Category: Law

Attention business owners!

Under the Federal Corporate Transparency Act of 2021, many businesses need to take action before January 1, 2025, and file Beneficial Ownership Information (BOI) to the U.S. Treasury Financial Crimes Enforcement Network (FinCEN). This new mandate is part of an initiative to combat financial crime.

Don’t risk non-compliance! If your business does not qualify for one of 23 exemptions, then you must file a report with the federal government. In addition, any changes to beneficial ownership of your business will necessitate filing updates no later than 30 days after such change.

Identifying who is a beneficial owner is critical for this filing. To do this, you need to determine who exercises “substantial control” and who owns at least 25 percent of your company’s interest. If your business was formed after January 1, 2024, additional reporting requirements may apply.

To help you navigate this process, Compass Law Partners is here for you. For the remainder of 2024, we are offering a discounted flat fee of $500 to analyze whether you need to file such a report and to handle the filing on your behalf.

Time is of the essence! Don’t delay—ensure your business is compliant with these new regulations and avoid potential penalties. Contact Compass Law Partners today!

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The State’s Default Plan: A Frightening Proposition
When you don’t make your own will or trust, the state’s plan dictates how your affairs are managed, including appointing a Personal Representative (PR) based on a default order of priority. This means that the person tasked with handling your estate could be someone you would never have chosen. Perhaps it’s a relative you don’t trust or someone you barely know…

Dividing Your Assets: The State’s Hand
Once the PR is appointed, the next step is dividing your assets. The state has a predetermined way of distributing your belongings among family members, which can be a far cry from your own wishes. Spooky, isn’t it? Without a will or trust, your personal possessions, financial accounts, and even sentimental heirlooms could end up in the hands of relatives you may not even want to inherit them.

The Cost of Serving as Personal Representative
To add another layer of fright, even if a responsible family member is chosen to be your PR, they may be required to purchase a bond before serving. This bond acts as a sort of insurance policy, ensuring they manage your estate responsibly. This extra step can be both financially complicated and burdensome during an already difficult time.

Underage Beneficiaries
If you have minor children, the lack of a will or trust becomes even more concerning. The options for underage beneficiaries inheriting property are severely limited. The state’s system may involve complex and expensive financial guardianship proceedings, further complicating your family’s grief and straining their resources.

No Safety Net for Orphans: A Court’s Decision
Perhaps the spookiest scenario of all? If there are no surviving parents for your minor children, their guardianship will be left up to the courts. This means a judge, who may not know your family or your wishes, will decide who will care for your kids. The thought of leaving such an important decision in the hands of the court is enough to send shivers down your spine.

Take Control Before It’s Too Late
The bottom line is clear: failing to create your own will or trust can leave you at the mercy of the state’s default plan—one that may not reflect your wishes, values, or the best interests of your loved ones. Don’t let the state decide your fate or that of your family. Take action now to establish your own estate plan, ensuring your voice is heard and your legacy is honored. After all, there’s nothing scarier than the unknown!

As we embrace the season of spooks and scares, let’s not forget to tackle the truly frightening aspects of life with proactive planning. Your family deserves it—and so do you.

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As a result of the Federal Corporate Transparency Act of 2021, certain companies must report Beneficial Ownership Information (BOI) to the U.S. Treasury Financial Crimes Enforcement Network (FinCEN) no later than January 1, 2025 [1]. In addition, any changes to BOI filings must be filed with FinCEN within 30 days of such change. This new requirement is part of the U.S. Government’s effort to go after bad actors seeking to hide gains through shell companies and other less than transparent ownership structures.

There are 23 exemptions to such filings, but if your business doesn’t qualify for one of them, then you must file a report. Compass Law Partners has assisted businesses in determining whether such a report must be filed and has experience filing such reports. Unfortunately, even with the exemptions, most small businesses will need to file a report and periodically update it.

Once a business determines whether or not it must file BOI reports, it must also determine who the beneficial owners of the company are for such filing. There are two qualifiers: (1) someone who exercises “substantial control”; and (2) someone who owns at least 25 percent of the ownership interest of the company. In addition, for businesses formed after January 1, 2024, there are additional reporting requirements.

For the months of September and October 2024, Compass Law Partners is offering clients a discounted flat fee of $500 to conduct the analysis of whether you need to file such report to the U.S. Treasury’s FinCEN; such fee also includes filing the report on your behalf.

In honor of the Paris 2024 Olympic Games, we are here to help you go for the gold!

At Compass Law Partners, we believe in helping businesses reach new heights through expert legal guidance tailored to your unique needs. Our firm excels in providing comprehensive support in advising and drafting essential business formation documents. Whether you’re starting a new venture or refining an existing entity, we’re here to ensure your business is primed for success from the starting block.

Expertise in Business Formation

Forming a business requires the precision of an Olympic athlete. We specialize in drafting critical formation documents, including Articles of Incorporation, Articles of Organization, Organizing Resolutions, and By-Laws. These foundational documents create the blueprint for your business, establishing governance structures, defining shareholder or member rights and responsibilities, and setting operational guidelines.

Tailored Legal Solutions

Just as every athlete has a unique training regimen, every business requires personalized legal strategies. At Compass Law Partners, we take a personalized approach to each client, offering strategic advice that aligns with your specific goals and vision. Whether you’re a nimble startup or a seasoned contender in the corporate arena, our aim is to equip you with the legal tools and insights needed to navigate business formation effectively.

Comprehensive Support

Our commitment to your success extends beyond the initial formation phase. We provide a full spectrum of services to support your business throughout its lifecycle:

• Drafting Operating/Partnership/Shareholder Buy-Sell Agreements: Structuring agreements that define ownership transitions and ensure continuity during buyouts, departures, or changes in partnership.
• Transactional Guidance: Advising on mergers, acquisitions, partnerships, and joint ventures to propel your business forward.

Partnering for Long-Term Success

At Compass Law Partners, we’re dedicated to forging lasting partnerships built on trust, integrity, and a shared commitment to excellence. We’re here to serve as your trusted legal advisor, providing steadfast support and guidance as your business evolves and reaches new milestones.

Reach Out Today

Join us on this journey to legal victory. Contact Compass Law Partners today to discover how we can assist with your business formation needs.

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As July arrives and temperatures soar, families across the country are eagerly finalizing their summer vacation plans. Whether it’s a beach retreat, a mountain getaway, or a cultural exploration, July is prime time for families to escape and create lasting memories together.

Amidst the excitement of packing swimsuits and sunscreen, there’s a crucial detail often overlooked: estate planning. While not typically part of the vacation checklist, it’s a critical consideration for any family hitting the road – have your affairs in order ensuring your loved ones are protected in case the unexpected occurs.

Estate planning isn’t just about preparing for the worst—it’s about peace of mind and ensuring your family’s future is secure. Without a plan in place, your loved ones could face unnecessary complications and legal challenges during an already difficult time.

Key documents in an estate plan include a Last Will and Testament, a Financial Power of Attorney, and an Advance Medical Directive. These documents outline your wishes regarding your assets, designate someone to manage your financial affairs if you’re unable to, and specify your preferences for medical treatment.

While estate planning may seem daunting, the compassionate attorneys at Compass Law Partners are here to assist you every step of the way. We understand the importance of creating a personalized plan that reflects your unique circumstances and protects your family’s well-being.

So, as you eagerly anticipate your July vacation and the adventures that await, take a moment to prioritize your estate plan. It’s a proactive step that ensures your loved ones are cared for, allowing you to relax and enjoy your vacation with true peace of mind. Contact Compass Law Partners today to begin planning and safeguard your family’s future throughout all your summer adventures.

Happy travels!

The gulf between deciding to start a business and doing so is broad and twisted. Among such responsibilities as building a website and hiring employees, legal hurdles can derail your efforts. Even the most detailed business plans can’t replace your leadership while you juggle legal obligations. Nevertheless, an experienced business law attorney can help you construct an inviolable business structure, draft iron-clad contracts, and navigate complex regulations.

Businesses of all sizes seeking reliable legal counsel can turn to Compass Law. Our team is licensed to practice in both Maryland and Washington, DC. Our attorneys (well-versed in business law) have a thorough knowledge of helping clients’ companies get off the ground and navigate the legal landscape. Call (240) 560-3030 to learn more about hiring our lawyers for your business.

Below, we outline 5 ways a business attorney can help your young organization:

1. Contract Drafting and Review 

As the backbone of your business dealings, contracts must be straightforward, comprehensive, and airtight to protect your interests. Business lawyers possess the expertise to translate your agreements into detailed legal language. They can anticipate potential issues and include clauses to mitigate risk against you and your assets.

Furthermore, lawyers can identify unfavorable terms presented by other parties, negotiate on your behalf, and ensure outside contracts align with your business goals. Examples of the contracts business lawyers specialize in include:

• Client contracts
• Vendor contracts
• Employment contracts
• Leases
• Mergers and acquisitions

2. Employment Law  

Employee and labor laws are a maze of federal, state, and local regulations. Staying compliant with the labyrinth of expectations (in addition to all their other tasks) can feel overwhelming for new business owners. Yet an experienced business attorney can be your guide through these hoops.

They can ensure your hiring practices are fair and non-discriminatory, that your employee handbook is clear, and that you adhere to minimum wage and overtime rules. Proactively ensuring compliance through your lawyer’s expertise can prevent disgruntled employees and costly lawsuits.

3. Business Formation 

Choosing the right business entity for your company is crucial because it comes with tax and liability implications. Based on your specific needs and goals, a lawyer can educate you on the options and guide you toward the best structure. Examples of common business entities include:

• Sole Proprietorship
• Partnerships
• Limited Liability Company (LLC)
• Corporation

You can lay the proper groundwork for your organization by involving a business legal professional from the start.

4. Intellectual Property

In today’s economy, your intellectual property (ideas, inventions, creative works, and more) is among your most valuable assets. Partnering with a business lawyer is essential for safeguarding these unique creations. With the assistance of a legal expert, you can register trademarks and copyrights, navigate the patent process, and keep trade secrets protected. Moreover, your lawyer can take legal action to stop them and recover damages if a competitor infringes on your intellectual property.

5. Regulatory Compliance 

For new business owners, navigating regulatory compliance can be daunting. However, in the same way they assist with employment laws, business lawyers can help decipher complex federal, state, and local regulations that apply to your industry. They’ll ensure your licenses and permits are up-to-date and keep you up-to-date on changing standards.

Furthermore, a lawyer can advise you on data protection, environmental regulations, and proper advertising practices to minimize the chances of fines or legal action. Again, you can confidently run your business on the right side of the law by ensuring compliance from the outset.

Even if your organization is small or just beginning operations, consulting a business law attorney is a wise investment. Their expertise can help you avoid legal pitfalls and set your business up for long-term success. Learn more about how our business lawyers can aid your organization by calling (240) 560-3030 today!