The federal government is changing the way we launch new businesses. Acting under the belief that too many criminals are using anonymous shell companies as a mask, Congress adopted the Corporate Transparency Act (the “CTA”). The CTA requires most businesses to report...
Today, LLCs are ubiquitous. Even the least business-savvy person will recognize that most companies with whom they deal are limited liability companies, and not corporations. I have heard lawyers say, “It’s malpractice to use a corporation nowadays.” While that phrase...
When developing a new small business, one consideration for entrepreneurs is to find an idea that fits their talents, interests and goals. A business that is a poor fit for yourself and your partners is unlikely to succeed. Similarly, your new business needs a...
Effective January 1, 2022, all limited liability companies (“LLC” or “LLCs”) within the State of Ohio will be governed by Ohio’s new limited liability company act, codified in Chapter 1706 of the Ohio Revised Code (the “Revised Act”). The Revised Act is a complete...
The $900 billion, 5,593-page stimulus bill includes major benefits for PPP-eligible businesses. A hard-hit business may obtain a second PPP loan, with a principal amount equal to the lesser of $2 million and 2.5-times average monthly payroll (measured during either...
SBA rolled out a third forgiveness form, one that will all but assure full forgiveness for small businesses that borrowed up to $50,000 under the Payroll Protection Program. Form 3508S will not penalize a borrower for reductions in payroll or reductions in employee...
On Aug. 4, SBA released a set of answers to frequently-asked questions concerning the PPP forgiveness process. Now that the covered period is 24 weeks, most borrowers with ongoing operations are not concerned about hitting their maximum forgiveness. But there are...
Senate Republicans have announced a framework for the HEALS Act, which will include a Round 2 of the Paycheck Protection Plan. A lot of provisions will remain the same (i.e., 2.5x monthly payroll will set the loan amount). But there are some key differences in the...
The trend is clear: The government is making PPP loans more and more stress-free. First, SBA decided it would assume the truth of the “necessity” certification for loans under $2 million. Second, the government created safe harbors for the headcount calculation....
Borrowers and lenders are now preparing to process applications for forgiveness of PPP loans. In the past month, the government has taken several steps to convert PPP from a loan program to more of a grant-with-strings program. But borrowers will still be obligated to...
