Business

Small Business Horror Story #6: Not Properly Closing Your Business

Today I received a call from a potential client who was called before the Nevada Department of Taxation about $60,000 in taxes, penalties, and interest he owes from a business he stopped operating in 2009.  Apparently he simply closed the doors of the business and changed his address.  Three years later he’s on the hook […]

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Small Business Horror Story #5: Trademark Denied

Small Business Horror Story #5: Trademark Denied

The first step in starting a business is to choose a name.  In my article on How to Start a Business in Las Vegas, I say, simply, “make sure no one else has it.”  Maybe I need to elaborate. In addition to ensuring no one else has the entity name by checking with the Secretary […]

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Small Business Horror Story #2: No Operating Agreement and the “Eraser”

Small Business Horror Story #2: No Operating Agreement and the “Eraser”

I recently met with one member of a two-member LLC with no operating agreement.  We’ll call my client Jane and her partner Joe.  Jane was concerned because Joe was engaging in activities that could jeopardize reimbursements the company receives from the government for the services it provides.  Jane voiced these concerns and Joe promptly “erased” […]

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Small Business Horror Story #1: Shady Partner + Generic Operating Agreement = Disaster

Small Business Horror Story #1: Shady Partner + Generic Operating Agreement = Disaster

  Whenever I sign a new monthly retainer client, I conduct what I call a “legal checkup” on the business.  I review the company’s formation documents, licensing, employee or contractor agreements, lease agreements, service agreements, customer contracts, etc. to find improvements I can make to better protect the company and its owners.  Wait, let me clarify. […]

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