Attorneys at Law
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Be informed.

Is a 1031 Exchange a Smart Choice for Real Estate Investing?

A 1031 exchange, or like-kind exchange as it is also called, can make it possible for you to defer capital gains taxes on profits from selling a business property or an investment property. The Internal Revenue Service provides extensive details on the rules of a 1031 exchange, which you must be aware of if you are considering selling a property and hoping to do a 1031 exchange to avoid paying capital gains taxes.

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Key Differences Between S-Corps and C-Corps

While both C-corps and S-corps can allow you protection from liability, the other advantages provided by each corporate structure can differ. For example, if you plan to run a small family company and tax flexibility is your primary goal, an S-corp may be a better solution. If, on the other hand, you hope to grow your organization very large and want different types of owners to be able to have an ownership stake, then a C-corp may be a better bet under the circumstances.

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Business LawScott Rothman
How Will Your Business Be Taxed on Profits?

There are a few primary ways that a business could be taxed on profits. One possible option is that your company could have to pay taxes on its profits. This is the taxation method for C-corporations. The problem with this method of taxation is that it could end up with company profits being taxed twice. The company may have to pay taxes, and the owners of shares of the company could also be forced to pay taxes as well.  This can cost you a lot of money, especially if you have a closely held corporation.

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Business LawScott Rothman
When do Landlords Have to Give Back Security Deposits?

According to the Pennsylvania Attorney General, "a security deposit is money which actually belongs to the tenant, but is held by the landlord for protection against damages or unpaid rent."  Landlords are required to give back security deposits as long as a tenant has not caused undue damage to a property. Normal wear and tear on an apartment is not cause for keeping a security deposit, and landlords will need to return the money that is owed to a tenant if a tenant has not caused substantial damage to the property in question.

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Real EstateScott Rothman
Should You Co-Sign for Company Loans for Your New Business?

When you are financing a business venture, you need to consider possible risk that you are taking on through the method of financing that you choose. If you operate as a sole proprietorship or as a partnership, you are going to be personally responsible for all of the debts that the business takes on. This means that if the company goes into debt, you go into debt. If the company goes bankrupt, you will also go bankrupt and your personal assets will be at substantial risk.

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Business LawScott Rothman
What is the Parol Evidence Rule in Contract Interpretation?

One of the issues that can come up when a breach of contract accusation is made or when parties disagree on contract terms is how to interpret a contract and what the agreement terms are. This is especially important if there are any type of ambiguities or irregularities and the parties disagree on what the terms of the agreement mean. There are rules of contract interpretation that apply in these circumstances, including a rule called the parole evidence rule.

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Can an Employer Enforce a Non-Compete Agreement?

While non-competes are common, they are also difficult to enforce in many circumstances. Non-compete agreements can sometimes be overly restrictive and can impede a person's ability to make a living. This type of agreement is not going to be enforced because it is considered bad public policy and an unlawful restraint on trade to make it effectively impossible for someone to earn a living in his or her chosen profession.

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Due Diligence Checklist for Commercial Real Estate Developers

When buying land for commercial real estate development, it is your responsibility to do your due diligence to make sure that the land is going to be a viable place for your proposed development project. While the sellers of land must make certain disclosures to you, the doctrine of caveat emptor, or buyer beware, also applies in the field of commercial real estate. This means it is up to you to do the research that you need into all aspects of the land purchase so you can make wise investments.

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Real EstateScott Rothman
How to Prove Age Discrimination

Age discrimination is unlawful under the federal Age Discrimination in Employment Act. Employers are not permitted to discriminate against older employees in any of the terms or conditions of employment. This means employers cannot refuse to hire you, refuse to promote you, or force you to retire or take a demotion as a result of your age. Employers also cannot provide different benefits or job perks to workers based on their age.

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What if a Tenant Challenges Eviction?

If a tenant contests an eviction, you will need to go to court in order to get an order of eviction for the tenant who you want to force to leave your rental property. In many cases, tenants will not contest the eviction and the court will simply grant the order of eviction. When this happens, your only challenge will be to enforce that order.  In other circumstances, however, the tenant might challenge the legality of the eviction and you will need to prove you have justification for evicting the tenant.

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What Compensation is Available in a Quid Pro Quo Harassment Case?

Quid pro quo harassment occurs in situations where any of the terms and conditions of your job are conditioned upon agreeing to sexual favors or sexual behaviors.  In some cases, it is easy to provide quid pro quo harassment occurred if an overt offer of job benefits or job advancement is made. In other circumstances, bosses or managers may be more subtle in their suggestions that sexual behavior can help you to advance.

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Employment LawScott Rothman
Can a Subcontractor Put a Mechanics Lien on Property?

Liens are claims on property for nonpayment. When a lien is placed on a property, the owner of that property can be affected in profound ways. A bank will not give a mortgage to a property with a lien on it, for example. This can be a problem if you are paying for a property to be developed with a construction loan and you need to convert that loan to a permanent one at the end of the project. If a mechanic's lien is put on the property, you may not be able to get your loan to repay the construction loan when construction is complete.

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What Exactly is a Breach of Contract?

A contract creates private law, and the parties to the agreement must abide by all of its terms. You are legally obligated to fulfill the provisions of a contract, just as you are obliged to obey any law which is passed by the government. If you fail to fulfill your obligations, the other party to the contract can use the court system to obtain a legal remedy, including compensation for damages.

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Guide to Resolving Shareholder Disputes

Unfortunately, shareholder disputes can arise frequently in closely held companies, as well as in larger organizations.  When a dispute arises, the future success of the organization could be affected because the disagreement could hurt the company's brand, make it impossible for co-owners to work together, and result in a delay in the making of important decisions. 

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