Creditors’ rights in business bankruptcy are the legal entitlements of a lender to recover funds from a debtor who has filed for Chapter 7 or Chapter 11 relief. These rights are determined by the priority of the claim, the type of collateral held, and the specific bankruptcy chapter filed. While an automatic stay halts immediate…
Selling a business in Massachusetts can result in very different tax outcomes depending on how the transaction is structured. Asset sales and stock or ownership interest sales are taxed differently, and the allocation of the purchase price can significantly affect capital gains and ordinary income exposure. Sellers may also have opportunities to defer taxes through…
Key Points: An IRS business audit reviews your financial records to confirm that your income, deductions, and tax payments were reported accurately. During the audit, the IRS may request documents, ask questions about your operations, and examine your accounting methods. Most audits involve both written correspondence and some form of in-person verification, depending on complexity….
As AI tools become more common in business for content creation, marketing, design, or automation, company owners need to understand how copyright law treats AI-generated content. Under current U.S. law, works created solely by AI generally cannot be copyrighted. However, content that combines meaningful human creativity with AI assistance may still qualify for protection. Massachusetts…
A personal guarantee makes an individual personally responsible for a business loan if the business cannot repay it. This means the lender may pursue personal assets such as bank accounts, wages, or property to satisfy the debt. Before signing, business owners should understand how guarantees affect liability, how they can be limited through negotiation, and…
Key Takeaways: When it comes to business contracts in Massachusetts, restrictive covenants are often a key consideration. These legal provisions can protect a company’s interests by limiting certain activities of employees, contractors, and business partners after their relationship with the company ends. However, while restrictive covenants can help prevent competitors from gaining access to proprietary…
Mergers and acquisitions involve the combination of two businesses to increase profits, improve efficiency, and enter new markets. Companies involved in M&A are subject to complex regulations that must be cleared before the deal can move forward. It’s critical to have legal counsel represent your organization, but there are added benefits to retaining local counsel….
What Is the Corporate Transparency Act (CTA)? The Corporate Transparency Act (CTA), which went into effect in January 2024, is intended to help the government fight various illicit financial activities like money laundering and tax evasion. If you are a business owner, you need to understand that the CTA might require your company to report…
Forming a partnership is one of the best ways to conduct business. It allows owners to pool their resources and knowledge so they can work together for the benefit of each other and the company. By the same token, many partnerships have fallen apart due to conflict and disagreements. Partnership disputes are among the most…
If you’ve built a successful business, the time may come for you to franchise it. Although franchises are excellent opportunities for a business to reap substantial rewards, many of them end up failing. It is imperative that the company’s owners know the risks as they thoughtfully make the decision to franchise. Below are some questions…
