Category: Business Law & Contracts

How Do You Expand Your Company Into North Carolina From Another State?

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As a business law attorney, one of the most frequent questions I am asked is some variation of “How do I transfer or expand my out-of-state company to North Carolina?” I’ll address the most common scenarios and the reasonable options available. I’m using South Carolina as the “other” state for example purposes, since we also practice in SC. However, the same general process is true regardless of which state your company originated in.Scenario B: “I live in South Carolina, which is where my company is and will be based, but I want to expand my region of operations to include North Carolina. What should I do and how do I do it?”

Option 1: keep your South Carolina LLC open and register it with the State of North Carolina as a foreign business authorized to transact in North Carolina. You’d obtain a “Certificate of Good Standing” or similar from Florida. You then provide that to the Secretary of State for North Carolina as part of your North Carolina Application for Certificate of Authority (to conduct business in North Carolina). Assuming you are approved by NC, you’re now good to go to conduct business in both states, or either state, and you can have your principal place of business in either state. You will likely be required to pay annual fees to each state and file taxes in each state, which are important factors to consider.

Option 2: start an affiliated company or subsidiary in North Carolina. In certain specific instances, you may keep your South Carolina LLC open, and instead of registering it with North Carolina, you’d prefer to create and register a separate but related business entity in North Carolina. This is typically referred to as a “subsidiary” or an “affiliated company”. You will likely be required to pay annual fees to each state and file taxes in each state, which are important factors to consider.

Additional notes. Under any of the above options, you’ll have to have a registered agent with a “continuous presence” in NC. Many law firms (like mine) agree to provide that service for a small annual fee, but your company’s “RA” doesn’t have to be a business lawyer or law firm. Of course, we also provide the very services needed to transfer your business overall.

These actions can be accomplished without an attorney, but you should at least consider consulting with an attorney any time you make a significant change to your business entity. Good luck!

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Arbitration Fees – How Much do Arbitrators Cost?

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Business law Attorney Jason McGrath shares some information about how much you should expect to pay in fees to an Arbitrator in this short video.

https://youtu.be/_mJseLaXzM0

Here are some of the key points contained in this informational video:

  • Arbitrators typically charge fees similar to what lawyers charge.
  • Does the Arbitrator require a minimum amount when the arbitration is scheduled? This may be called a cancellation fee or a retainer fee. The arbitrator may require this to offset a loss if the arbitration cancels.
  • Arbitrators can sometimes be bargained with to lower fees but normally these are set fees.
  • Arbitration fees (which are mostly made up of the Arbitrator’s fees) are often split evenly between the parties, but this can be altered by contract, law, or court order.

You should get advice from an attorney to assist in handling litigation issues like arbitration.

This is part of a continuing series of video blogs on contract law and arbitration – you can find the first part of this series on our blog or on our YouTube Channel.

If you need legal services in North Carolina, South Carolina, Georgia, Florida, Ohio, or Tennessee we invite you to fill out our confidential client form for possible legal assistance.

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Arbitration: How Do You Choose The Arbitrator?

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Attorney Jason McGrathexplains some things to consider when choosing the arbitrator during a lawsuit in this short video.

Here are some of the key points contained in the video:

  • If using a panel of 3 arbitrators: each party picks an arbitrator and then those two arbitrators pick the third one.
  • If using only 1 arbitrator: one side presents a list of possible arbitrators to the other side and the other side picks from the list.
  • You go back and forth and negotiate between the parties until a decision is made.
  • You may wish to avoid attempting private conversations with potential arbitrators in order to avoid the appearance of impropriety.
  • Consider all the information available to you to make an informed decision about your arbitrator.
  • Arbitrators may also be appointed by the court.

If you need legal services in North Carolina,
South Carolina,
Georgia,
Florida,
Ohio,
or Tennessee we invite you to fill out our confidential client formfor possible legal assistance.

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Wedding Bell Blues: Contractual Considerations for Weddings and Events in a COVID-19 World – Part 1

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As an attorney who routinely drafts and analyzes business contracts and a bride during the COVID-19 pandemic, I knew that there were several contractual aspects I would need to consider when entering into countless contracts with the vast array of people and vendors involved in planning a wedding, especially during a global pandemic.

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While it appears that the initial “panic” of the COVID-19 pandemic has gradually decreased and many 2020 weddings have been rescheduled, the health concerns with regard to mass gatherings are still very much present and will not be going away any time soon. Whether you’re in the beginning stages of planning like myself, or attempting to navigate the contracts you entered into months ago, below are some considerations and legal concepts you may find helpful.

Force Majeure

Service contracts typically have stated procedures or policy for when an event is cancelled or interfered with. The cancellation policy may reference “Acts of God,” which is commonly referred to as a “force majeure” clause. These clauses, if invoked, may relieve one or both parties from being penalized for breaching the contract based upon nonperformance due to a disruption caused by an unpredictable event.

While courts can enforce these clauses, they will treat each clause different as no two clauses are the same. Each clause differs in what triggers the clause (i.e., the event, incident, and/or catastrophe) and the parties’ available options if the clause is triggered (i.e., right to cancel the contract, ability to reschedule event, etc.). Common triggering events included in these clauses are Acts of God, government action or regulation, natural disasters, and terrorism. Okay, so a global pandemic would be considered an “Act of God,” right? Maybe. Maybe not.

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So what can you do? If you are currently engaged in the negotiation stage of your contract, you can insist on the clause including language specific to COVID-19, such as “pandemic” or “public health crisis” in the chance that there is another ‘wave’ of infection. Regarding your options after the clause is triggered, you and the other party should discuss what can be done should you need to cancel your original wedding or event date. Rather than provide the option for either party to cancel the contract altogether, it would be advantageous to, instead, suggest that the clause provide for the rescheduling of the event within a specified period of the original event date, like six months or a year.

In the absence of a force majeure clause or the language that specifically suggests COVID-19 concerns, you may have still have some defenses to your contract obligations under the doctrines of impracticability and frustration of purpose.

💬 We hope you enjoyed the first post of this three part series by Attorney Kelly Frecker. Return to our blog next Wednesday for part two.

Decision On An Arbitration Provision In A Contract

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Attorney Jason McGrath discusses some items to consider when deciding to include an arbitration provision in a contract matter in this short video.

Watch here > https://youtu.be/rOPNhRSSLVE

Here are some of the key points contained in the video:

⬤  Arbitration: do you prefer arbitration or a formal court case if there is a dispute?

⬤  The intent of an arbitration provision in a contract is to avoid a formal court case.

⬤  Arbitration provisions are, in general, enforceable and typically will be binding in the same way that a civil court judgment can be enforced.

⬤  There are ways to appeal an arbitration decision but they are limited.

⬤  Arbitration is usually less expensive than a formal court case.

⬤  You should talk to an attorney for advice when considering including an arbitration provision to your business contract.

If you need legal services in North Carolina, South Carolina, Georgia, Florida, Ohio, or Tennessee we invite you to fill out our confidential client form for possible legal assistance.

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Arbitration Agreement: How to Get to Arbitration if A Lawsuit Was Filed First

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Attorney Jason McGrath shares some items to consider when your contract has an arbitration provision but the other party has already filed a formal lawsuit in the court system in this short video.

Click this link to view on YouTube https://youtu.be/J23FU7EDFB0, or watch below.

 

Here are some of the key points contained in the video:

What do you do if the other party has already filed a formal lawsuit in the court system?

  1. You go to the other side and point out that there is an arbitration clause in the contract and demand it be honored.
  2. If the other side refuses to halt the lawsuit and go to arbitration, you file a motion asking the court to dismiss or stay the lawsuit and order arbitration.
  3. This type of a motion needs to be filed before the case goes to far in the formal court system.
  4. If the court believes the arbitration clause to be valid, it will typically order arbitration and halt the lawsuit in the meantime.
  5. More often than not, arbitration clauses are enforced by courts.

You should get advice from an attorney to assist in handling litigation issues like arbitration.

If you need legal services in North Carolina, South Carolina, Georgia, Florida, Ohio, or Tennessee we invite you to fill out our confidential client form for possible legal assistance.

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Interrogatories – How They Generally Work

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Attorney Jason McGrath explains “Interrogatories” during litigation and how they generally work in a lawsuit in this short video.

Click here to watch on YouTube  – https://youtu.be/s923VxHdLyE

Here are some of the key points contained in the video:

  1. Interrogatories are a list of written questions.
  2. The receiving party is to respond, typically within 30 days, to the questions or file an objection or series of objections.
  3. There is a rule limiting the number of questions that may be asked.
  4. The responses should be evaluated by the party that initiated the Interrogatories for accuracy and completeness and these issues can be questioned within the court system.

If you need legal services in North Carolina, South Carolina, Georgia, Florida, Ohio, or Tennessee we invite you to fill out our confidential client contact form for possible legal assistance.

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Letter of Good Standing and Certificate of Existence

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This video contains helpful information for those going into business within the state of North Carolina including:

  • Certificate of Existence from the N.C. Secretary of State
  • Letter of Good Standing from the N.C. of Revenue

Business law attorney Jason McGrath discusses Letters of Good Standing and Certificates of Existence for North Carolina businesses in this informational video.

Click here to view on YouTube – https://youtu.be/EFhxSwkVy2E

If you are in need of legal assistance for your business in North Carolina, South Carolina, Tennessee, Georgia, Florida or Ohio, please fill out our confidential client intake form.

Where Does an Arbitration Physically Take Place?

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Attorney Jason McGrath shares some information about where you can expect an arbitration proceeding to physically take place in this short video and summarized in this blog post.

Understand the practical logistics of an arbitration that may arise from a dispute about your business contract.

Here are some of the key points contained in this informational video:

Where will the arbitration physically take place? What city or county? An attorney’s office? The courthouse? City hall?

  • As far as city or county, arbitration often takes place where a related lawsuit would be (or is) taking place.
  • Some arbitration agreements will dictate what city or county the arbitration must occur in.
  • Arbitration can usually occur anywhere that the parties agree.
  • The arbitration hearing could take place at a private law office or the arbitrator’s office.
  • Arbitration doesn’t usually occur in the courthouse.

Occasionally a court will enter an order as to the logistical specifics of arbitration, such as the hearing location. You should get advice from a contract attorney to assist in handling litigation issues like arbitration.

If you need legal services in North Carolina, South Carolina, Georgia, Florida, Ohio or Tennessee, we invite you to fill out our confidential client form for possible legal assistance.

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Follow the Contract’s Arbitration Clause or File a Lawsuit?

Posted on by g83js92js91

Attorney Jason McGrath explains some things to consider when deciding whether to follow a contract’s arbitration clause or file a lawsuit in this short video.

Click here to watch on YouTube or watch the video below.

Here are some of the key points contained in the video:

  • How do you end up in arbitration vs. in court?
  • Typically, someone has to decide – do we follow the arbitration clause or just file a lawsuit?
  • Parties usually just file a formal lawsuit as if there is no arbitration clause.
  • There can be some negatives to ignoring the arbitration clause.

You should have your attorney take a look at the contract and then make a careful decision on how to proceed based on a through legal analysis of your case and the contract.

If you need legal services in North Carolina, South Carolina, Georgia, Florida, Ohio, or Tennessee we invite you to fill out our confidential client form for possible legal assistance.

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