Limited Liability Company FAQs

What is a limited liability company? A limited liability company is a hybrid legal entity, with elements of the structure of both corporations and of partnerships. Its organization is similar to a corporation, but it enjoys many of the operational and tax benefits of partnerships.

While the limited liability company is a relatively new type of legal entity (first recognized in the U.S. in 1977), all 50 states and the District of Columbia have now passed legislation authorizing the creation of LLC’s.

Employment Law FAQs

Do all employees need to have Employment Agreements? It is not a legal requirement that employees have written agreements with their employers spelling out the terms of their employment. However, it can often be sound business practice, both for employer and employee, to have a written Employment Agreement, spelling out the terms and conditions of employment.

What is a Standstill Agreement?

A Standstill Agreement is an agreement between two business entities that are contemplating entering into a transaction together and desiring to prevent one another from negotiating a similar transaction with a third party during the period of negotiations.  For example, in negotiations for a merger or acquisition, the target and the purchaser may enter into an agreement where they each agree… Read More »

What is a Joint Venture Agreement?

A Joint Venture Agreement allows two or more entities to combine to do business without the formality and commitment involved in forming a partnership or other similar entity. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. The venture can be for one specific project, or… Read More »

What is a Debt Guarantee?

A Debt Guarantee provides for a guarantor for the repayment of a debt. This guarantor basically acts as a co-signer for the borrower’s obligations to a specific lender. The guarantor will agree that if any of the borrower’s payments are late or not paid, they will make the payments. The guarantor may also agree that the guarantee may be enforced without having to first… Read More »

What is a Novation Agreement?

A Novation Agreement is an agreement between a new debtor corporation, an older debtor corporation and a creditor whereby the new debtor agrees to pay the debts that the old debtor owes to the creditor. In return, the creditor releases the old debtor from any further obligations to it. Sometimes a parent corporation will enter into a novation agreement when… Read More »

What is a Name Affidavit?

A Name Affidavit is a form that allows aperson to give a declaration that they are the same person as another name. This might be necessary in the event the person may have been know by or used different names in the past. Sometimes they are given under oath while other times they are given before a notary public.… Read More »

What is a General Affidavit?

General Affidavit forms are sometimes known as Declarations under Oath. They are used to make certain statements in written form under oath. Some are in the form of a “General Affidavit under Oath” while others are “General Affidavit before Notary”. You can find various examples of General Affidavit forms here.