The Corporate Transparency Act: New Requirements for Business Owners

by Hayes Cronk

As soon as late 2022, a new United States regulatory requirement could take effect, impacting millions of new and existing businesses. The Corporate Transparency Act (“CTA”) will require small businesses to file information about themselves and the individuals who formed, own, and control them with the United States Treasury Department. Failure to follow the CTA may result in civil and criminal liability for business owners, including civil fines of $500 a day and criminal fines up to $250,000 and up to five (5) years in prison.

Congress enacted the CTA as part of the Anti-Money Laundering Act of 2020. On December 7, 2021, the United States Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) proposed regulations seeking to implement the “beneficial ownership information” requirement of the CTA. A key provision of the CTA requires certain business entities to disclose to FinCEN their “beneficial owners” and other identifying information. The CTA is designed to prevent individuals from abusing legal entities to conceal proceeds of corrupt criminal acts, including money laundering. A driving factor behind the proposed regulations is for the United States to be aligned with international anti-money laundering standards.

 

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Piercing The Corporate Veil: Does a Corporation or LLC Really Protect Your Personal Assets?

by Brian Casserly & Hayes Cronk

Entrepreneurs often cite the limited liability protection afforded them by way of forming a corporation or a limited liability company as a primary purpose in creating the entity. Sure, there is the aura of sophistication and achievement that comes immediately along with it (as well as several other benefits), but this personal protection seems to be a key factor in most formation decisions.

Limited liability is the concept that the company’s debts and liabilities are its own—an owner of the company is not personally liable for them. This is instrumental in business creation as it allows for a separation between the obligations of the company and the assets of the owners while promoting entrepreneurial risk taking. Generally, if the company fails, only those assets that belong to the company, risk being lost – not the owner’s property. Of course, the homestead may be at risk when the owner uses his or her home as collateral for company obligations. However, there is a lesser known risk to the property under the concept of “piercing the veil.”

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Wills vs. Trusts: Which is Right for You?

by Sean Farrell

One of the first conversations I have with clients is the difference between using a will and a trust. For most clients, the decision between a will and a trust is about personal preference and which benefits appeal to them most.

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Navigating the Brave New World of Name, Image, and Likeness with NCAA Athletes

by Hayes Cronk

It's no secret every business wants to increase their brand recognition and generate more revenue. But being a "business" isn't always what you think of in a “brick and mortar" sense. Take celebrities, influencers, and athletes, for instance, using their name, image, and likeness (NIL) to generate income. In many communities, especially college towns, some of the most recognizable members are NCAA student athletes. However, up until recently, these student athletes were not permitted to monetize their NIL and instead solely relied on scholarships from their respective schools.

But on July 1, 2021, the NCAA made the decision to grant student athletes the right to monetize their NIL -- a decision that created a new industry, new marketing opportunities, and new legal agreements to navigate.

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You've Been Sued, Now What?

by Rachel Bir

The advice of an experienced attorney is absolutely critical to success in litigation -- whether that success comes in the form of a win in court or a favorable settlement. An experienced litigator, like the ones at Gutwein law, will think steps ahead and anticipate what the opposing party may do throughout the litigation process enabling you to obtain the best possible outcome for your situation.

Given that anyone can be sued at any time, we think it's important that our current and prospective clients have a basic understanding of the litigation process, so they can obtain proper counsel, and ultimately, have their interests protected.

Below, we've outlined the litigation process in seven steps to give you an idea of what it's typically like to be involved in a lawsuit.

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