Succession Planning - The Most Important Business Plan a Small Business Owner Can Make
As a small business owner, you put your heart and soul into building your company. But what happens when it’s time to move on? Whether you are retiring, selling, or passing the business on to your children, you need a plan. That’s where succession and estate planning meet.
Understanding Shareholder Agreements: An Introductory Guide for Business Owners
When an entrepreneur establishes a company, they often focus on the excitement of their new venture and the growth potential. That said, it is equally important to consider the legal aspects that govern shareholder relationships and responsibilities. A shareholder agreement is a crucial document that outlines the rights, obligations, and protections of all parties involved in a corporation. This blog post will provide an introductory overview of shareholder agreements, their key elements, and why they are essential for business success.
5 Years and Counting – 5 Lessons Learned From Running a Business
Before diving into any lessons learned from running a business—a law firm—for the last five years, I would like to thank everyone who has supported me. I especially want to thank everyone who said I was crazy or weird or told me I could not do something.
Hold Up! How Holding Companies Benefit Small to Midsize Business Owners
That Warren Buffett fellow is really onto something, and that’s not even considering his inclusion on the Forbes 400. So, what exactly is he onto? Glad you asked! His company, Berkshire Hathaway Inc., is the gold standard of a holding company (holdco). Hold up, what was that term? A holdco, sometimes known as a parent company, is an entity that owns investments in the form of stocks, bonds, other companies (operating companies/opco), or anything of value. With the definitions out of the way, we can move on to how a holdco can help SMB owners.
Be Like Bob - Succession Planning
Bob is back with a new lesson to help your business. Many small business owners want to retire. Most don't have a plan on how to make that happen. Steven Covey's second habit is, "begin with the end in mind." As a small business owner, determining your exit (end) will guide your corporate structure and business operations. It will also determine the appropriate level of succession planning for your situation. So, whether your business ends when you walk away, you build an empire and sell, or you build a brand with superb systems that can last for decades after you leave, one thing is certain having a succession plan is important.
Be Like Bob - Going Public
This is a simplification of the process of going public, it is an example of the best-known investor exit. Investor exits are a major consideration for business owners, as are returns, growth, and how each of these fits into the investor’s time horizon.
Howdy, Partner!
A lot of small business information available today focuses on LLCs. And while we are big fans of LLCs, there is a more direct and simple solution to get a business going. That solution is a partnership.
Be Like Bob - LLC to C. Corp. Conversion
LLCs are great for their ease of management and minimal corporate formalities. But, as a business scales, it could attract investors. Those investors are otherwise known as venture capital funds (VC). VCs prefer to invest in C Corporations. There are many reasons like tax considerations and exit strategies. For some business owners accepting fund investment was not on their radar when forming their business. Remember, one of the main considerations of forming a corporate entity is personal asset protection.
Be Like Bob - LLC
Bob is back and his assets have grown. Now is the time to think about organizing his business to protect his assets. The simplest method to do that is through a Limited Liability Company (LLC). Yes, Bob will get certain tax benefits, but that is not the most valuable attribute an LLC provides. The most valuable attribute of an LLC is asset protection for its members. The fact that it is not as formal as a corporation is a major bonus too.
Be Like Bob
We are often asked about which business entity is best? We almost always answer with, it depends. So, meet Bob, who will help us better explain when certain business entities might be right for you. Every other week we will follow Bob from sole proprietor to public company. Each time your goal is to #belikebob.
The 85% Rule, Flow State, and Business Growth
Governance - Gosh Darn It!
At The Skeen Firm, we take the grind out of governance, allowing you to focus on making money. Don’t let governance issues hamstring your business or be your Achilles’ heel, leaving you to say gosh darn it.
I’ll Take Corporate Transparency Act and Beneficial Ownership Disclosure for $500
The Corporate Transparency Act (“CTA”) is part of the Anti-Money Laundering Act of 2020, which Congress added to the National Defense Authorization Act for Fiscal Year 2021 (“NDAA”). The CTA requires Beneficial Ownership Disclosure (“BOD”) of all reporting companies. To keep it simple a reporting company is any corporation, LLC, or other similar entity formed with any state or foreign government. A beneficial owner of this kind of company is any person or entity with over 25% ownership.
Small Business Formation Basics - Tax Considerations
Most small business owners wonder what they can do to decrease their taxes. The best answer for all small business owners is simple: Focus on growing revenue and you will find taxes will not matter. Following this philosophy is all the more important for start-ups. In the first five years of business, growth can fix most issues. Growth, not decreased taxes, is the lifeblood of your business.
The PPP Compliance Puzzle
Few things are certain in these unprecedent times. One thing is. Forgiveness under the Paycheck Protection Program (PPP) is likely subject to heightened scrutiny. What are some steps small businesses can take now to ensure proper PPP compliance?
LLC filings are easy and cheap—true protection is priceless.
You filed Articles of Organization for your own LLC, saving yourself a lot of money. Great! Now you can run the business of your dreams without the fear of impact to your personal assets. Well, not completely.
PPP Guidance Changes
The CARES Act and Doing Our Part
The breakdown below is provided by the U.S. Chamber of Commerce. If you have questions regarding the eligibility of your small business or just general questions regarding your small business give us a call at 724-550-6970. We are all in this together and must do our part to help each other succeed.
Know Your Exit
Modern business conversations focus heavily on Start-Ups, thanks in large part to the success and rapid growth of many young companies. For each new successful IPO that comes to market there are a multitude of ventures that simply fall short. Often the main reason for this failure is a lack of exit strategy. All new businesses start with a big hairy audacious goal (BHAG), then funnel that into a vision, then a mission, and ultimately a business strategy against which they will execute. Few, however, contemplate how to exit and truly generate ROI for investors.
Your General Counsel - Start-Up
Start-ups and new cycle businesses face unique legal issues as they grow. Our Your General Counsel - Start-up services provide expedient answers/solutions to help new business owners focus on what they do best, grow their business. Our role is that of a strategic business partner, instead of a mere project attorney, shifting the focus for our business objectives to yours. For those businesses not ready for ongoing services ask about our flat fee pricing, so you know your upfront costs.