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Is the document I signed that had a notary stamp on it legit?: My employer recently made me sign a document and I am wondering if the document is legit. The document had a notary stamp at the bottom from the parent company that is in Wyoming that my employer also owns. It was not a bank or anyone that notarized it, rather, my employer had a stamp and uses it for whatever he wants and sometimes rather than for it's intended uses. Since the stamp is from the parent company that is in Wyoming and not from Colorado where I work, does it still hold up? Since it was not notarized by anyone with the state of Colorado and just my boss, does it still hold up?

Asked 9 days ago in Contracts

Andrew’s answer: It sounds to me like this is a corporate seal and not a notary stamp. It wouldn't be uncommon for a business to crimp its seal or stamp it onto official records for authenticity purposes. Without actually seeing the document, it can't be confirmed.

Answered 8 days ago.

How do I stop a home lien (extortion) from a contractor that may not even be licensed it seems.: There is no room for negotiation. We already paid this guy. He's creating new bills that are of thin air and how is a lien possible?? We had a verbal agreement of approx. $2500 to put up a dry wall partition and re-route ducting to the new space. We gave this man $500 cash advance for materials (stupidly) and we bought and delivered the drywall to reduce our cost. He dragged the job on and would not give us a completion date, so we fired him. He then sent a fabricated a bill, not to mention added LOTS of imaginary hours. And even though we paid him above market value for what was done & wrote him a letter telling him thats this his check was final, ($2160 total paid) 2 months ago. He has TODAY sent us an Intent to Lien notice (May 17th) for another $3000. How can I stop this?? This guy is clearly a crook. BTW: He also entered without permission our home and removed materials knowing we were out of town, we text him to tell him NOT to come to the house while we were away and he broke in. (we did not file a report as we did not want to further engage this individual). HOW can I prove that this is simply extortion? STOP this Lein or Can/should I sue for extortion?

Asked about 2 months ago in Contracts

Andrew’s answer: I like Steve's idea. I think you follow option number one, and if that doesn't lead to the conclusion you want, go for option two.

In Colorado, mechanics liens are required to be foreclosed on within six months after they're properly perfected. Which also begs the question, did this contractor give you the proper notice in order to have been perfected? He must file the notice of intent to lien no more than 110 days from the date of the last work done on the property. Then, to file the lien, that has to be completed at least 10 days after the notice of intent, but no later than 120 days after the work was completed.

Think about this from a practical perspective: if he were to foreclose on your property over a $3000 claim, he would have to buy out the value of your house, sell it, and refund you the difference in return. Plus, that's an expensive proposition over $3000. I can't imagine any litigation attorney in the state taking on a judicial foreclosure case worth $3000. The cost alone would over exceed the value of the claim. And one is not entitled to attorney fees on a mechanics lien.

I would wait. If he doesn't release it or file a lawsuit against you after six months, sue for a spurious lien and get reimbursed all of your reasonable attorneys fees.

Good luck!

Answered about 2 months ago.

Is it possible to start an S Corp and have silent partners who are just along for the ride?: I'm in the process of starting a business in Colorado and I will need investors to get things started. I already have several people who want in, but this is my baby and I want to retain full control over the company decisions. Primarily in the scenario of an offer the be purchased by another larger company. Is it possible to have silent investors who are just along for the ride?

Asked 3 months ago in Corporate

Andrew’s answer: Congratulations on getting your business off the ground. Some solid advice has been given to you already. But here is a little more. When it comes to financing a business, you can finance it with equity, or you can finance it with debt. When you finance your business with equity, you are giving up an interest in the business by selling people shares in the business. Those individuals then become owners in your business, whether they have voting rights or not. Limited voting rights will help with management of the business, but in the end, they are still owners, and you still have obligations to them as such. Equity financing, on the other hand, basically means the business is going to borrow money and promise to pay it back, plus interest. The lender, then, is owed money but he/she has no right to vote or manage any aspect of the business. Think of this like borrowing money from a bank. The downside, here, is if the business goes belly up, you are still obligated to pay on the loan. With equity financing, as mentioned above, there is no obligation to pay it back, unless such terms are written in an agreement. So, your "investors" might be SOL. But be careful. I have seen many situations where investors get pretty pissed off when you lose their money despite warning them of the "dangers of investing in startup businesses." You will have significant disclosure requirements and any misleading of information, no matter how slight, could expose you to criminal or civil prosecution.

The reason for this is because, in both equity and debt financing, you are taking control of someone's and that person is losing control of their money. By definition, that is the sale of a security. And with the sale of a security comes significant regulatory and statutory control. But your exposure is very fact specific, and it entails a legal analysis of every action you've done from when and how you met your first investor to the first dollar that was invested. Do not try and navigate this aspect of your business alone. There is too much risk. Get a lawyer involved.

This isn't meant to scare you from reaching for your dreams by any means. It's meant to educate you so you don't trip out of the starting gate. Spend the money, and the time on good legal advice. It will be the best investment you make.

Good luck!

Answered 3 months ago.