Business Issues In Estate Administration

Just delivered a talk to the DuPage County Bar Association on family business issues in estate disputes. Reminded those present that most buy-sell agreements are not funded with “Key Man” insurance, that most spouses and children are incompetent to manage the business but want money, and that even rich people like the Wrigleys and the…

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Filings Required To Close Out An Illinois Business Entity

Just posted on Slideshare a detailed checklist of business actions, federal and state income and UI and sales tax forms to file, and entity-specific forms to file with the Business Services Division of the Secretary of State in order to close out an Illinois business entity. For details, see http://www.slideshare.net/wpriceiit/filings-required-to-close-out-an-illinois-business-entity

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Parent companies may not be liable for their subsidiary company’s contracts and other liabilities

The First District of the Illinois Appellate Court, in Saletech, LLC v. East Balt, Inc. et. al., 2014 IL App (1st) 132639, https://www.state.il.us/court/Opinions/AppellateCourt/2014/1stDistrict/1132639.pdf, upheld a decision that a distribution agent who claimed that the European parent of a Ukrainian subsidiary had agreed to implement an exclusive US distribution rights deal with the Ukrainian subsidiary in…

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Lying On Expense Reports Can Eliminate Rights To All Compensation, Even For A Company President

The First District of the Illinois Appellate Court upheld a $9.8 million award for ICD Publications, Inc. against Ian Gittlitz this December, http://www.state.il.us/court/Opinions/AppellateCourt/2014/1stDistrict/1133277.pdf Mr. Gittlitz had admitted to fraudulently taking more than $1 million in advances on entity distributions, without information to the other two co-owners of ICD Publications, Inc. He had signed an agreement…

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IRS Seizes Cash Deposits

The New York Times this week described an asset forfeiture case involving a restaurant with routine cash deposits of less than $10,000. http://www.nytimes.com/2014/12/14/us/irs-asset-forfeiture-case-is-dropped-.html?_r=0 Take-away: Get the information for a Form 8300, including taxpayer information numbers, for cash payments, even those involving non-terrorist items like Iowa eggs and bacon for breakfast, or risk equivalent (and unjustified) government…

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How Do We Get Rid Of Junior?

More than three quarters of all businesses in the US are family run. (The proportion is even higher elsewhere.) Family ownership means that family relationships, for good or for bad, often trump (or at least complicate) whatever the corporate documents say should be done about distribution of profits; hiring, firing, and promotion of managers; purchase…

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Money Sources For A New Product Or Company

The traditional sources of funding, for companies that don’t expect to grow enough to pay 50 times investment in two years (a tech angel funder’s demand) or 10x in two years (venture capital’s demand), while giving up control of their business, are: a. Factoring: Business factors deal with multi-billion dollar funds like Bibby (http://www.bibbyusa.com/) to…

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