“Nonprofit” or “Nonprofit Organization (NPO),” “Non-Governmental-Organization (NGO)” and 501(c)(3) are terms often used, in the United States, informally to describe the same thing: an organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code (i.e. “501(c)(3)” organization). However, each of these terms actually has a different and specific meaning. In short, an “NGO” is a subset of a nonprofit, not every nonprofit or NGO is a 501(c)(3), and all 501(c)(3)s are nonprofits. Read More “Nonprofit, NGO & 501(c)(3) – What’s the Difference?”
We are often asked how many directors a nonprofit needs. The answer really depends on a variety of factors including where the nonprofit was incorporated, whether the nonprofit is a 501(c)(3) or other 501(c) organization, what kind of 501(c)(3) the nonprofit will be, and the identities of the directors. This blog post will answer many of the frequently asked questions about the composition of nonprofit and 501(c)(3) boards of directors. Read More “How Many Directors are Needed on a Nonprofit/501(c)(3) Board?”
The “Most Favored Nation” or “MFN” clause, in business parlance, most often refers to a risk mitigating technique whereby a contracting party is guaranteed to get the best deal available, now and in the future. What it means is “we’ll enter into this deal now, but if I give a better deal to someone else, you’ll get the same deal.” Today’s post will discuss the application and crafting of a “Most Favored Nation” clause. Read More “Understanding the Most Favored Nation Clause”
Creating a New York Limited Liability Company (LLC) can be a challenge. This post explains step by step how to form an LLC under New York law. It is meant to assist those who want to form a New York LLC without a lawyer, accountant or online document preparation company, and provides the basic legal forms to do so.
While getting the appropriate legal support from a lawyer is always recommended, having a lawyer, accountant or online company help you form a NY LLC is not always necessary. Online companies essentially charge a few hundred dollars to help you fill out a form with your own input, plus a few hundred more for filing fees. Lawyers charge somewhat more, but are able to give legal advice and craft your New York LLC documents to your specific needs. However, cash is often tight for an entrepreneur embarking on a new enterprise, and some choose to go with an online company to save on cost. We understand and want to provide you the basic tools to form a NY LLC as cheaply as possible — by doing it yourself! Read More “How to Form a New York LLC”
Your intellectual creations can be some of your most important assets. Copyright protection can help protect these creations from being used or replicated without your permission. Today’s post will explain the following:
A corporation or Limited Liability Company (LLC) is a huge personal liability shield against the world. This is, perhaps, the main reason for a business owner to form a corporation (i.e. “incorporate”) or an LLC. Today’s post aims to describe what limited liability protection is about, why you may want it for your business, and some things to keep in mind to stay protected.
A brief history of the Corporation
The protection offered by a limited liability entity, such as a corporation or LLC, arises from the legal personality of the entity. The law recognizes these entities as “persons” separate from their owners. Just as one person generally cannot be held responsible for the actions of another, so too are owners of a corporation or LLC generally not responsible for what could be considered the entity’s “actions.” The concept of legal personality can be traced far back to ancient Rome. Read More “Why Form an LLC or Incorporate? – Understanding & Protecting the Limited Liability Shield”
Not too long ago, a colleague and budding entrepreneur expressed to me that new businesses would find it helpful to have a legal checklist for reference. So to commemorate my first post on this blog, I’m providing an annotated checklist for startups and new businesses.