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Linda Phillips

Commercial Leasing for A Small Business

Are you looking to renew or enter into a new lease for commercial space for your business.  Before talking to the landlord, you should have a good idea of what is expected from you and what you can expect from them.  Commercial leases are contracts, enforceable by and against both parties in court or via …

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Patrons, Patronizing, Patronage Dividend

These are all terms used in the cooperative business community and sometimes their meanings are unclear or jumbled.  This blog will discuss the definitions of these terms with examples of how they are used by different types of cooperatives. A patron patronizes a cooperative and receives a patronage dividend at the end of the year.  …

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Updated Section 1042 Tax Benefits

There is a section of the Internal Revenue Code (IRC) that provides some tax benefits for people who sell their companies to either an ESOP or to a worker cooperative. This blog will explain how 1042 provides tax advantages when selling to a cooperative.  If you are thinking of becoming employee-owned or selling your business to …

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Selling to a Worker Coop Over Time

Many businesses are looking at the possibility of selling their companies to their employees through a worker cooperative.  They have crunched the numbers, gotten the employees interested, have figured out the financing, but now want to explore the timing of a potential sale.  Often there is a misconception that the owners have to sell 100% of the business in one lump sum, in …

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Mandatory Business Owner Reporting

The federal government has passed some new legislation that will require small businesses to report personal information about the business’s owners to a database controlled by the Securities Exchange Commission.  The legislation is called the Corporate Transparency Act (the “Act”), adopted as Title LXIV (64) of the 2021 National Defense Authorization Act.  The purpose of …

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