Markus May's Answers

First job of a recent grad: Mutual Separation Agreement vs Performance Review. What do I do?

Here's some thoughts: Make copies of everything that says you did a good job. Get a copy of the employee handbook and any employment agreement you signed. Is there a non-compete in your employment agreement? If so, get them to waive enforcement in conjunction with your pending layoff. If there was anything in the past written about severance, get a copy of that. IF other employees got severance take notes on amounts. Get a copy of your personelle file from human resources. Follow up...

Which type of business should i form

Interesting question. Not sure about the answer for NC as I am in Illinois, but suspect the answer is similar. Partnerships, as you note, are generally formed when 2 or more people join together in a common enterprise for profit. No written agreement is generally necessary and this is all based on what is called common law. This is the old law that has been around a long time and is based on cases from courts. Generally all partners in a general partnership are liable for all of the partnership...

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Which type of business should i form

Interesting question. Not sure about the answer for NC as I am in Illinois, but suspect the answer is similar. Partnerships, as you note, are generally formed when 2 or more people join together in a common enterprise for profit. No written agreement is generally necessary and this is all based on what is called common law. This is the old law that has been around a long time and is based on cases from courts. Generally all partners in a general partnership are liable for all of the partnership...

1 person marked this answer as helpful

My business partner wants out of the llc, but with unrealistic demands.

Each state's law is different and I don't know what Virginia provides. Generally speaking I believe most states impose a duty of loyalty on the operators of businesses to not start competing companies while working for a company. This is why people will resign from a company prior to actually competing with that company by starting a new company. Under this scenario, you could possibly resign and then start the competing business. In some states, this duty may extend to the owners of small...

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Merger / Aqusisition

The pros and cons are always fact specific and depend on your specific situation. I assume you have already looked at this from a business standpoint and see reasons to do the deal and these are your pros. Having said that, here is a list of ten things to consider (based on Illinois law, though most will likely apply in CA): 1. Anytime you bring in fellow owners, there is a fiduciary duty of loyalty and fair dealing to the other owners. You can't set up a competing business. You generally...

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How do you get out of a lease agreement with someone your in a relationship with, when they don't want the relationship to end?

Tough to tell without seeing the lease. It sounds like the lease is between the apartment and the girlfriend and your son is subleasing? Or are they both on the lease? Or just your son and he is leasing to her? One idea - check out the subleasing provisions. See if your son can find someone else to come in as a roommate to take his spot. Markus May mmay@illinois-business-lawyer.com www.illinois-business-lawyer.com

Who should I contact to review a recording agreement between myself (artist) and a record producer?

An entertainment lawyer. Your business lawyer should be able to help refer you to an entertainment attorney. mmay@illinois-business-lawyer.com www.illinois-business-lawyer.com

I own a Tattoo Studio and having difficulty determining the rights of my customers.

By "my guys" I assume you mean the tattoo artists that are providing tattoos and that they are providing you with a percentage of what they charge the customers. It sounds as though you have nothing in writing with the artists. You may have problems other than just customer complaints. They may be considered to be employees under federal and state law which would potentially subject you to liability for employment taxes such as FICA (social security) which should be withheld from employee's...

Sub-contracted tattoo artist fired with a no compete contract

Each state's law is different, so a VA attorney should be consulted if you think the owner may try to enforce the non-compete against you. In Illinois, and most other states, non-competes are hard to enforce and the law is constantly changing as new case law develops. Often you need consideration (money or a new job) for the non-compete to be enforceable, though continued employment may be sufficient consideration in certain states. Also, the noncompete can't be too broad in scope - either...

Can you transfer shares in an S Corporation?

I am an Illinois attorney and not sure about NC law so you should check with an accountant or tax lawyer in NC. However, your shares should be freely transferable as you are the 100% owner. The federal annual gift tax exclusion for 2010 is $13,000. So you can transfer up $13,000 under federal law without needing to report. If over $13,000, then you begin to use up the $1 million lifetime exclusion and a gift tax needs to be filed. Some people do gifts over time - e.g. 1/2 one year and 1/2...