What is an Employee Stock Ownership Plan (ESOP)?

ESOPs typically are stablished as a corporate financial strategy. Also called a stock purchase plan, this is a trust fund created to allocate company shares to employees. Employer contributions to the plan are tax-deductible, and employees do not pay taxes on their shares until distribution. The employees receive the money when they leave the company […]

Freelancing vs Employment

If your work is the result of a new business, pivot or side gig, understanding the implications of the laws that apply to your business structure is critical. If you are a freelancer – also known as an independent contractor, subcontractor, contract worker, or gig worker, you are essentially a small business. The law will generally […]

Are You Considering a Business Partnership?

If your business will be owned and operated by more than one individual, structuring as a partnership may be the best way to go. There are two types: a general partnership and a limited partnership.

Commercial Landlord Tenant Law

Under Florida law, both commercial landlords and tenants have rights and responsibilities. It is important to understand the legal process as it affects this type of business relationship. The rights of both parties depend largely on what is in the rental agreement.

Temporary & Preliminary Injunctions

After the filing of a lawsuit, a party can ask the judge to issue a temporary injunction.  The temporary injunction seeks to require the other party to either commit a certain act or to prohibit it from performing a particular action. In a business or commercial law context, injunctions are often sought to enforce a […]

FORMING A FLORIDA LLC – WITH YOUR SPOUSE

Creditors of a Florida single member LLC (“SMLLC”) are able to reach the assets of SMLLC by obtaining a charging order and then foreclosing on the member’s interest.  However, if an LLC has multi-members, creditors are limited to distributions that a debtor member would ordinarily receive from the LLC. To prevent a foreclosure of a […]

ONE MORE REASON FOR A NONCOMPETE AGREEMENT — INEVITABLE DISCLOSURE DOCTRINE

A noncompete agreement is a standard business agreement to prevent a former employee from competing against you upon his departure from the company. When such an agreement is not in place, employers have to scramble for a solution to prevent the former employee from disclosing confidential information to the new employer. In particular, litigators are […]

WHO WANTS CAKE? SECTION 368 TAX-FREE REORGANIZATIONS FOR CORPORATIONS

Derek P. Usman, The Usman Law Firm, P.A.   After making the decision to dispose of a corporation, entrepreneurs and business owners should consider tax consequences and plan accordingly. Often, an exit strategy utilized by a private corporation is the acquisition of the corporation by a public company whose shares are readily saleable because they […]

THE THREAT IS REAL – THE FIGHT FOR LIMITED LIABILITY IN ILLINOIS

Derek P. Usman, The Usman Law Firm, P.A.   The statutory provisions providing limited liability to shareholders of Illinois business entities were undermined recently when the Illinois Supreme Court endorsed “direct participation” as a viable theory of tort liability under Illinois law. In Forsythe v Clark USA, Inc., 2007 WL 495292 (Ill. Sup. Ct.), our […]