Category: Business Law
Corporate Transparency Act Part 2 Beneficial Owner – Exercising Substantial Control
April 14, 2023 | Georgia Kellogg
The Corporate Transparency Act (the “CTA”) was enacted by Congress on January 1, 2021 as part of the federal government’s initiative to crack down on illicit activities. Effective January 1, 2024, most new and existing entities registered to do business in the United States will be mandated to file a report with the Financial Crimes Enforcement Network (“FinCEN”) disclosing information about the entity’s beneficial owners. The CTA defines a beneficial owner as any individual who, directly or indirectly, either exercises “substantial control” over the company or owns or controls at least 25% or more of the company’s ownership interests. An individual may directly or indirectly own or control the ownership interest of the company through various means, including joint ownership with one or more persons, through another individual acting as an intermediary, custodian, or agent, as a trustee, beneficiary, or grantor of a trust or similar arrangement, or by means of ownership or control of one or more intermediary entities that separately or collectively own or control the ownership interest of the company subject to reporting. “Substantial control” is exercised over the company if the individual 1) serves as a senior officer of the company; 2) has authority over the appointment or removal of any senior officer or a majority of the board…
Read MoreBGS Attends Annual DSTA Holiday Party
December 9, 2022 | Toni PerrierOn Friday, December 2nd, BGS attorneys Carole Clark Isakson and Erik Ordal, with paralegal Rachel Schwankl, enjoyed an evening in Duluth at the Duluth Superior Transportation Association holiday party. Isakson just concluded her second year on the board of directors for the DSTA. BGS is an avid supporter of the DSTA and other transportation related organizations. The firm plays an important role in the transportation industry as it provides legal advice to trucking companies large and small. Our transportation department has decades of experience in this specialized field and advises its clients on a variety of topics including; contracts, independent contractor rights, regulatory matters, cargo damage claims, mergers and acquisitions, employment matters and more. With more than 30 attorneys BGS is able to provide the services its trucking company clients need. Contact us with your transportation inquiries to learn more about the role BGS plays as counsel to transportation companies and the services provided. Barna Guzy & Steffen, ltd
Read MoreAn Overview of Business Valuation and Division in Divorce
October 13, 2022 | Jason C. Brown
Business owners face a unique set of challenges as part of a divorce. The valuation and division of business interests can be complex and stressful. At a fundamental level, understand that a business is an asset of its owner. Minnesota law provides that the assets of the parties to a divorce are divided in an “equitable” manner. That almost always means equally. Minnesota law also recognizes that if a party to the marriage brings an asset into the relationship, the asset likely has a nonmarital component that is not subject to division. If the value of the nonmarital business grows during the marriage, the increased value is considered marital. The key to determining the significance of business ownership often rests in the value of the business itself. Naturally, the more valuable the business, the more attention it receives. Business valuation is as much art as science. Our family law group works with the more reputable business appraisers in the Twin Cities. These experts typically invoke one of three methods to offer an opinion as to the market value of a business: (1) the balance sheet approach; (2) the multiple of profits approach; and (3) valuation based on comparable business sales. Valuation of a business using a balance sheet approach is relatively straightforward. The…
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