Clients, particularly those on the younger side, often balk at the document execution requirements imposed when it comes time to sign their wills. They have become comfortable signing real estate documents via online signature.
On the surface it seems simple. The definition of “fair market value” is the price at which a willing buyer will buy and a willing seller will sell, in an open market, where the parties are at arms-length and not related to each other.
“Entrepreneurship” is frequently defined as “starting” or “developing” a business venture or idea. While many entrepreneurs do start a business from “scratch,” others purchase a going concern or selectively buy assets that can enhance their own opportunities to grow.
Despite their sophistication, entrepreneurs and businesspeople sometimes build and invest in companies without the legal scaffolding necessary to withstand disagreements among the owners. Individuals provide money without having a clear agreement on whether the payments are a loan or were made in exchange for an equity interest.
We spend a good deal of time advising clients on how to stay out of court. Some clients, however, find this approach too conservative, stodgy or dull and would prefer to be involved in otherwise avoidable litigation.
Purchasing or selling a business can be accomplished in a number of ways. While the objective of the transaction is always the same – transfer of ownership from a seller to a buyer – the form of the transaction does make a difference. When it comes to the purchase or sale of a business, the form of the sale has significant implications, not only at the time of sale but with regard to operations going forward.
Negotiating a purchase price for a business is more complicated than haggling for a new car. Most business sales have at least some portion of the price paid after closing.
The U.S. Supreme Court recently heard oral arguments in a case, ‘North Carolina Department of Revenue v. Kaestner 1992 Family Trust,’ in which a trust challenged a North Carolina law that taxes resident-beneficiaries on the income earned and retained by a nonresident trust.