Thursday, March 16, 2017
Starting a business is usually very exciting. But choosing the right type of structure for your business can be confusing. There are a lot of legal structures you can choose from, and all have their advantages and disadvantages.
The decision that you make could have a big impact on the type of paperwork you fill out, the type of liability you might face, and the amount of money you pay in taxes. If can also affect how future business partners and investors might deal with you.
Read more . . .
Friday, March 3, 2017
What are some mistakes I should avoid when starting a franchise?
Franchise businesses offer entrepreneurs the opportunity to open their own business using a proven business concept and model. While purchasing into an existing franchise or even starting your own franchise can lead to much business success, there are important factors you should consider. All small businesses come with some risk, but these risks can be mitigated with the assistance of a Nevada business planning attorney.Read more . . .
Thursday, June 30, 2016
Are shell companies being used in Nevada to hide criminal activities?
In April of this year one of the largest data leaks in history occurred. Documents and information, nicknamed the Panama Papers, belonging to a Panamanian based law firm, Mossack Fonesca, were released to the public. This data basically detailed how the rich, famous and royal are using shell or inactive companies for the corrupt purposes of hiding money and evading taxes.Read more . . .
Saturday, May 28, 2016
Many people change their legal residence to Nevada to take advantage of its favorable tax treatment. Their former home states do not allow these moves to go unchallenged and may attempt to recover further tax payments. But taxpayers can fight back. In the case of inventor Gilbert P. Hyatt, who took a stand against the California Franchise Tax Board, the result has been a legal war that has lasted for over two decades.Read more . . .
Monday, May 16, 2016
How will I know if I'm choosing the right attorney to help me purchase a small business?
Which lawyer you choose when purchasing a business is important since the experience, knowledge and negotiation skills of your attorney can have a major effect on whether your purchase is successful or not. Unfortunately, the average person chooses a lawyer too quickly, without sufficient investigation into the reputation of the individual attorney or the law firm he or she works for.
Necessary Steps To Assess Your Lawyer's Qualifications
In order to ensure that you are hiring a skilled and reputable attorney, you should:
Interview the Lawyer -- During the original meeting, remember that you are "shopping" for the best fit, legally and personally. Make sure the attorney you're interviewing is experienced with small business sales and acquisitions. An excellent personal injury or criminal attorney who dabbles in business purchases would not be a good choice.
Read more . . .
Thursday, January 21, 2016
Why is Nevada attracting high-tech businesses?
Nevada is emerging as a hub for energy technology, especially since electric car manufacturer Tesla started building a so-called "Gigafactory" to manufacture batteries for its fleet of electric automobiles. The plant started rising on the horizon outside of Reno about 2 years ago, and since then a number of other high-tech companies have established a presence in the state or have announced plans to do so.
Nevada has long been known as a Mecca for gambling, but the state offers many advantages to companies looking to do business here. In Nevada, there is a comparatively lower cost of doing business coupled with tax incentives. For high-tech companies there are also ample clean energy sources, and this explains why Nevada is attracting businesses involved in the development of energy technology.
In fact, some contend that attracting energy storage manufacturers, clean energy producers and entities on the forefront of green transportation will make the state as important as Silicon Valley is to internet and software start-ups. In addition to attracting energy tech companies, Nevada also offers advantages to businesses involved with clean energy projects including solar, wind, and geothermal farms.
Why are Eco-Businesses Coming the Nevada
One reason Nevada is attracting these businesses is that the state has one of the lowest costs of doing business in the West. Nevada has a relatively easy tax system with no corporate income tax or minimal employer payroll tax. Moreover, land is relatively cheap and there are few regulatory hurdles involved in building a new manufacturing plant. Another attractive feature of the state is its proximity to the Bay Area and Silicon Valley, a short drive that allows business owners to travel here quickly from their headquarters around San Francisco.
Most importantly, state and local governments believe they should get out of the way of business in order to allow the state to evolve its economy beyond gambling and tourism. The state economic development agency has offered high-tech companies many incentives like large tax breaks, free land, and other benefits. Finally, Nevada is rich in minerals, such as lithium, that are critical to some clean-tech companies. In the end, this eco-development will benefit Nevada’s smaller cities like Reno that have been economically depressed and dependent on gambling and tourism.
If you have any questions regarding your Business a qualified Business Planning attorney could help you!
Saturday, November 21, 2015
I have worked hard to establish my own business. How can I pass it on to my loved ones?Succession planning
for a family business can be a tricky proposition. What happens if the next generation just isn’t that interested in running the business? What if there is a difficult relationship among the family members who will all be involved in the business? How can something be passed on to members of the family who do want to be a part of the business while circumventing the family members who are reluctant to participate? How can the business owner manage these problems?
Perhaps one of the more obvious ways business owners can deal with these problems is that they can pick and choose for themselves and dictate the plan for the future. But isn’t there a better way? Suppose the next generation is actively consulted and individual preferences are taken into account when it came to passing things on? This approach might put the success of future family relationships and business relationships on equal footing.
In such a situation, the business owner might find that the next generation shares his or her vision for the future of the company. Even if this is not the case, it doesn’t mean that all is lost. Certain members of the next generation may have important things to add to the discussion even if they have differing views. In such instances, it can benefit all parties if the business is split into different units, or if certain members of the next generation are bought out by other members. Such a result may be the “Plan B” for current ownership, but may be best for the future of the company. It also may be best for the future of the family, because business relationships can run the risk of tearing families apart. In the interest of maintaining a successful business enterprise and keeping the family peace, instead of dictating the future to the next generation, it may be advantageous to let the next generation be a part of the planning process.An experienced business planning attorney
can help you and your business navigate the passing of your business successfully to the next generation.
Saturday, November 7, 2015
What do I need to know about the new Nevada commerce tax laws?
The state of Nevada has been a proud supporter of out-of-state businesses for years – imposing the attractive corporate income tax rate of zero percent. Aside from Delaware, Nevada’s low incorporation fees and friendly tax laws make it one of the most popular incorporation states in the U.S.
However, on July 1, 2015, these perks were tweaked by the legislature’s new commerce taxes, which apply to those with Nevada-source income. The following are some of the highlights of the tax bill:
- Businesses reporting a gross, in-state revenue in excess of $4 million will be subject to a commerce tax. The rate will vary depending on the industry, and will range from 0.051 percent to 0.331 percent.
- Regardless of income, all businesses incorporated in Nevada must file an annual Commerce Tax Return.
- Commerce taxes are due within 45 days of the taxable year.
- In-state license fees for corporations have increased from $200. to $500. However, license fees for pass-through entities remains fixed at $200.
While Nevada is still a highly attractive state in which to incorporate, it is important to be mindful of these recent tax law changes – as hefty penalties await any business that does not adhere to the new changes. According to the Department of Taxation, entities required to file a Commerce Tax Return include corporations, S corporations, partnerships, proprietorships, limited liability companies, business associations, joint ventures, limited-liability partnerships, business trusts, professional associations, joint stock companies, holding companies and any other person engaged in a business.
Moreover, there are special exemptions, deductions, and classifications under the law – particularly pertaining to the gaming and entertainment industries. To ensure compliance, contact an attorney today.
Friday, October 9, 2015
As a small business owner, how should I interpret the current minimum wage mandates in Nevada?
For Nevada business owners, understanding the current minimum wage directives is vital to lawful business ownership and proper compliance with employment laws. Accordingly, it is imperative to keep abreast of ongoing changes in the wage laws within the state, including the recently enacted two-tier system designed to ensure that workers in all industries are offered a fair and predictable hourly rate.
Under current laws, there are two separate minimum wage requirements, depending upon whether an employer offers workers the option of purchasing health insurance through the company. If an employer offers health insurance, minimum wage for that employee is $7.25 per hour – an amount congruent with the federal standard. If the employer does not offer health insurance, the minimum wage is increased to $8.25.
In August, 2015, a Carson City judge added two pivotal caveats to these rules. First, the judge concluded that an employer cannot count tips when asserting compliance with the minimum wage measure. In other words, an employer cannot refuse to offer health insurance, then claim to be offering his workers $8.25 per hour by including tips in the hourly rate calculation.
Second, the judge concluded that it is insufficient for an employer merely to offer health insurance; the employee must actually accept the policy before the $7.25 wage is considered lawful. Proponents of this measure point to the fact that many employers offer sub-par policies or policies with extremely high premiums that are unaffordable for the average worker. Before this recent interpretation, employers were able to offer the lowest minimum wage to employees who were simply offered a health policy, regardless of whether they could afford to take advantage of it.
The Nevada Labor Commissioner is planning to ask for a stay of these rulings to allow for the Supreme Court to weigh in.
If you have questions about compliance with state or federal wage laws, please do not hesitate to contact the Stone Law Office at 877.800.3424.
Saturday, September 26, 2015
Does a Nevada board of directors face certain liability for engaging in (otherwise lawful) corporate acts not expressly permitted by the bylaws or articles of incorporation?
Businesses incorporated in Nevada are subject to a number of laws and regulations, as well as the limitations and procedures set forth in their own corporate bylaws and articles of incorporation. When a board of directors opts to act (or not act) under a certain set of circumstances, it must make certain its actions are congruent with both Nevada law and its governing documents – or it could face shareholder liability.
In some circumstances, however, a board of directors needs to act or react in a way that is not necessarily mentioned or supported by the language of the governing documents. Assuming the act is otherwise lawful, this can still present a problem as shareholders technically could raise a derivative action against the board for engaging in corporate acts in violation of the governing documents.
Fortunately, the Nevada legislature recent enacted a set of laws upon which a board can rely in order to ratify, or validate, an otherwise noncompliant act. The ratification laws were modeled somewhat after the recent ratification laws enacted in Delaware,a leading corporate law state. However, citing the Delaware version’s exaggerated complexity, Nevada lawmakers opted to enact a clearer version that will provide guidance to boards as they embark on an act which could potentially result in costly liability.
Under Section 1 of SB 446, which will take effect on October 1, 2015, boards may retroactively ratify or validate a corporate act that would otherwise either not be in compliance or “purportedly” not be in compliance with “Chapter 78 [of the Nevada Revised Statutes] or the articles of incorporation or bylaws in effect at the time of such corporate act.”
If you are considering a corporate act or have questions about how to interpret a certain provision of your company’s bylaws or articles of incorporation, please contact the Stone Law Offices, serving affluent clients throughout Las Vegas and surrounding areas of Nevada. Craig Stone can be reached at: 877.800.3424.
Friday, September 4, 2015
Can a Yelp.com reviewer face defamation claims for leaving an unflattering review?
As you are likely aware, Yelp.com has become a preeminent source for peer reviews of everything from restaurants to recreational events. The site has come under fire in the past, however, by owners who claim significant and irreversible pecuniary loss as a result of negative reviews from anonymous patrons – or, perhaps, even from those who were never patrons in the first place.
Historically, the laws of defamation have worked to compensate victims of slander or libel for financial losses incurred as a result of untrue statements that are exceptionally derogatory and inflammatory. However, when these laws were first contemplated, the concept of online peer reviews was barely a glimmer on the horizon. So, how does defamation doctrine operate in this context?
Before discussing the legal considerations of a Yelp.com-related defamation suit, it helps to know some of the lingo. First, lawsuits in this context – which are generally not designed to reap great financial rewards as much as to serve a greater principled purpose – are known as Strategic Lawsuits Against Public Participation, or SLAPP lawsuits. So far, 28 states and the District of Columbia have passed anti-SLAPP legislation (including Nevada) – and many are hoping Congress will take heed and make similar strides in protecting honest, but disgruntled, reviewers from the costs of defamation litigation designed to censor or silence them.
In May, 2015, the Speak Free Act was introduced to the U.S. House of Representatives, backed heavily by lobbying efforts advanced by Yelp.com and similar tech companies. In essence, the bill would require the petitioner (i.e., party seeking compensation) to prove at the outset that the lawsuit is likely to prevail. If not, the lawsuit must be dismissed with prejudice, thereby protecting the online reviewer from having to spend tens of thousands of dollars in legal defense fees.
If your business is facing a lawsuit or you would like to discuss your rights in light of Nevada’s anti-SLAPP laws,which were just amended on June 1, 2015,, please do not hesitate to contact Stone Law Offices. Our expert attorneys serve clients in Las Vegas, throughout the state of Nevada, and nationwide. We can be reached at 877-800-3424
S. Craig Stone II of Stone Law Offices, Ltd. serves clients throughout Clark County, Southern NV, Las Vegas, Henderson, Boulder City, North Las Vegas, Summerlin, Carson City, Reno, Washoe County, and Nye County. Also serving clients with asset protection nationwide.