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FAQ 2015-02-20T20:12:45+00:00

Is an LLC better than a corporation?

SGlawgroup

Each structure provides its own benefits. How one is ultimately better than another is dependent on your individual needs and requirements. An attorney can best determine which structure is right for your business.

An LLC is a corporation, right?

SGlawgroup

No. An LLC is actually a partnership with corporate characteristics.

Can you be an LLC with just one owner?

SGlawgroup

Yes, however, some of the protections may be limited in comparison to a multi-member LLC.  Additionally, single member LLC’s (LLC owned by just one owner) are disregarded entities for tax purposes and file as a sole proprietorship.

Can managers be members as well?

SGLawgroup

Yes. Managers can be members, which usually makes the LLC a member-managed company

Do members have access to the bank accounts of the LLC?

SGlawgroup

Only members who are also managers can have access to the bank accounts.  Also, managers who are not members will have access to the bank accounts.

What does transferability of ownership mean and should it affect my choice of entity?

SGlawgroup

Transferability of ownership means the ability to exchange ownership interest in a business.  Generally, corporations provide for greater transferability of ownership instead of LLC’s.  Therefore, if transferability of ownership is important then a corporation may be a better option

Do we need contracts for every deal?

SGlawgroup

Generally speaking, whenever a business relationship is entered (large or small) it should be in writing and agreed/signed by all parties involved.

What should be in a contract?

SGlawgroup

A contract should contain the essential terms such as what is to be performed by both parties with as much specificity as possible along with a time frame if necessary. If a sale of goods is involved, then the quantity of goods should be included.

Should employees have contracts in an “at will” state?

SGlawgroup

A contract should contain the essential terms such as what is to be performed by both parties with as much specificity as possible along with a time frame if necessary. If a sale of goods is involved, then the quantity of goods should be included.

What should be in a contract?

SGlawgroup

Absolutely. Generally, while the “at will” state allows an employer to terminate an employee for no cause, an employee can still raid the company of its confidential information, client lists, and any other piece of information made privy to the employee by way of his/her employment absent an agreement.

What happens if another party does not follow a contract?

SGlawgroup

Generally, if another party does not adhere to their part in the contract the party is in breach. At this point, the non-breaching party has some options and should speak to an attorney to learn of his/her rights.

Can a contract be rescinded?

SGlawgroup

Under certain circumstances, a contract may be rescinded. Should you wish to know if your circumstance justifies a rescission, speak with one of our attorneys.

Can a contract be rescinded?

SGlawgroup

Under certain circumstances, a contract may be rescinded. Should you wish to know if your circumstance justifies a rescission, speak with one of our attorneys.

Can I write a contract without an attorney if have been dealing in transactions before?

SGlawgroup

Attorneys provide a great deal of knowledge and expertise in terms of drafting contracts. While you may have some knowledge of the transactions, attorneys have the ability to handle any issues that may arise. Ask yourself, is it worth losing more than just some business?

When should an attorney be involved in buying or selling property?

SGlawgroup

Generally, an attorney should be involved after a buyer and a seller has been located.

Does a quit claim deed protect me from title issues?

SGlawgroup

Generally, a quit claim deed only provides ownership from the grantor of the prior deed. A quit claim deed provides the property and title “as is.” Therefore, if the property has any encumbrances these are the responsibilities of the buyer

Should I have a written lease contract even for month to month leases?

SGlawgroup

Generally, a written lease contract is necessary, regardless of the time frame, to protect you from other issues, such as problems with the condition of the property or failure to return the security deposit, and remedies for any issues that may arise.

How long can my landlord hold my security deposit after the end of the lease?

SGlawgroup

Normally, they can hold your security deposit between 15-30 days following the termination of the lease depending on whether the landlord wished to place a claim on the deposit.