Leasing commercial office space often involves a unique set of complexities and elements. Today’s post will boil these complexities and elements down to a very basic level. The goal is to provide a simple guide to assist startups in finding the ideal work space, under reasonable terms.
Typical Pricing for Commercial Office Spaces
Generally, commercial office space is leased on a “dollars per square foot per year” basis. For example, you may see lease pricing in terms such as $15/foot; 3,000 square feet. Under this scenario, the lease would be $45,000 per year, paid off in monthly installments of $3,750.… Read the rest
A Buy Sell Agreement is a legal contract between the owner(s) of a business and the entity, to purchase and sell interests in the business at a pre-determined price if certain future events occur (e.g. death, disability, outside party purchase offer, or termination of employment). The Buy Sell Agreement can help ensure a smooth transition for the entity, remaining owners, and departing owners of a business.
Benefiting the Entity
There are a number of reasons why you may want to have a Buy Sell Agreement drafted for your business. The… Read the rest
As is the case with just about every provision in a limited liability company (LLC) operating agreement, the rules are flexible in regards to transferability of membership interests and admission of new members. This latest post in our series on LLC operating agreements details the default rules and common iterations of provisions related to transferability of member interests, the right of first refusal, and admission of a new member.
Transferring Your LLC Interest
Most LLC statutes distinguish between membership interests and member rights. The most important difference between… Read the rest
SEC Cracks Down on Sales of Private Securities
The Securities and Exchange Commission has filed civil charges against three brokerage firms, Felix Investments, EB Financial, and SharesPost, that trade shares of privately held technology securities. According to the SEC, fund managers at Felix and EB Financial misled investors and took undisclosed fees and commissions. SharesPost, an online exchange for private shares, reportedly brokered transactions and failed to register as a broker-dealer. EB Financial settled for about $310,000, and SharesPost and its founder will… Read the rest
In December 2011, the United States Department of Labor announced a new plan that requires federal contractors and subcontractors to have disabled workers comprise a minimum of seven percent of their work force. The public comments period for this proposal expired on February 21, 2012, and the Office of Federal Contract Compliance Programs (OFCCP) is reviewing public reaction. Although the department says it would not be an explicit requirement, companies that do not meet this target… Read the rest
Legislation creating social purpose corporations has passed both the Senate and the House, and is expected to be signed by the Governor this month.
In January, we wrote about bills in the Washington legislature that would create of a new corporate form for Washington businesses–the social purpose corporation. In February, the House passed HB 2239, a bill creating social purpose corporations, by a margin of 62-31. And in early March the Senate passed its version of the bill, SB 6230, by a margin of 34-14. Governor Gregoire is expected to sign the… Read the rest
There’s a common phrase in the business world; “acting on behalf of” seems to find it’s way into a number of business documents and legal contracts. What does it really mean to be acting on behalf of? Who’s liable for what in these situations? Today’s post will detail some of the basics behind agency law and some of the principles that determine liability when you act on behalf of another person or business.
Determining the Agency Relationship
The term “agency” refers to a legal relationship between two parties, the agent and the principal.… Read the rest