Category: Business Law

Which Type of Business Entity is Best for me? Part Two

In the first entry of this two part blog series, we discussed four questions to ask yourself when deciding what business entity to choose. In part two, we go into detail about LLCs, Corporations, and tax considerations for each. Limited Liability Company (LLC) or Corporation The main reason to form an LLC or corporation is …

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Keeping the Family Camp in the Family

With summer imminent, many Mainers and those “from away” will be heading to their camps or vacation properties for relaxation and recreation.  Frequently, these camps are legacy properties that have been used by families for generations providing an important family tradition and shared memories.   As time passes, the number of family members who wish to …

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Which Type of Business Entity is Best for me? Part One

In this two-part series, we’ll discuss the differences in the following business entities: Sole Proprietorship, Partnership, and Limited Liability Company. Congratulations! You want to start a business. You’ve perfected a million dollar idea and are excited to hit the ground running. You’ve fine tuned your process, know who your target market is, and maybe even …

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New IRS Rules Regarding Partnership Audits (including LLCs), Part I

This blog will be part one of three regarding the new IRS BBA Rules regarding partnership audits that went into effect on January 1, 2018. Background: For over 35 years the IRS has wrestled with effectively auditing partnerships and their partners (including LLCs and their members, once LLCs began being widely used in the 1990s). …

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Ensuring Compliance with Harassment Training Obligations

The national attention given recently to sexual harassment serves as a good reminder to Maine employers of their obligations to employees in this context. In addition, the first of a new year is always a good time to renew a commitment to a harassment free workplace and ensure compliance with training requirements. In terms of …

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Best Practices in International Business Contracting – Part 2

            In a prior blog post, I began discussing best practices when contracting with another business that is outside of the United States. The most successful businesses forecast their potential business risks, discuss them early with their counterparts, include related provisions in their contracts addressing those risks, and then monitor the relationship on an ongoing …

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Best Practices in International Business Contracting – Part 1

            All contracts are subject to certain laws. The beauty of contracting is generally being able to choose which laws become part of the contract. An international business contract, for instance, it should generally read like a sophisticated business contract that will be performed by two domestic, English speaking parties. However, depending on the home …

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Is Debt or Equity Financing Better for My Business?

Recently a client sent me a financing contract from a “hard money” lender. This lender was willing to lend my client $150,000 at an interest rate of over 20%. Upon the lender’s granting the loan, the loan principal would jump from $150,000 to $225,000. These loan terms were considered within the “normal” range for this …

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