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Arbitration stock

Arbitration Clauses

An arbitration clause is a section of a contract that deals with the parties’ rights in the event of a legal dispute. Arbitration is an alternative to litigation, in which disputes are settled out of court with an arbitrator, a neutral third party who makes a binding decision. Arbitration clauses allow the parties to agree…

Contractual Consideration Stock

Contractual Consideration

One of the necessary elements to create an enforceable contract is consideration, which is based on the concept of a “bargained for exchange.” This means that both parties to the contract are getting something of value in exchange for giving something of value. Consideration is not always monetary. It can be anything of value, such…

Elements of an enforceable comtract

Elements of an Enforceable Contract

Whether you are purchasing a car from a dealership, or a vase from someone on Facebook Marketplace, all contracts have elements that must be met to be legally enforceable. A contract is a set of legally enforceable promises, entered by two or more parties, to make their dealings predictable and to prevent risk. For a…

Operating Agreements

Operating Agreements for LLCs

With all business entities, there are certain documents that need to be drafted at the time the entity is formed. In a previous article, we discussed the importance of a shareholder agreement, which owners of a corporation, known as shareholders, should enter into at the time the corporation is formed. When forming a limited liability…

FEIN stock

Federal Employment Identification Number

When forming a new business entity, there are several tasks that must be performed prior to operating the ne w entity. One of those tasks is applying for and obtaining a Federal Employment Identification Number (“FEIN”) for the new business. FEINs for businesses are analogous to social security numbers for individuals. FEINs are unique nine-digit…

Agreements

Shareholder Agreements: Oral vs. Written

When forming a corporation, the owners, known as shareholders, should enter into a shareholder agreement that clarifies their rights and obligations as shareholders. A written shareholder agreement should make the terms of the agreement clear for the resolution of any future issues. While generally disfavored, upon proving several factors, Illinois courts may enforce oral shareholder…

Biz Entity Formation

Business Entity Formation

When you start a new business, one of the first decisions is the type of entity.  Most small or medium sized businesses are limited liability companies (“LLC”) or sub-chapter S corporations.  Both are designed to limit the liability of their owners.  An LLC is owned by members who may manage the company directly or delegate…

Pro Exempt

FLSA Overtime Exemptions: Professional Exemption

We previously discussed the Fair Labor Standards Act’s (“FLSA”) requirement for overtime compensation and the potential applicability of multiple exemptions.  One of the FLSA exemptions is the professional exemption.  There are two types of exempt professional employees: learned professionals and creative professionals. To determine whether an employee qualifies for the learned professional exemption, a detailed…

Administrative Exempt

FLSA Overtime Exemptions: Administrative Exemption

We previously discussed the Fair Labor Standards Act’s (“FLSA”) requirement for overtime compensation and the potential applicability of multiple exemptions. One of the exemptions is the administrative exemption. Neither job title nor payment of wages via a set salary are sufficient to qualify an employee for the administrative exemption. Rather, a detailed factual analysis must…

Executive exemption stock

FLSA Overtime Exemptions: Executive Exemption

We previously discussed the Fair Labor Standards Act’s (“FLSA”) requirement for employers to provide their employees with overtime compensation. We also mentioned that the FLSA provides multiple exemptions for overtime compensation. While there are several exemptions that may apply, today we will be focusing on the executive exemption. Neither job title nor payment of wages…