PLG Law Blog

On January 1, 2024, the Corporate Transparency Act became effective and requires that companies falling under the definition of a “reporting company” file information about their “beneficial owners” with the Financial Crimes Enforcement Network (“FinCEN”).

Did you know that if your company: 1. Agrees to license its trademark or other symbol to another business. 2. Agrees to provide significant assistance in the operation of the other business. 3. Requires that the other business make a minimum payment of at least $500 during the first six months of operations. Then you have created a franchise relationship? There are both federal and state disclosure requirements applicable to selling franchises...

Did you know that when you sell stock or membership interests in your company, you have created and sold a security? Did you know that when you borrow money from friends in exchange for a promissory note from your company you have created and sold a security? Did you know that before a security can be sold it must be registered with the Securities and Exchange Commission? Failure to properly register a security can lead to crippling....

Did you know that Directors on the board of directors of a company owe a fiduciary duty to the shareholders or members of the Company? A Company cannot indemnify a Director and insurance purchased to protect a Director will not cover certain types of breaches of a Director’s fiduciary duty. Sound corporate governance is important not only for the health of the company but the protection of the Directors. For help with the corporate governance of...

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