IRS: tax traps and cautions

Article Abstract:

There are three important regulatory considerations that business owners must take into account in fixing the value of common and preferred stock in the estate planning process. Failure to recognize them could put business owners in trouble with tax authorities. First, preferred stock dividends must reflect the borrowing interest rate of the corporation. Second, the common stock must equal at least 10% of the corporation's value. Finally, the preferred and common stock must be at fair market value and appraised by an independent party.

Estate planning

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Board meetings: written consents and fiduciary obligations

Article Abstract:

The requirement of written consents in carrying out business transactions during board meetings is a standard operating procedure for many corporations. However, states have different laws on corporate board meetings and written consents. It is important for corporate board members to be thoroughly knowledgeable of laws governing these matters in the state in which the corporation is based. It is also important to realize that while writter consents are important, they may also hamper the decision-making capacity of corporate boards.

Analysis, Meetings, Corporations, Consent (Law)

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Don't underestimate the legal clout of your bylaws and corporate charter

Article Abstract:

Most entrepreneurs think that corporate bylaws are nothing more than summary requirements in setting up a company. However, this seemingly ordinary set of rules can make or break a business entity especially when some of the conditions of the company's operation changes. It is prudent to review the articles of incorporation and bylaws annually or every two years. The rules have to be reviewed immediately on the occasion of a buy-out of an existing stockholder or the addition of a new one.

Interpretation and construction, Laws, regulations and rules, Articles of incorporation

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