http://www.ericperkinslaw.com/index.php en eric@ericperkinslaw.com Copyright 2010 2010-08-25T19:30:07+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/how_to_keep_the_lebron_james_of_your_business_from_jumping_ship/ http://www.ericperkinslaw.com/index.php/whats-new/post/how_to_keep_the_lebron_james_of_your_business_from_jumping_ship/ Every business--big or small--has one or more key employees considered "MVPs" by ownership.  As a business owner, how do you protect your business from having the Lebron James of your team from leaving you when you need them the most?  After all, most employees in Virginia are at-will employees who can leave (or be asked to leave) any time for any reason, right?  While that is certainly true, there are a variety of strategies a business owner can pursue to increase retention rates for key employees: 1.  Strategic use of written employment agreements with the "MVPs" of your business can provide a greater degree of certainty over the term of employment and the circumstances under which the employment relationship may be terminated.  The use of a written contract can help both parties better plan ahead for thr future and strengthen their relationship. 2.  Creative use of equity and "equity-like" compensation for key employees can significantly promote employee morale, increase loyalty, and effectively incentivize key employees by better aligning their interests with those of the company.  For owners who are apprehensive about diluting ownership and taking on a business partner, a phantom equity program can offer key employees the economic equivalent of ownership in the company without the associated legal rights of being an equity owner.  For an MVP whose motto is "just show me the money," a phantom equity program might be effective. 3.  Carefully drafted non-compete and non-solicitation agreements can encourage key employees to stay put (albeit in somewhat negative fashion) or at least limit the potential damage they can do to your business if they jump ship for a competitor. These are just a few ideas to consider, all of which should be tailored to the specific facts and circumstances of your situation and structured with assistance from legal and tax counsel.  Closely Held Businesses and Business Start-Ups 2010-07-20T01:57:12+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/two_critical_lessons_entrepreneurs_and_business_executives_can_learn_from_h/ http://www.ericperkinslaw.com/index.php/whats-new/post/two_critical_lessons_entrepreneurs_and_business_executives_can_learn_from_h/ Here are a few helpful hints for any entrepreneur, business executive, or professional in the sports and entertainment industry pulled from several pending lawsuits initiated by pro wrestling legend and actor Terry Bollea, better known to the world as Hulk Hogan: 1.  Always Maintain Adequate Insurance.  Hogan, who was reportedly worth as much as $30 million a few years ago before a less than amicable divorce and a horrific car accident involving his son that left a young man permanently disabled, apparently only had $250,000 worth of liability insurance coverage at the time of his son's accident, according to a lawsuit he filed against his insurance agent for negligence.  Regardless of your net worth or the type of business you are in, maintaining reasonable types and amounts of insurance coverage is a critical part of any risk management strategy.  2.  Keep an Eye on Your Advisors.  Hogan is also suing a couple of his former attorneys for ringing up over $1 million in legal fees in connection with the fallout from his son's car accident, allegedly without telling him that his legal defense actually could have been provided per the terms of his existing insurance policies at no cost to him.  Professional athletes and entertainers are sometimes easy targets for being taken advantage of for a variety of reasons.  Regardless of the root cause of the problem, professionals cannot blindly delegate responsibility for their finances and business affairs to others, no matter how experienced, well-regarded, or well-meaning those advisors appear to be.  Trust, but verify, and never be hesitant to ask questions.  Once you start having suspicions about the people working for you, then it is generally time to make a change.    Closely Held Businesses and Business Start-Ups 2010-06-29T01:38:34+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/radio_station_hit_with_fcc_fine_resulting_from_contest/ http://www.ericperkinslaw.com/index.php/whats-new/post/radio_station_hit_with_fcc_fine_resulting_from_contest/ The FCC recently issued a $4,000 fine to a Boise, Idaho radio station for failing to properly describe terms and conditions of a contest conducted by the station.  Apparently a disgruntled listener or contestant filed a complaint alleging the contest—which awarded multiple prizes billed as the “Ultimate Garage” to one winner --had been fixed.  While the FCC did not find sufficient evidence to support that allegation, it did conclude the radio station had neglected to “fully and accurately disclose all material terms” associated with the contest as required by Section 73.1216 of FCC Rules. Contests and giveaways can be a great marketing tool for businesses of all sizes, but they need to structured and conducted in a manner that complies with applicable law.  Click here for more information:  http://www.ericperkinslaw.com/images/articles/A_Few_Tips_for_Conducting_Contests_and_Sweepstakes_Promotions.pdf Closely Held Businesses and Business Start-Ups 2010-05-17T12:58:33+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/perkins_to_discuss_business_start-up_issues_at_usta_virginia_tennis_worksho/ http://www.ericperkinslaw.com/index.php/whats-new/post/perkins_to_discuss_business_start-up_issues_at_usta_virginia_tennis_worksho/ Richmond business and nonprofit attorney Eric Perkins will speak at the USTA/Virginia Tennis workshop for USTA League Coordinators at Keswick Hall on Saturday, February 13, 2010.  Perkins, active in the tennis community for many years as a volunteer at the local and national levels, will lead a discussion on the nuts and bolts of forming both for-profit and nonprofit entities in the world of recreational tennis, touching upon business formation, corporate governance, and tax compliance issues.  Visit www.virginiatennis.com for details about the event. Closely Held Businesses and Business Start-Ups 2010-02-08T02:53:48+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/mixed_reviews_for_sba_arc_loan_program/ http://www.ericperkinslaw.com/index.php/whats-new/post/mixed_reviews_for_sba_arc_loan_program/      A little over six months after its June 2009 debut, the SBA America’s Recovery Capital (“ARC”) Loan program continues to get mixed reviews. On a positive note, over 45% ($142 million) of available funds have been distributed by over 1,000 lenders to nearly 4,400 borrowers.  On the downside, many other borrowers have found it difficult to qualify for these loans and to find participating lenders.  Further, the future of the program has been cast in doubt after Senator Olympia Snowe, an original architect of the ARC Loan program, introduced a bill late in 2009 that would repeal the program.      Regardless, the program remains open until either the remaining funds are exhausted (over $100 million remains available under the program) or September 30, 2010, whichever comes first. Closely Held Businesses and Business Start-Ups 2010-01-15T03:26:38+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/five_reasons_to_read_donald_dells_new_book_never_make_the_first_offer/ http://www.ericperkinslaw.com/index.php/whats-new/post/five_reasons_to_read_donald_dells_new_book_never_make_the_first_offer/ Donald Dell, a pioneer in the world of professional sports representation, shares his four decades of deal-making experience, compelling war stories, and humbling lessons learned representing some of the most influential athletes of our generation—from Jimmy Connors to Michael Jordan.  This book is a great read for any business executive or owner interested in negotiating strategies and tactics, and a must read for anyone interested in the sports industry (particularly professional tennis).  In particular, you will learn: 1.         The immeasurable value of a sense of humor in negotiating business transactions (especially a self-deprecating sense of humor). 2.         The “dirty” little secret of Dell and his then-client Jimmy Connors that arguably impacted the outcome of the 1983 U.S. Open men’s final. 3.         The importance of trust and authenticity in being a successful business person. 4.         Why litigation and “scorched earth” tactics rarely make sense from a business perspective. 5.         How it came to pass that a young Donald Dell got reamed out by Donald Rumsfeld (and the lessons learned from it).   Closely Held Businesses and Business Start-Ups 2009-10-10T02:34:07+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/virginia_business_owners_beware_of_corporate_maintenance_scams/ http://www.ericperkinslaw.com/index.php/whats-new/post/virginia_business_owners_beware_of_corporate_maintenance_scams/ A wave of corporate compliance scams has struck unsuspecting business owners across the country in recent years.  The scam is pretty straightforward.  An official-looking letter is sent to a business owner calling for payment in exchange for preparing what are described in a misleading fashion as “legally required” corporate forms.  Ominous warnings of the dire consequences of noncompliance are vividly described.  The letters are strategically designed to resemble forms issued by state agencies, presumably in the hope that recipients will falsely assume the letters originate from state government agencies and, therefore, pay the bogus fee. State agencies across the country are clamping down on these corporate maintenance schemes: http://www.sos.ca.gov/business/be/alert-misleading-solicitations.htm http://myfloridalegal.com/newsrel.nsf/newsreleases/979FC7C7092E085C85257371005EFFCD http://www.bbbsoutheastflorida.org/GIReport.aspx?NewsID=80 If you receive suspicious solicitations in the mail regarding registered agent or other corporate compliance services, consider doing the following before submitting any personal information or paying any money: Read the fine print. Conduct some basic due diligence on the company sending you the solicitation (a Google search will often provide a wealth of insightful information about the company soliciting your money). Call the Virginia State Corporation Commission or a business attorney to confirm state filing requirements and other corporate compliance questions. Closely Held Businesses and Business Start-Ups 2009-10-10T02:02:56+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/see_eric_perkins_featured_in_todays_richmond_times-dispatch/ http://www.ericperkinslaw.com/index.php/whats-new/post/see_eric_perkins_featured_in_todays_richmond_times-dispatch/ Eric Perkins is featured as a "Decision Maker" in today's Metro Business Section (page 11) of the Richmond Times-Dispatch.  Visit http://www2.timesdispatch.com/rtd/business/local/metrobusiness/article/DMAK24_20090821-212005/287558/ for an online version. Closely Held Businesses and Business Start-Ups 2009-08-24T19:43:26+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/see_eric_perkins_quoted_today/ http://www.ericperkinslaw.com/index.php/whats-new/post/see_eric_perkins_quoted_today/ in an article discussing the SBA's America's Recovery Capital (ARC) Loan Program.  Here's the link: http://www.richmondbizsense.com/2009/06/25/arc-to-the-rescue-probably-not/ Closely Held Businesses and Business Start-Ups 2009-06-25T12:04:34+00:00 http://www.ericperkinslaw.com/index.php/whats-new/post/debut_of_the_sbas_new_arc_loan_program--a_few_things_small_business_owners_/ http://www.ericperkinslaw.com/index.php/whats-new/post/debut_of_the_sbas_new_arc_loan_program--a_few_things_small_business_owners_/ After months of anticipation, the Small Business Administration last week unveiled its America's Recovery Capital ("ARC") Loan Program.  This new $255 million program is specifically designed to provide small businesses temporary financial relief from the current economic recession.  Here is a quick synopsis of the program: An ARC loan is a deferred-payment, interest-free loan to qualifying borrowers of up to $35,000.  ARC loans are 100% guaranteed by the SBA. There are no SBA or lender fees associated with ARC loans. While there are no interest charges to the borrower, the SBA will pay interest at Prime plus 2% to the lender. ARC loans will have a disbursement period of up to six months, followed by a 12-month deferral period, after which loan principal gets repaid over a term of five years. Those are the benefits of the program, but there are also some challenges, including: Only "viable" small businesses suffering "immediate financial hardship" are eligible.  For purposes of this program, the term "viable" means an established business (i.e., no start-ups) that can show profitability or positive cash flow in at least one of the past two years.  The term "immediate financial hardship" means that an applicant must show a detrimental change in financial condition such as declining sales, frozen credit lines, problems paying rent or payroll, among other benchmarks.  In other words, the business must be in some trouble, but not too much trouble.  There are restrictions on how the loan proceeds can be used. Business owners must act quickly.  This is a first-come, first-serve program and thousands of applications are expected in the coming weeks and months. Potential applicants may have difficulty finding a participating lender.  An informal poll of a handful of SBA lenders in the Richmond, VA area did not yield a tremendously zealous response from the lending community.  Some were opting not to participate at all, some were still analyzing the program, and some were going to offer the program, but only to existing customers.  The only lender I spoke with last week that planned to fully embrace the program to both existing clients and prospective customers was SunTrust Bank.  For additional information about the ARC Loan Program, visit www.sba.gov.  For legal assistance in connection with the ARC loan process, call Eric Perkins at (804) 205-5162 for a free initial consultation and flat fee quote.      Closely Held Businesses and Business Start-Ups 2009-06-21T02:04:46+00:00