Investing in non-traditional assets, unlike stocks, bonds, treasuries, and index funds that are readily marketable, creates substantial and new risks. Investors looking into crypto, fine art, rare wine and spirits, classic automobiles, and other non-traditional opportunities need to be wary. Investment requires knowledge, documentation, vetted sources, and trusted advisors to evaluate and profit from these unique assets. While claimed returns are higher, so are your risks. For you or your estate to profit from investing in non-traditional assets you should consult your legal counsel, tax advisor, and an asset category expert for acquisition, valuation, protection, disposition, inheritance, and tax advice.
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Brooks, Tarulis & Tibble, LLC
We are a general practice firm, providing legal services in corporate law, commercial transactions, real estate, contracts, estate planning, business litigation, local government representation, divorce, privacy protection, personal injury litigation, and a wide range of other legal areas. Our attorneys also serve as general counsel to many families, businesses and organizations.
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Commercial Lease Traps
Commercial leases are complex and lengthy documents prepared by and generally favoring the landlord. While the most obvious terms are the focus of negotiation, like rent, length, and build-out credit, many of the other provisions that are often overlooked as “boiler plate,” can be traps for a tenant, substantially reducing the value of the lease and eroding profits during its term.
Some of these hidden tenant traps include:
- Exclusivity. Can the landlord lease other space in the property to a competitor?
- Property Tax Reassessment. What is your exposure to increasing property tax assessments and can you cap it?
- Common Area
Mental Health in the Workplace
The too frequent reports of workplace violence serve as a warning for employers to be concerned about workplace mental health. To protect their business and employees, owners should consider:
- Creating a supportive workplace culture that normalizes mental health discussions.
- Providing mental health resources.
- Establishing policies that create a healthy and safe work environment.
- Providing training and education for management.
- Establishing a flexible work environment.
- Ensuring employees know their value.
- Evaluating and adapting programs to support employees.
Should you have any questions or concerns, please contact us.
This Bulletin is designed to provide our friends and clients with information regarding the…
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Buying/Selling Intellectual Property
An increasingly valuable asset for many businesses is its intellectual property. Intellectual property can include trade secrets, patents, trademarks, copyrights, codes, formulas, and licenses for and to use all of the foregoing. Unlike tangible assets that you can see, the use, transfer, disclosure, licensing, and protection of these assets is much more complex and requires professional expertise.
Some considerations relating to intellectual property transactions include:
- Valuation. Auctions, appraisals, consultants, and brokers can help value the asset.
- Due Diligence. Ownership authenticity and transferability should be secured.
- Licensing. Investigation into the rights, use, exclusivity, and duration is required.
- Non-Disclosure Agreements. Appropriate protections
Commercial Real Estate Exchanges
Typical 1031 exchanges require the seller of commercial real estate to timely acquire another commercial real estate property in order to defer any tax liability on the sale, making this tax deferring device less attractive to owners wishing to eliminate the obligation of managing real estate or focusing their investment on one piece of commercial real estate. With the IRS approving the use of a Delaware Statutory Trust (DST) as replacement property for 1031 exchanges, owners can acquire institutional quality property, reduce management obligations, minimize liability, increase liquidity, and ease estate planning. A DST is professionally managed real estate trust…
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CAN-SPAM Act
Just like the federal protection of consumers from robocalls, violations of the no call list, and unwanted faxes, the CAN-SPAM Act is designed to protect your email from unwanted or fraudulent communications and assesses penalties on those who abuse email. If you are using email commercially or for marketing, some of the rules to follow to avoid civil suits and penalties include:
If you have any concerns about your email marketing…
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Employee Pensions
Like programs in many other states, the Illinois Secure Choice Program mandates all employers to register with the Illinois Secure Choice Program that provides a retirement savings plan to employees without one. Employers must register and participate or claim an exemption, provide and update an employee roster, inform employees of the program, and for employees that do not opt out, deduct a percentage of their compensation and remit it to the Program Administrator. The Illinois plan acts like an IRA with restrictions and limitations for employees that do not opt-out.
Some key facts regarding the Illinois Secure Choice include:
- Obligated
Liability Waivers and Limitations
While government entities like park districts and schools have statutory immunities, waivers, and limitations applicable to injuries occurring on their facilities and at their functions, the increasing number of private playgrounds, play areas, gyms, and party locations do not. Besides proper insurance and warning signs, liability waivers can be used to prevent or limit your business’ liability for injuries, but they must comply with the myriad of laws that regulate them for each type of business in order to be enforceable. Be sure that your contracts and other forms comply with all laws and regulations applicable to your business and…
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What to Do When Served with a Suit
Most lawsuits begin with the personal service by a Sheriff or by private process server handing to each defendant (the party being sued) or a member of the defendant’s household a summons (notice to appear in court) and a complaint (document alleging wrongful conduct and seeking recovery), requiring appropriate action by the defendant or risking entry of a default judgment (judgment entered without a trial).
Some dos and don’ts to remember when served with a lawsuit include:
- Don’t panic. Your lawyer, accountant, and insurance carrier have been through this and are there to help.
- Do read. Be sure you are
Protecting Your Right to Arbitrate
Many businesses include an arbitration provision in their contracts to enhance speed, ensure efficiency, and provide consistency in resolving business disputes. While most courts generally favor arbitration if agreed by the parties, a recent court ruled that the business filing a motion to dismiss a lawsuit before filing its motion to compel arbitration waived the contractual right to arbitrate the dispute. Be careful how you or your lawyer responds to a lawsuit to avoid waiving your contractual right to arbitrate the dispute.
If you have any questions or if we can assist you, please contact us.
This Bulletin is designed…
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Home Co-Ownership
Recent home sales show that 15% of homes were purchased by non-married, non-related adults, and the trend is increasing. For unmarried co-owners, even inter-generational relatives, a written agreement is highly recommended that address the following questions:
- Purpose of Co-Ownership. Is it for residence, investment, financial assistance, inheritance, poor credit, or caretaking?
- Type of Co-Ownership. Tenants in common, a trust, or a limited liability entity?
- Expenses Sharing. How will expenses be paid and contributions be valued to ensure mortgage, utilities, HOA fees, and the like are equally addressed?
- Acquisition. Will co-owners contribute equally to the purchase price?
- Improvements. How will maintenance,
Employee Non-Compete and Non-Solicitation Agreements
Illinois and many other states severely restrict the use and enforcement of non-competition and non-solicitation contracts and provisions relating to employees and former employees. The Federal Trade Commission also proposed rules to ban all existing and future contract provisions relating to similar restrictions on former employees. Patent, copyright, and other Federal and State protections for trade secrets and your confidential and proprietary information of a competitive nature remain. In light of these changes, each business should review any existing employee non-competition and non-solicitation agreements to ensure legal compliance.
If we can assist you in adapting to this change or addressing…
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Employment Law Checkup
Every year new federal, state, and local employment laws are enacted and existing ones updated. While the list from 2025 is substantial, and often local or industry specific, some of the major employment issues to be aware of include:
- Compensation Transparency. Wage and salary information must be provided to applicants as well as comparable compensation information to requesting employees.
- Paid Time-Off. Paid leave may be required and policies for vacation time or PTO must be clear.
- Protected Categories. Numerous categories of employees are protected from discrimination or unfair treatment, and employers must provide reasonable accommodations for many of their situations.
Tax Treatment for Your Limited Liability Company
Limited Liability Companies may be treated for tax purposes in a number of ways. To be taxed as an S Corporation under the IRS Code, a new LLC and all of its members must sign and file Form 2553 with the IRS within sixty (60) days of when it starts business, acquires assets, or has members. There are provisions for delayed filings and for filings by existing LLCs. This is a decision best made with the advice of your tax professional.
As the election of tax treatment for your LLC can have financial consequences, please consult your tax advisor at…
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Preserving a Family-Owned Business
A business you create with or for your family can be a legacy for generations to follow. But preserving this legacy in light of an expanding family and the addition of new generations takes planning and sometimes difficult decisions to avoid its breakup and family strife.
Some of the steps you can take to avoid or reduce the impact of family growth and strife on the family business include:
- Corporate Governance. Maintain the multi-tier structure of Owner – Director- Officer- Employee or Member- Manager- Employee in the business documents so each family member involved in the business knows their rights,
Business Interruption Claims
Hurricanes, floods, and other extreme weather conditions can cause substantial damage to businesses and their property. If you had property damage and business interruption insurance for such situations, both usually sold in commercial insurance policies, you still have work ahead of you to submit your claim and maximize your recovery.
Some rules for preparing business loss claims include:
- Thoroughly examining and documenting all physical damage.
- Assembling a team, including accounting, legal, insurance, and construction, with a single team leader.
- Knowing your policy and tailoring the claim to it, including the forms of coverage provided, covered locations, covered causes of loss,
