Numerous companies established post January 1, 2024, are obligated to submit a Beneficial Owner Report to FinCEN within 90 days of their inception. Similarly, entities formed before January 1, 2024, must complete this requirement by December 31, 2025. A beneficial owner is defined as an individual with substantial control over the company or ownership of at least 25% of its shares. Exceptions exist, notably for "large operating companies" with over 20 employees and $5 million in gross sales.
Read MoreStarting a business in New York can be an exciting but challenging endeavor, especially when it comes to funding options for startups. Each funding avenue comes with its own legal considerations and implications that can significantly impact the future of your business. Understanding these legal complexities is crucial for making informed decisions and safeguarding your venture. In this blog, we'll explore the various funding options available to New York startups and the legal aspects associated with each, empowering entrepreneurs to navigate the complex landscape of funding with confidence and legal clarity.
Read MoreWelcome to the Comprehensive Guide to the Permanent Outdoor Dining Program in New York City! In response to the challenges posed by the COVID-19 pandemic, the city has launched a permanent outdoor dining program to support local restaurants and offer New Yorkers an enhanced dining experience. This program represents a significant shift from the temporary outdoor dining initiative, opening the doors for all eligible restaurants to participate, regardless of size or location.
Read MoreThe advent of remote work has transformed the landscape of business operations, and one crucial aspect that has evolved alongside is the execution of contracts from a distance. As New York businesses adapt to this new paradigm, understanding the legal intricacies of remote contract execution becomes paramount.
Read MoreImporting food into the United States involves compliance with regulations set by the Food and Drug Administration (FDA) to ensure the safety and quality of the products. Here is a summarized overview of the FDA requirements for importing food into the U.S.
Read MoreIn the fast-paced world of New York business, securing the creative output of your employees, contractors, and service providers is crucial. The "work for hire" clause is a legal tool that can provide your company with the protection it needs. In this blog post, we will explore how the "work for hire" clause safeguards your business interests.
Read MoreCorporate governance is a critical aspect of running a successful business, particularly in New York, where regulations and legal requirements are stringent. Effective corporate governance practices ensure transparency, accountability, and the protection of stakeholders' interests. Directors and officers play a pivotal role in upholding these best practices, with their fiduciary duties and responsibilities. From maintaining proper record-keeping to managing conflicts of interest, there are several key areas that New York businesses must focus on to maintain strong corporate governance. In this blog, we will explore the best practices that can help businesses in New York foster good governance and stay compliant with the evolving legal landscape.
Read MoreIn an effort to combat illicit activities like money laundering, corruption, terrorist financing, and tax fraud, effective January 1, 2024, the Corporate Transparency Act (CTA), enacted in 2021, will introduce standardized reporting requirements for beneficial ownership information pertaining to corporations, limited liability companies, and other business entities operating or registered in the United States. The CTA mandates that such businesses provide specific details about their owners to the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN). Noncompliance with these requirements carries significant penalties.
Read MoreIntellectual property (IP) protections in the United States are primarily governed by federal laws and regulations. Here is an outline of the main forms of intellectual property protection available: 1. Patents, 2. Copyrights, 3. Trademarks, 4. Trade Secrets, and 5. Trade Dress.
Read MoreGenerative AI is a type of Artificial Intelligence (AI) that focuses on creating new data rather than recognizing patterns in existing data. This type of AI uses deep learning algorithms to generate content such as images, videos, audio, text, and other kinds of media based on certain parameters or conditions. Generative AI has the potential to create unique content from scratch without any external input and can be used in various applications such as facial recognition, natural language processing (NLP), image generation, virtual personal assistants, and many more. The possibilities are endless when it comes to using generative AI for creative purposes. Generative AI technology is still relatively new but is quickly becoming an invaluable tool for businesses seeking to develop innovative services and products.
Read MoreAs a business, you want to make sure that you have all your bases covered. This includes having a master service agreement in place. A master service agreement is a contract between a company and its customers that outlines the terms and conditions of the services being provided. This agreement protects both parties involved and ensures that everyone is on the same page. Having a master service agreement in place is essential for any business, so make sure you take the time to put one together.
Read MoreThe Federal Trade Commission (FTC) recently proposed a rule to ban non-compete clauses in employment agreements. This proposed rule has been met with mixed reactions, as this would have major implications for businesses of all sizes. Let’s explore what this could mean for businesses and their employees in the near future.
Read MoreThe last two years have brought major macroeconomic and geopolitical shocks (Covid-19, Inflation, Ukraine war) that deeply affected the growth plans of many small and medium businesses and made investors very risk-averse.
Read MoreWhen you read news stories about financial crimes and business corruption, you might get the impression that businesses can get away with anything. It seems like banks will lend them huge sums of money after asking a few questions about what they will do with the money.
Read MoreWhat Companies Need to Know to Avoid Civil Penalties
In its mission to assist businesses comply with multiple laws, regulations and guidelines, Cea Legal analyzed the requirements of the recently enacted New York City’s pay transparency law. The new law makes it illegal for a NYC-based company – with at least four employees or independent contractors - to advertise a job opening without including information regarding the minimum and the maximum salary for the position.
An estate plan is a crucial strategy that should be devised for the transfer of high-net-worth individuals’ property, whether during their lifetime or, often, after their death.
At Cea Legal, we strive to create “bespoke” estate plans for each client. The task begins with understanding our clients’ long-term goals: making gifts or enjoying their wealth during their lifetime; optimal tax allocations; transfer assets at death and reducing probate proceedings; providing for disability; making charitable contributions.
Read MoreNewly formed companies often need fresh capital to start-up their operations. There is no one-size-fits-all approach when it comes to how to fund the business. We counsel founders from the outset and lead them to choose the right investors and, more importantly, the most valuable financing tools available under the specific circumstances.
The most common early-stage financing methods are convertible notes, simple agreements for future equity (SAFEs), preferred stock agreements.
Read MoreThe recently established Office of Cannabis Management published the criteria to apply for Conditional Adult-Use Retail Dispensary (CAURD) Licenses, thus opening the doors to the first cannabis legal sales in New York in the next few months. CAURD Licenses will be limited to “justice-involved” individuals, who is someone who was convicted, or had a parent/child/spouse who was convicted, of a marihuana-related offense in New York State before March 31, 2021.
Read MoreA “down-round” occurs when a company raises new capital according to a valuation lower than that had been used in the previous financing. While this might be seen as a last resort, it becomes less unusual and actually useful in a turbulent economic landscape like the current one. In fact, when a “down-round” is justified by factors that are outside of a company’s control, such as the current concurrence of a pandemic-induced crisis and inflation shocks, it should not affect the reputation of the company. On the other hand, as long as the fundamentals of the company are positive, it is a great opportunity for a clean restart when the economy bounces back.
Read MoreMitigating Contractual Risks: Representation And Warranties
Representations and Warranties are legal devices to minimize the inherent risks involved in any business relationship
Entrepreneurs are often excited to partner with someone else to launch a new product or services, as long as the new business relationship does not bring new risks and issues. To this effect, at Cea Legal, we are always asked to do everything possible to reduce new unforeseen risks.
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