Starting Monday, May 18, 2020, everyone in King County, Washington must wear cloth face coverings over their noses and mouths while at (a) “indoor public settings,” and (b) “outdoor public locations” where six feet of physical distancing from another person cannot be maintained. This is the written directive of Dr. Jeff Duchin by virtue of […]
Business
Understanding the Paycheck Protection Program Loan Forgiveness Application
On a May 15, 2020, the Small Business Association (“SBA”) provided its first draft of the Paycheck Protection Program loan forgiveness application (“Loan Forgiveness Application”). Although there will be a great deal of work to do in order to unpack everything in the application from a legal and accounting perspective, it is helpful to take […]
Safe Harbor Guidance on Necessity and Uncertainty Certification for PPP Borrowers
Recipients of PPP loans less than $2 million who were worried about the “necessity” certification they made on the loan application, and whether they should return their loans before the safe harbor date, can breathe a sigh of relief. A new SBA FAQ says their loan applications will be deemed to have been submitted in […]
Washington’s “Start Safe” Plan for Reopening Business
On May 4, 2020, Washington Governor Jay Inslee extended the restrictions set forth in his Stay Home-Stay Healthy proclamation through May 31, 2020, and released a Start Safe Washington plan that reopens the state’s economy in four phases. Under this phased reopening plan, some businesses may reopen as early as Tuesday, May 5, 2020, […]
Additional Cash Flow Relief for Businesses under the CARES ACT: Deferral of Social Security Tax Payments
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) gives the opportunity for (1) employers to potentially defer the deposit and payment of the employer’s share of Social Security taxes; and (2) self-employed individuals to potentially defer payment of certain self-employment taxes. This is a welcome relief to many businesses struggling to cover operating costs […]
That Doesn’t Belong to You
With the relative informality of limited liability companies (“LLCs”), it can be very easy for LLC members to fall into the trap of thinking that the company’s assets are their own. I find this happens often with restaurant clients, with the members starting to look at the restaurant’s food, wine, and spirits as things they […]
I Want Him Out
“I want him out.” “I want her gone.” I hear this a lot from clients. They co-own a limited liability company (an “LLC”) with another person or another couple, and things just aren’t working out. They have equal voting power, or decisions require unanimous votes, and each side has a different, strongly-held opinion about how […]
The Awful Agreement
It’s an exciting moment. You’ve finally decided to do it. You and your friends are going to form a limited liability company and start your own business. You’ve put a lot of thought into this, crunched the numbers, and weighed the risks. It’s time. Once that decision is made, delays become painful. You’re ready now. […]
Seven Words that Scare Me
“Let me tell you what I did….” Nothing scares me more than hearing this from a client. I know that’s not the case for all of my fellow attorneys. In fact, I’m sure that it’s a litigator’s favorite phrase. For me, a transactional guy, however, it usually means trouble. Let’s face it, some things are […]
Will Valuation Discounts for Family-Controlled Entities be Eliminated?
Many families establish Family Limited Partnerships (FLPs) or Limited Liability Companies (LLCs) and then gift interests in these entities to their children. In doing so, they take advantage of valuation discounts (discounts for the lack of marketability of a family-controlled entity and for minority interests), and pass significantly more value than could be claimed for […]