Manufacturing delays, transportation shortages and overall supply chain issues caused problems for many businesses from manufacturing to retail. These situations outside of your control can also result in further problems for your business if you fail to supply, provide or have in inventory sufficient products for your customers. There are steps you can take to avoid, limit or minimize claims against you in these situations.

• Review any and all contract documents to assess your potential exposure and the obligations others owe to you if these problems arise.
• Redraft or amend your contract documents to limit your exposure in the

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Continue Reading Supply Chain and Related Issues

When the owner or owners of a closely held small business decide its time to sell or are approached by a potential buyer, the first order of business should be determining the business’ value or the value of the selling owners’ interest. Innumerable factors are considered in determining the value of a small business, and appropriate professional advice from your accountant, lawyer, business valuator, appraiser, tax adviser, business broker, industry experts and other consultants should not be overlooked. In addition to the book, replacement and market values of your business, other factors to consider include:

• Legal Constraints. Corporate bylaws, and

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Continue Reading Valuing a Small Business for Sale

To many people estate planning is merely preparing a will to tell your executor what to do with what you own when you die. But, estate planning is more than just drafting a will. It includes tax efficiencies, wealth preservation, asset protection, efficient asset ownership, retirement planning and business succession planning.
Estate planning can include:

• Will.  Appoints and directs your executor what to do with your property after your death.
• Trust.  Allows you and your successor trustee to handle your assets in private.
• Special Needs Trusts.  Provides for a disabled person without loss of government aid.
• Healthcare Power of Attorney. 

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Continue Reading Estate Planning is Tax Efficiency and Wealth Management

Each business, or at least its ownership, has a life cycle and particularly with multiple owners it is important to consider at the business’ inception how the business may end or an owner leave. While the law provides a mechanism to end a business or one’s ownership, owners agreeing to some sort of buy/sell arrangement is preferred. Some of the factors to consider in drafting a buy/sell agreement include:

• Valuation. Any agreement should include a method or formula to value the business at the time of the sale that may change over time and contain discounts or reductions.
• Situation. The

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Continue Reading Buy/Sell Agreements for Small Businesses

The law legalizing recreational cannabis also provided for the expungement (removal) of all court records regarding various prior cannabis arrests, citations and convictions. While each county’s States Attorney was charged with doing the expungements, few did. The Illinois Supreme Court just released forms for do it yourself cannabis record expungement: www.illinoislawyernow.com/2021/11/illinois-supreme-court-releases-cannabis-expungement-court-forms
If you have any questions, or if we can help you erase any prior criminal records regarding cannabis or other matters, please contact us.
info@NapervilleLaw.com
This Bulletin is designed to provide our friends and clients with information regarding the various subject matters covered, it is not designed to take…
Continue Reading Cannabis Expungement

As an increasing number of seniors opt to remain in their homes with the assistance of non-family caregivers, there is an increasing risk that they could be victimized by an unscrupulous caregiver. Even if retained from a reputable source, background checked, highly referred and closely supervised, the family could be surprised to learn a caregiver improperly persuaded a relative to make a substantial gift or bequest to the caretaker or his/her family. Since 2014, the Illinois Probate Act provides that transfers of over $20,000 to a caregiver that is timely challenged by heirs is presumed to be void, putting the…
Continue Reading Caregivers Concerns

Illinois law mandates all employers to annually provide sexual harassment training to each of its Illinois employees. While there are many consultants and programs an employer can hire or purchase to fulfil this legal requirement, the state also provides a free presentation. The requirements for the training can be found at: www2.illinois.gov/dhr/Training/Pages/Minimum-Training-Standards-for-All-Employers.aspx  and the state authorized program at: www2.illinois.gov/dhr/Training/Pages/State-of-Illinois-Sexual-Harassment-Prevention-Training-Model.aspx.
If you have any questions or problems, please contact us.
info@NapervilleLaw.com
This Bulletin is designed to provide our friends and clients with information regarding the various subject matters covered, it is not designed to take place of legal, accounting,…
Continue Reading Illinois Employee Sexual Harassment Training

Your business supported you and your family, and when it’s time to retire, proper prior planning can enable it to also support your retirement. Successful business succession planning should begin well before you are ready to retire in order to maximize value for you and your family. More importantly, having and implementing a business succession plan can help your family and co-owners in the event of an unexpected disaster, like your death or disability.
Some of the questions to answer when considering business succession include:

• Should the business stay in the family?
• Should the transfer occur before death?
• What are/will

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Continue Reading Business Succession

Any employer that uses or is considering using non-competition or non-solicitation agreements with its employers needs to review them prior to January 1, 2022, when a new law takes effect that can not only negate such agreements, but expose employers to damages, attorney’s fees and investigation by and fines from the Illinois Attorney General. Basically, after January 1st, new non-competition agreements will be unenforceable against employees earning less than $75,000.00, and $45,000.00 for non-solicitation agreements. Employees must be given 14 days to consider signing, real consideration must be paid (such as two years of employment), and threats to or enforcement…
Continue Reading Employee Non-Compete or Non-Solicitation Agreements

Whether it’s a corporation, company, limited liability entity, limited partnership, partnership or business trust, business owners are encouraged to form and use some type of business entity to limit their personal liability exposure, creating a firewall to prevent personally responsible for their business’ debts. Some of the events that enable a business’ creditor to breach this protection include:

• Disregarding the Entity. If you fail to honor the integrity of the entity, creditors can disregard it and reach your personal assets.
• Fraud. If the entity is a sham, used to avoid creditors or engages in illegal or improper conduct, the entity

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Continue Reading Guaranties, Non-Recourse Debt and Limited Liability

The Illinois Wage Payment Act was recently amended, imposing more drastic remedies against employers that do not timely pay employee wages and benefits both during and after employment. Employers who withhold any compensation, vacation/comp time or other benefits from terminated employees past the next payroll date may be subject to penalties including 5% monthly interest, attorney’s fees and costs. As the Illinois Department of Employment Security may also enforce these requirements, former employees may not even have to hire an attorney.
Employers in Illinois are subject to a web of federal, state and local laws, rules, regulations and ordinances impacting…
Continue Reading Warning to Employers