AVOIDING CORPORATE DEADLOCK

Corporations, limited liability companies and other entities have become a standard resource or mechanism to help individuals shield themselves from personal liability when going into business, holding investments, or otherwise entering into a variety of undertakings.  The ever increasing use of such structures, however, can sometimes lead to other, unanticipated problems, particularly when the shareholders or directors of an entity cannot agree on matters impacting the entity.  In a worst case scenario, disagreements can escalate and eventually lead to complete gridlock, negating many of the advantages and corporate opportunities that once existed. In order to avoid such gridlock and protect … Continue reading

Changes to Overtime Requirements Under Fair Labor Standards Act Blocked

Employers and employees throughout the United States were significantly impacted yesterday following the issuance of a nationwide preliminary injunction entered by the U.S. District Court for the Eastern District of Texas. But for the Court’s ruling, which held that the Department of Labor exceeded the authority delegated to it by Congress in making changes to the overtime requirements of the Fair Labor Standards Act (“FLSA”), new regulations modifying the long-standing overtime requirements were set to go into effect, after approximately two years of public comment, consideration and advance notice, on December 1, 2016. Today, many employees and employers, who have … Continue reading

Corporate Veil or Corporate Fail?

By creating a corporate entity (whether it is an S-Corporation, C-Corporation or a limited liability company), many smart business owners seek to create an additional layer of protection between their personal assets or that of their family and the potential liability that can arise when operating a business. Unfortunately, what many do not realize is that simply creating the entity isn’t necessarily enough to achieve or maintain that protection. After the Articles of Incorporation or Articles of Organization, depending upon whether you decided to create a corporation or a limited liability company, have been filed and accepted by the North … Continue reading

ANNUAL REPORTS DUE TO NORTH CAROLINA SECRETARY OF STATE

With only a few exceptions (for instance, non-profit corporations), entities are required to file an Annual Report with the North Carolina Secretary of State by April 15th and to pay the accompanying fee with their submission.  Some business owners may not realize this requirement, while others may be so busy attending to the day-to-day affairs of their business that they forget to do so. The process to file an Annual Report with the North Carolina Secretary of State is not difficult.  Many individuals quickly handle the task themselves online or allow their accountant to do so when preparing their tax … Continue reading

Criminals Need Not Apply

Employers today face a wide variety of concerns when hiring new employees.  Can the business afford the costs associated with additional personnel?  What job functions must the new employee satisfy?  What skillsets are required?  How is the newly hired individual going to interact with its customers and, just as importantly, its other employees? More and more often, employers are turning to pre-employment criminal background checks as a means of answering or managing the perceived risk associated with at least some of these questions.  Seem reasonable?  Perhaps, but such checks can also open the door to even greater problems and potential … Continue reading

Employer Restrictions on Social Media Postings

Rare is the business entity that is completely detached from one form or another of social media. Indeed, a significant portion of businesses today directly utilize the benefits offered by social media platforms such as Facebook and Twitter. And even when a business does not itself engage in social media postings or tweets, you can rest assured that its employees do and will! So how can a business ensure that the messages posted on its social media platforms, as well as those posted about it by its employees on theirs, help promote the image it desires rather than hurt? How … Continue reading