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The Drones are coming!

With the holidays upon us, more people than ever will be receiving the newest drone models as novel and exciting gifts.  The U.S. Department of Transportation expects over 1 million drones to be sold this holiday season.  But what exactly is a drone, you ask?  A drone is an unmanned aircraft commonly referred to as a UAV.  The flight of drones may be controlled either autonomously by onboard computers or by the remote control of a pilot on the ground or in another vehicle.  The Federal Aviation Administration (FAA) currently lists three categories of drones: public, civil, and recreational.

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Choosing a Business Entity—Part Two

By  Lindsay A. Getman, Summer Associate

In part one of this series, we provided information on the benefits and disadvantages of sole proprietorships and partnerships as business entities. Part two of this series will discuss corporations and limited liability companies, two additional entity types that a business owner in New York may choose. These types of entity formations can be a costly and burdensome process for a business owner, but formalizing the business structure in this way can also provide numerous benefits and protections. In New York State, business owners may choose from the C corporation, the S corporation and the limited liability company, or LLC.

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Choosing a Business Entity

By Lindsay A. Getman, Summer Associate

When forming a new business and deciding on the entity type for your business, there are a number of factors to consider. This two-part series will provide information on the benefits and hurdles of the four main types of business entities that New York State business owners might choose. Two of the most important factors are the tax implications of your choice and the level of legal protection your choice would offer you personally. It is also important to consider the administrative costs, both in forming and maintaining the business. Finally, you should take into account your ultimate goals regarding the size and nature of your business. For example, will you seek outside investors? There is no one-size-fits-all entity type for new businesses, but there are advantages to choosing a simpler or more complicated entity structure, depending on the vision you have for the growth of your business.

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Five Signs that Your Company is Doomed

We have seen a lot of companies go into bankruptcy over the years, and there are some common issues with most of them. These are issues that may not necessarily show up on the balance sheet, but in my experience they are sure signs that trouble is ahead. If some of the signs on this list apply to your company, then some major course corrections may be in order. If all of the signs apply, then your company is probably doomed.

1. The owner’s son or daughter is going to take over, no matter what, and he or she is unqualified. In a lot of family-owned businesses the company falls apart in a few generations because owners conflate a management succession plan with an estate plan. Giving Junior ownership of the family company after the founder is gone is fine, but management should only consider giving Junior the job of running the business if he or she would reasonably have been hired by an objective HR manager from among a pool of qualified candidates. Unlike good looks, managerial competence is not an inherited trait.

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