Blogs

Business and Financial Services

Virginia Narrows Employer Non-Competition Protections

Virginia employers received another warning in late 2011 that broad non-competition agreements were becoming increasingly difficult to enforce. In this Bean, Kinney & Korman article published in the BKK Construction & Land Use Newsletter, James V. Irving explains that the Home Paramount Pest Control Companies v. Shafer decision invalidated a non-compete provision that prohibited a former employee from working in nearly any capacity within the pest control industry. The court found the…

December 1, 2011

Business and Financial Services

Details Matter: Family Limited Liability Companies and 1031 Exchanges

Family limited liability companies and Section 1031 exchanges can offer important tax and estate planning benefits, but only if taxpayers follow the technical requirements precisely. In this Bean, Kinney & Korman article published in the BKK Wills, Trusts and Estates Newsletter, Jonathan C. Kinney explains that the IRS and the Tax Court have increasingly challenged family LLCs, family limited partnerships, and 1031 exchanges when taxpayers fail to satisfy even basic procedural requirements.…

November 1, 2011

Business and Financial Services

Non-Competes in Virginia Civil Settlement Agreements

Virginia courts generally give greater deference to non-competition agreements arising from arm’s-length business transactions than to those imposed in employment relationships. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, James V. Irving explains that civil settlement agreements may fall into that more favorable category because the parties are presumed to have relatively equal bargaining power. The article notes that Virginia courts are more likely to…

November 1, 2011

Business and Financial Services

Tax Law: IRS Announces New Settlement Procedure for Workers Misclassified as Independent Contractors

The IRS introduced a new Voluntary Classification Settlement Program in 2011 that allowed employers to reclassify workers previously treated as independent contractors without facing the full penalties that normally accompany worker misclassification. In this Bean, Kinney & Korman article published in BKK Business Law News, the analysis explains that eligible employers could pay a reduced amount equal to roughly 10 percent of the employment taxes that otherwise would have been due for the most…

November 1, 2011

Business and Financial Services

Non-Competition Agreements and Independent Contractors

Virginia courts traditionally analyze non-competition agreements in the employment context, but cases involving independent contractors raise additional questions because the parties are not in a typical employer-employee relationship. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, James V. Irving explains that Virginia courts in 2011 enforced several non-compete agreements against independent contractors where the restrictions were narrow, reasonable, and…

September 1, 2011

Business and Financial Services

Importance of Corporate Formalities

Corporations and LLCs provide valuable liability protection, but that protection can be lost if the owners fail to follow basic corporate formalities. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, James V. Irving explains that businesses should maintain annual reports, preserve a registered office and agent, hold meetings when required, keep minutes and records, separate business and personal finances, and document major corporate decisions. The article…

July 1, 2011

Business and Financial Services

Tax Law: Tax Consequences of Contributing Property to a Corporation

Contributing appreciated property to a corporation can create significant tax consequences depending on whether the transferor maintains sufficient control of the company after the transaction. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, Ronald A. Feuerstein explains that no gain or loss is generally recognized when property is transferred solely in exchange for stock and the contributing parties collectively control at least 80 percent of the…

July 1, 2011

Business and Financial Services

The Arrogant Car Salesman in a Non-Competition Agreement

Virginia courts are generally reluctant to enforce broad non-competition agreements, but they may be more willing to do so when the facts strongly favor the employer. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, James V. Irving explains that the case involved a car salesman whose conduct made him an unsympathetic defendant in the eyes of the court. The article notes that the salesman allegedly acted arrogantly, ignored his contractual obligations, and…

March 1, 2011

Business and Financial Services

The Substantially Prevailing Party

Attorney’s fee provisions in contracts often allow the “substantially prevailing party” to recover fees and costs, but determining who actually qualifies can become complicated when both sides win and lose on different claims. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, James V. Irving explains that courts do not always view the substantially prevailing party as the litigant who simply wins the most claims. The article discusses a dispute in which the…

January 1, 2011

Business and Financial Services

Health Savings Accounts

Health savings accounts, or HSAs, allow individuals enrolled in high-deductible health plans to set aside money on a tax-advantaged basis for qualified medical expenses. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, the analysis explains that HSA contributions can generally be made on a pre-tax basis, investment earnings grow tax-free, and withdrawals remain tax-free when used for eligible medical expenses. The article also notes that unlike flexible…

November 1, 2010