Blog — Business + Corporate Services
Sunday, July 4, 2010
Proposed "Carried Interest" Tax Purports to Soak Wall Street But Hits Family Businesses
For the time being, the Senate has again abandoned efforts to impose a "carried interest tax" on venture capitalists, investors, and managers of family businesses. The tax would have increased the 15% capital gains tax rate on certain investors' profits to the top income tax rate, which is scheduled to hit 39.6% on January 1st (H.R. 4213). The share of investors' profits is called "carried interest." It might appear at first...
Monday, May 24, 2010
A large portion of the businesses in the United States are closely held companies, and many of the closely held companies are family owned enterprises. The long term perpetuation of the family business is a common and laudable goal of most founders. Developing strategic and successful transitions to subsequent generations largely centers on who will control the company and whether the control will be concentrated in one family member or a small group of family members, or if the...
Monday, May 24, 2010
Oil and Gas Leases: What Northern Michigan Landowners Should Know 
Recently, many of my firm's clients who own multiple acres of land in northern Michigan have been contacted by petroleum company representatives and offered oil and gas rights leases for their land. While many of these companies are reputable and offer fairly standard terms in their leases, they are generally trying to secure leases that are most favorable to them. The landowner should be aware of provisions that can be included to protect their...
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...
Read More...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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