Over the last 20 years, limited liability companies have become the preferred way of doing business for many small and medium-size enterprises. That is primarily due to the fact that LLCs are easier to form than corporations. Unfortunately, that simplicity lulls many people into trying to do it themselves or working with forms provided online. Sure, if your LLC is only going to operate a kid’s lemonade stand for a couple of months over the summer, that might be good enough. But for most people engaged in real businesses with significant risks, it’s not.
The Federal Trade Commission (FTC) recently released a proposed rule which, if adopted, will broadly ban the use of non-compete agreements with workers throughout the U.S.
Doctors, lawyers, accountants and other professionals face particular challenges in their succession planning. Unplanned exits are at high risk for losing clients, revenue, and good will. Client replacement costs and other continuity challenges abound for the remaining partners and staff. On the other hand, an action plan to maximize profit in the sale of a practice typically takes 18-24 months. In our multidisciplinary practice, we know from experience that the most effective succession planning integrates legal planning techniques, personal financial and retirement planning, and in some instances, finding a business broker.
As the pandemic wears on and effective vaccines roll out to many adults, employers and employees are hoping to stop wearing masks in the workplace. To reduce labor risks, we advise employers to keep a workplace mask policy in place, remind all employees that the policy remains in effect, and directly address employees who do not cooperate.
As we begin 2021, we are still faced with Covid-19 affecting every part of our lives. While hope is on the horizon as vaccines are being produced and distributed, we must continue to proceed thoughtfully as we face these challenges. Besides the changes that the vaccine will bring, there are several important updates from the recent Stimulus Bill which was signed into law at the end of 2020:
As the United States (and many parts of the world) experiences a new rise in Covid-19 cases, Maryland Governor Hogan, by Executive Order, and Montgomery County have implemented new restrictive orders, effective November 10th, to strive to flatten the curve. These orders will affect many businesses throughout the state and will likely impact your actions as a business owner and employer, until these restrictions can be relaxed again.
Effective November 10, Governor Hogan, by Executive Order, has imposed or restored certain Covid restrictions against the ability of Maryland businesses to fully operate. The Governor’s Order also allows counties to impose more restrictive regulations: Montgomery County did just that by imposing a more restrictive regulation (also effective November 10).
In a recent case, the Court of Appeals of Maryland dismissed the appeal of a Maryland limited liability company (“Company”) in a breach of contract action because the Company failed to file a personal property tax return.
By now, most business owners have read the emerging scientific news that the COVID-19 pandemic may linger for one to three years. Alongside this “lengthening” of the curve, the media is filled with coverage of the political, social and economic pressure to re-open and significant concerns from employees that their workplaces will not be safe enough. In any event, businesses should prepare for re-closing and for one or more partial contractions before complete stabilization.
