Business Law

The U.S. District Court for the Northern District of Texas has struck down the Federal Trade Commission's (FTC) rule banning most non-compete agreements. This groundbreaking decision, effective August 20, 2024, has far-reaching implications for employers and employees across the United States.

Passing on your business to the next generation by creating management (how your business will be managed if you are gone) and business succession plans (how your business will be owned) will help you get the most value for your business and hopefully, avoid hurting family and business partners. (Read more...)

Noncompete agreements are legal contracts that restrict employees from working for competitors or starting competing businesses for a specified period and/or within a certain geographic area after leaving a job. These agreements aim to protect employers by preventing former employees from using proprietary knowledge or trade secrets in competing ventures. However, the Federal Trade Commission (FTC) has recently finalized a rule to ban most noncompete agreements nationwide, effective September 4, 2024. This move is intended to promote competition, increase wages, and foster innovation, though it has sparked controversy regarding its impact on businesses' ability to protect trade secrets and make long-term investments in their workforce.

A Management Succession Plan (MSP) is a vital component of your Business Success(ion)™ plan (Business Exit Strategy). A Management Succession Plan (MSP) determines who will run your business if you face an unexpected exit, either by death or incapacity.

WHO can sign contracts for your company? Who can legally bind a corporation? Who is not allowed to sign a contract? Who can sign a vendor contract? The answer depends on how your business is formed and the founding documents your company has in place.

The CTA was enacted to help the U.S. Government combat money laundering, terrorism, tax evasion, and other financial crimes by creating a national database of organizations in the U.S. that identifies the human beings behind the companies as owners or controlling persons.

Retention bonuses protect the: 1. Seller by keeping key employees incentivized to remain at the company and help the company achieve agreed upon targets after the sale of the company. Sellers may also have additional payouts that are “earned” and depend upon company results for some time after the sale during the “earnout period”. 2. Key employee by providing job security and incentives before, during, and after the sale of the company. 3. Buyer of the business by keeping the intellectual capital (key employee knowledge) with the company while the buyer learns the ins and outs of its new business.