Penning Group Blog

The Penning Group blog is written and edited by the advisors and attorneys of The Penning Group, providing practical business, personal, and legal information. To view blog posts by category, choose a topic area from the sidebar menu.

Monday, October 12, 2009

Businesses wishing to raise capital by issuing and selling securities (typically "stock") face a complex maze of laws, rules and regulations, both at the federal level and in each state where the securities are to be offered and sold. These laws govern the process for the registration of the securities, set forth the criteria which must be met in order for the securities to be exempt from registration, regulate the conduct of those involved in the offer and sale, provide for enforcement and set forth fines, penalties, and both civil and criminal liability for violations.

This regulatory landscape changed in Michigan on October 1, 2009 when the new Michigan Uniform Securities Act...

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Monday, September 28, 2009

On September 2, 2009, John Buckley, Chief Tax Counsel for the House Ways and Means Committee, shared his opinion regarding the future of the federal estate tax: "I think you will probably see a one-year extension based on the statutory pay-go." Mr. Buckley was referring to the Statutory Pay-As-You-Go Act of 2009 (H.R. 2920). This bill passed the House in June, 2009. If enacted, it will undo some currently scheduled expenditures and tax provisions, including the previously scheduled permanent extension of the estate and gift tax at 2009 levels.

The permanent extension of the $3.5 million exemption, coupled with the 45% top estate tax, would cost the government...

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Wednesday, September 16, 2009

Michigan recently enacted legislation adopting a new "hybrid" business entity—the "L3C," a low-profit limited liability company. The L3C is designed to promote private investment and philanthropy/social welfare through a single corporate entity.

Individuals and institutions with the means to invest traditionally look either to private enterprise or to charitable giving. If investing for-profit, the investor typically seeks an expected rate of return over 5%; if giving to a non-profit, the donor expects a flat 0% (or negative) rate of return. The Low-Profit Limited Liability Company is able to bring together a variety of entities, such as foundations, trusts, endowments, pension...

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Monday, August 17, 2009

The push to develop alternative sources of energy continues to gain momentum and has created a sense of urgency among various federal, state and local governmental agencies and private power companies. The Detroit Free Press reported in an article in its Sunday, August 16, 2009 edition that one significant problem of increasing wind and solar energy is the overburdening of the nation’s electrical grid and increasing the threat of blackouts. The funding committed by President Obama to prepare high voltage lines for handling the additional load of alternative energy supply is less than 5% of the 130 billion that power users, producers and the U.S. Energy Department say is needed. The...

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Sunday, August 2, 2009

"In response to this increased risk, we have developed a comprehensive MIOSHA manual that addresses the areas most cited by MIOSHA inspectors."

With the current economic climate, many businesses are having to re-evaluate their workforce and reduce the number of employees based on economic constraints. This can result in terminated employees filing complaints with various agencies regarding alleged labor violations, including MIOSHA violations. Inspections by governmental agents under MIOSHA can be very costly both in time and money to a business. In response to this increased risk, we have developed a comprehensive MIOSHA manual that addresses the areas most cited by...

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