Richard Chapo

Foreign Corporation – You Might Be Designated As One

The legal system comes in categories and layers that most people don't grasp at first. One of the layers has to do with how corporations are regulated and leads to the odd situation where many corporations are designated as "foreign" even if they are form... Read >

Don’t Inadvertently Breach Your Corporate Protection

Corporations are valued for a number of reasons and the shield against liability is certainly a big one. Given this, you really don't want to inadvertently breach your corporate shield. What is the corporate shield? It is the barrier that is put up be... Read >

IRS Creates Easy Online EIN Application Process for Businesses

As most know, you have been able to obtain an EIN online through the IRS for new businesses. The process was fairly confusing, however, because the IRS essentially just put a form online. That has all changed.Just so we are clear, EIN stands for employee ... Read >

Options For Forming Corps and LLCs

Given the fact that the threat of getting sued is on just about every business owner's mind, it is hardly surprising that most businesses are held in the form of a corporation or limited liability company. While this makes sense, how to actually form an e... Read >

Timing the “S” Corporation Designation

The corporate entity is a very popular one with most businesses. Although traditional "C" corporations are frowned upon for small businesses, "S" corporations are viewed more favorably. So, just what are "S" and "C" corporations? The technical answer i... Read >

Issues with Capitalizing Your New Corporation

Once you register a corporation in your state, you must go ahead and capitalize it. This raises a host of questions regarding the best way to do it and potential risks of getting it wrong. First things first. Any discussion of capitalization needs a d... Read >

Piercing the Corporate Veil – Factors Considered

Most shareholders believe a corporation protects them from personal liability. This is generally true unless alter ego is successfully asserted. Alter ego is an equitable claim that a corporation should be set aside in a lawsuit and the shareholders h... Read >

Piercing the Corporate Veil – Alter Ego

Deciding to incorporate is usually a function of seeking to protect oneself from the risks of doing business by employing a corporate shield. Ah, but can that shield be penetrated? Yes! The internet is an amazing part of our lives, but it has created a... Read >

Common Question about LLCs

The limited liability company is a popular business entity for small businesses. Here are some common questions and answers regarding the entity. LLC stands for limited liability company. The entity was first created in Wyoming in the late 1970s, but ... Read >

Get Sued By Competitors for Lying On Your Privacy Policy

Many sites put up privacy policies without giving them much thought. Once up, they are often forgotten about even if the policy is later changed. This can lead to disaster as one recent case showed. You probably are not surprised to learn that lying i... Read >

The Advantage of an S Corp over an LLC

It goes without saying that the LLC is the media darling when it comes to choosing an entity for small businesses. In some cases, however, an LLC is at a disadvantage compared to an S Corporation. Originating in the late 1970s in Wyoming, Limited Liab... Read >

Claiming An Infringement On Your Domain Name

A domain name is your address on the web, which can make it vitally important. So, what do you do when someone tries to move onto your yard? If you work on the web at all, you know that domain names can be very similar. This raises the question of whe... Read >

Legal Issues When Hiring Someone to Build Your Site

Given the costs associated with hiring employees, a vast majority of businesses now hire independent contractors to build and/or maintain their websites. This raises a host of legal issues. First and foremost, it should be a requirement that the perso... Read >

Buying A Website – Problems with Intellectual Property

There are many ways to make money online including buying another website that may be a competitor or compliment to yours. When doing so, you need to watch out for IP problems. The creation of a web business tends to be a herky-jerky event. Things can... Read >

Defaulting Into A Business General Partnership

When it comes time to start a business, many people just get on with the process without really thinking about issues like taxes, liability and business entities. This can lead to unintended consequences. If you start a business and are the sole owner... Read >