Where should I form my entity?
Insights Michael Moradzadeh · August 19, 2009
This can be a very complex question. If you are looking to grow the company and get outside investment, then you should probably form an entity in Delaware. If your entity will have real estate holdings Nevada might also be a good option. Otherwise, it might make the most sense to simply form the entity…
Does the Future Belong to Virtual Law Firms?
News August 3, 2009
Rimon Law Group was featured on August 3, 2009 in the American Lawyer in an article by legal reporter Francesca Heintz. The story describes the continued growth of alternative-model law firms, in the midst of a struggling legal industry. The article can be viewed on the the American Lawyer’s website.
Employment Service Agreements
Insights August 2, 2009
A new company should determine which of its workers are employees and which are independent contractors. The workers’ status will determine what benefits s/he is owed during employment and at its conclusion. A new company is building its reputation not just for its product, but for its staff and for fairness as an employer as…
Insights Michael Moradzadeh · August 1, 2009
Can a part-time employee hold another job while working for you? Can he or she work for a direct competitor a year after he involuntarily leaves his employment? Does this change if he owns part of your business? What if the competitor is anywhere in the world instead of in the samecounty? Different states have…
What is pass-through/flow-through taxation?
Insights Michael Moradzadeh · July 18, 2009
In a pass-through (or flow-through) entity, the entity’s income and expenses “pass through” the entity and are treated as the income and expenses of its owners. LLCs and S-Corporations are pass-through entities. This differs from a C-Corpoartion (which is the default form of corporation) which is taxed a corporate income tax at the end of…
Should my business be a Corporation or an LLC?
Insights Michael Moradzadeh · July 17, 2009
If your business only has a few investors and you do not anticipate receiving outside financing in the near future, an LLC is probably best for you because of its flexibility, simplicity, and pass-through taxation (see blog entry on pass-through taxation). However, if you want a board of directors that is distinct from the officers and/or…
What is the difference between an LLC and a Corporation?
Insights Michael Moradzadeh · July 16, 2009
A corporation is made up of three groups of people – the shareholders, the board of directors and the officers, although the same person can hold multiple positions. The board of directors is formally elected by the shareholders and represents their interests. It is the board of directors that hires the officers of the company,…
Why form a limited liability entity (Corporation or LLC)?
Insights Michael Moradzadeh · July 15, 2009
A limited liability entity (a corporation or an LLC) provides both financial and liability benefits. The financial benefits include the ability to deduct more business expenses from annual revenue when calculating taxable income than would be possible without an entity. Forming a limited liability entity also helps protect your personal assets in the event of…
Counsel to Counsel: Thinking Creatively About the Practice of Law
News May 9, 2009
Why would any law firm client be willing to pay more than the agreed upon billing rate? Why would any law firm agree up front to discount its rates for clients who are unhappy with the service they received? Well at least one law firm is banking on being on the winning side of this…
Giant Coke Adopts Pay-For-Performance
News April 25, 2009
Among large corporations, the compensation model for vendors is changing from hourly or even flat fees to pay-for-performance. That is going to change lots faster now that giant Coke has adopted the value model. In AD AGE, the bible of the marketing industry, Jeremy Mullman and Natalie Zmuda report: “Coca-Cola Co. is trying to start an…