Source: https://iowabusinesslaw.com/category/business-law/
Timestamp: 2016-10-26 21:02:35
Document Index: 518494850

Matched Legal Cases: ['§547', '§547', '§547', '§547', '§489', '§489', '§489']

Business Law | Your Lawyer
Business Law	Key Business Documents	October 10, 2016 / samkreamer	/ Leave a comment
Although each business has its own needs for specific documents, this article is designed to call to your attention certain business documents and types of documents which are of importance to businesses in general.
Separate checking account for the business
This helps when it comes to tax time
This helps in recognition of an entity
This helps in management of the business
Corporation, and partnerships MUST get its own Federal ID number[1]
The business is a “taxpayer”
The business often has to file its own tax return
Although a sole proprietorship and/or a single owner LLC[2] without employees does not require a FED ID number[3], this helps establish the business name on the IRS records.
Contract for goods and/or services
No one has been the cause of more lawsuits than “Miss” communication
This can be in the “form” of a contract or simply a purchase agreement
What is to be provided by each party
What is to be provided in return for payment
When it is to be provided
Confidentiality/Non-Compete. If the business (regardless of the structure) has employees, the employees should be bound by a confidentiality/non-compete agreement
Provided the terms are “reasonable” these are enforceable
Courts balance the needs of the needs/rights of the employer against the needs/rights
Sole Proprietorship- Trade Name- Iowa Code 547
Anyone operating a business in a name other than the true surname of the owner must file a verified statement “…in the county in which the business is to be conducted”[4]
Failure to file the statement is a simple misdemeanor[5]
Each day that any person or persons [fails to file the statement] is a spate and distinct offense.[6]
This does not apply to an entity which is formed by a filing with the Secretary of State (corporation, limited liability company, limited partnership)[7]
ALL Multi-owner businesses- Buy/Sell Agreement
Business impasse
Can be a formula or by agreement
Price can depend on the triggering event
Can be in a lump sum or over time
If death is the triggering event; insurance proceeds can fund payment of the payment.
Multi-owner LLCs-Operating Agreement[8]
Without an operating agreement[9]:
Every member has an equal vote in the management of the company/management disagreements are resolved by simple majority vote
EACH member the right to enter into contracts which bind the entity
UNANIMOUS consent is necessary for sale or merger of the company
With an Operating Agreement
Management can be limited to certain individuals who do not have to be members of the company[10]
Managers (as distinguished from members) have the right to enter into contracts which can bind the company.[11]
Multi-owner Corporations- Minutes
Shareholder minutes memorialize who are the directors of the company
Directors minutes memorialize who are the directors of the company
Minutes can be used to restrict authorization of individuals to act on behalf of the company in certain matters
Minutes can be used to memorialize action by consent rather than as the result of a meeting
Minutes should be prepared annually and should contain:
Authorizations (or ratification) of actions
Any “material” or significant transaction should be included in minutes with accompanying authorizations Example: X as president of the company entering into a lease or a loan agreement on behalf of the company.
Any “material” or significant personnel changes
Any transaction outside of the “normal’ course of business Example: the sale of substantially all of the assets or a merger
Any purchases, sales, or issuance of stock
Contact the Kreamer Law Firm, P.C. at 515-727-0900 or at info@kreamerlaw.com if your business has not yet addressed its need for the Key Business Documents described in this article. [1] “Do you need an EIN” on the IRS Small Business and self Employed Website Update 6/14/2016
[2] If an LLC is owned by husband and wife in a non-community property state, the LLC should get a Federal ID number and file as a partnership. “Single member Limited Liability Companies” on the IRS Small Business and self Employed Website Update 6/15/2016
[3] Neither a sole proprietor nor the member in a single member LLC are considered “employees” “Single member Limited Liability Companies” on the IRS Small Business and self Employed Website Update 6/15/2016
[4] Iowa Code §547.1. It can be difficult to determine where the business is to be conducted.
[5] Iowa Code §547.4
[6] Iowa Code §547.5
[7] Iowa Code §547.1
[8] There is no statutory requirement that a limited liability company adopt an operating agreement. In the absence of an operating agreement provision on any matter, the Iowa statute prevails. Iowa Code §489.110(2)
[9] Iowa Code §489.407(2)
[10] Iowa Code §489.407(3)
What are the Steps in Selling a Business?	September 21, 2016 / samkreamer	/ Leave a comment
Don’t Screw Up Your Start Up!	February 3, 2015February 3, 2015 / samkreamer	/ Leave a comment
Business Decisions-Who has the power?	January 12, 2015January 15, 2015 / samkreamer	/ Leave a comment
Again, I go on air to discuss with Michael Libbie the final part of our Three-Part Interview on “What Happens to Your Business If Anything Happens to You?” This time we’re discussing who will have the power to make the decisions for your business if you can’t.
Click the link below to watch the podcast, and if you need legal help with any business questions or concerns, please feel free to email us at info@kreamerlaw.com or call us at (515)727-0900.
http://insightadvertising.typepad.com/insight_on_business/2015/01/business-decisions-who-has-the-power.html
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