What’s important for people eyeing opportunity for business in Cuba to keep in mind is, in spite of the opening of diplomatic relations, there still is a U.S.-Cuba embargo in place. Lifting the embargo will take an act of Congress; what has changed, explains Melissa Proctor, a partner in the law firm Polsinelli, is the two agencies that have jurisdiction over commerce under the … [More]
Considerations with Funding a Company
Determining the best capital structure for a business is one of the many difficult decisions owners and founders must make. Capital structures vary widely, and what may work best for one company may be completely wrong for another — depending on the industry area, resources available and management team. Different capital structures include bootstrapping (completely financed by … [More]
Keeping Business in the Family Way
Earlier in May, Cathy Hughes, an attorney-adviser for the Estate and Gift Tax Policy Office for the United States Department of the Treasury, sent shockwaves into the tax and estate planning community by announcing that new regulations would be implemented to make it much more difficult for families to transfer a family business to the next generation utilizing business … [More]
Equity Crowdfunding Comes to Arizona
Arizona’s new crowdfunding law, which is intended to give small companies in the local Arizona economy greater access to capital, took effect on July 3, 2015. Arizona joins a growing number of states that have recently enacted laws permitting some form of equity crowdfunding. For startups and other emerging growth businesses that may not have ready access to traditional sources … [More]
New Labor Rules Are Reason for Risk Assessment
The National Labor Relations Board has, historically, focused on the unionized part of the National Labor Relations Act, but the act has always covered non-unionized employees as well — and this is where the current NLRB is especially focused. The NLRA’s “mutual aid and protection” component is what the NLRB is using to greatly expand its realm of authority. According to Joe … [More]
New Labor Rules Spur Uptick in Union Activity
Recent years have seen tremendous evolution in labor law — more than in preceding decades, according to Joe Clees, a shareholder in the Phoenix office of Ogletree Deakins and a past chair of the Employment and Labor Law Section of the Arizona State Bar. It is, however, a realm that is particularly susceptible to change, says Clees, explaining that change is based on the party … [More]
Sweepstakes Offers: Legal Promotion or Illegal Gambling?
Many businesses look to hold sweepstakes, raffles, poker tournaments and other contests for marketing purposes. They don’t realize that these activities can amount to illegal gambling. “Gambling” generally means risking something of value for a chance to win a prize. With only limited exceptions, it is against the law for an Arizona business to benefit from gambling. … [More]
Intellectual Property Is Not Created Equal
Business owners tend to underestimate their intellectual property (IP), says Lee Fraley, a partner in the Phoenix office of law firm Snell & Wilmer who specializes in IP and works with many emerging businesses in acquisitions and related transactions. “They tend to think IP only includes patents, but it’s much more than that — it’s almost anything that gives a company a … [More]
Balancing on the Internship Tightrope
Summer is traditionally a hot time for internships. For companies looking to bring on interns, the most important consideration is whether to make it an unpaid internship or a paid one. From the legal standpoint, “It’s a relatively new area of law that is just catching fire across the country,” says Lindsay Leavitt, an attorney in the Phoenix office of Jennings, Strouss & … [More]
File this Under: The Complexity of Managing Personnel Documents
This article has been updated. Please click here to read the updated article. The basic management of personnel files used to be pretty simple: Collect some basic information and stick the files on a shelf somewhere. Today, the matter of collecting and storing private employee information is not as simple, even with the available option of going digital. For example, … [More]
Working Out Equity and Ownership Issues
“One of the most important things for startups to know is how precious their equity is; the ownership in their company is,” says Peter Wand, a partner with the law firm Lewis Roca Rothgerber, noting that in some incubators and almost all accelerators there is an aspect of investment in exchange for a share in the company. All incubators and accelerators operate differently, … [More]
For-Profits Can Pursue Public Good
For-profit corporations must be run to maximize profits to their shareholders. Decision makers who put any other consideration above profit may be sued. Arizona’s new benefit corporation statute, which went into effect January 1 of this year, turns that situation around, providing a route for businesses that want to play to a social conscience. Businesses may now choose to … [More]
Slander Lawsuits: Complicated and Costly
Someone is defaming you or your firm … what action should you take? Before even considering legal action, it’s important to understand what defamation is. “Defamation is making a false statement about someone that causes damage to his or her reputation,” says Daniel Barr, a partner in the Phoenix office of Perkins Coie, LLP. “Libel is written defamation and slander is spoken, … [More]
No Legal Risk with Office Gambling? Don’t Bet on It
If part of your office culture includes friendly wagers for Fantasy Football, the Super Bowl, March Madness and Lottery office pools, you might want to quit while you’re ahead and put the kibosh on any gambling activities. That’s because, even though it is widely accepted and popular among employees, any wagering involving money and bets could run afoul of state law and open up … [More]
Business Divorce: Plan Ahead to Avoid the Pain of Breaking Up
Like a marriage, business partnerships don’t always last forever, and lengthy disputes can be nasty. Knowing one’s ownership rights is important, and many business executives make the mistake of not planning well and educating themselves before the partnership is formed. Pouria Paknejad, a trial attorney and partner with Scottsdale-based Smith Paknejad PLC, sees a wealth of … [More]
Maneuvers in Commercial Leasing
Entering into a commercial lease can signify an exciting time of growth or it could be a time of change, when a company needs to downsize. Either way, it’s important to understand the lease language and what the long-lasting economic and legal implications are before signing on the dotted line. Kevin Judiscak, an attorney with Phoenix-based Engelman Berger, P.C., says many … [More]
Contracts: Terms, Time and Negotiation
With so many different types of business contracts and so much to understand about negotiations, disputes, breaches and litigation, it’s no wonder business owners and executives often are confused. There’s a plethora of educational articles online about contract negotiation and even some silly contract songs on YouTube, but the bottom line is that if business owners don’t … [More]
Hiring on the Right Side of the Law
The gamut of issues businesses must properly navigate when bringing on a new hire ranges from background checks and social media history to drug testing to treatment of disabled and other specific classes of workers — and the correct approach is not necessarily intuitive. In some cases, the law is downright confusing, such as the rules around E-Verify. This national database of … [More]
