What's a Virtual Business Worth?
November 29, 2004
Traditional business-valuation tools don't work well online. As a result, problems arise if the owner wants to price an online business for sale. Book value rarely approximates real value without hard assets ' which many online firms don't carry. A value based on earnings or revenue can work ' if the firm has enough of a track record, through good years and bad, to make it reliable. <br>But a brick-and-mortar solution, the earnout, can solve this high-tech dilemma. In an earnout, a business-seller receives contingent payments based only on a business's profits in the hands of the buyer.
Bringing Spammers To Justice
November 29, 2004
When initiating a private action against a spammer, the first issue the plaintiff must grapple with is jurisdiction. If a recipient of spam is located in the same state as the spam sender, for instance, ordinary private-action rules apply. <br>But the problem there is that many would-be defendants reside outside the state where the spam recipient resides, and long-arm jurisdiction must be employed.
Developments of Note
November 29, 2004
Recent developments in e-commerce law and in the e-commerce industry.
e-Commerce Revenue Up Again, Gov't Reports
November 29, 2004
The U.S. Census Bureau reported Nov. 19 that estimated third-quarter e-commerce sales accounted for $17.6 billion of economic activity ' 1.9% of the total estimated $916.5 billion.
PCAOB Proves It Has Teeth
November 29, 2004
While some companies are unfamiliar with the Public Company Accounting Oversight Board (PCAOB), PCAOB has recently been making its presence known. PCAOB is a private-sector nonprofit corporation created by the Sarbanes-Oxley Act of 2002 (SOX), whose stated purpose is to "oversee the audit of public companies that are subject to the securities laws, and related matters, in order to protect the interests of investors ... " Section 101(a). Although some questioned whether PCAOB would ultimately have any real-world impact on accounting firms and the public issuers they audit, PCAOB has proven that it has the authority, ability and appetite to shape the heightened environment in which companies now operate following passage of SOX and its focus on restoring investor confidence in companies' financial reporting.
Differentiating Your Firm With Technology
November 29, 2004
Law firms were late adopters of information technology. Differentiating a firm with technology was easy in those days: The firm simply had to have technology. Of course, there's little evidence that clients cared much about their firms' technology in those days. <br>In contrast, some clients today will base their choice of law firms in part on the firms' technology.
Tax and Retirement Planning
November 29, 2004
The 2004 American Jobs Creation Act (AJCA) creates several tax breaks for businesses and made some other significant changes. This article highlights the more prominent provisions of the AJCA that affect businesses and individual taxpayers generally, and that to some extent have specific impact on law firms and other professional service providers.
The IRS Office of Professional Responsibility
November 29, 2004
The Internal Revenue Service has recently ramped up compliance and enforcement efforts with budget increases and enhanced resources. A lesser-known component of this revitalized enforcement is the IRS Office of Professional Responsibility (OPR), which is charged with regulating professionals ' mostly lawyers and accountants ' who practice before the IRS. OPR enforces ethical rules that govern practice before the Service, commonly known as "Circular 230," and may sanction practitioners who violate those rules. Because OPR matters can interact with the criminal process in many respects, conscientious white- collar practitioners and corporate tax counsel should familiarize themselves with OPR and its power over tax professionals.
In the Spotlight: Pay Attention to the Work Letter
November 29, 2004
The work letter that is attached to a lease, particularly an office lease, is a very important part of the lease document. Because it is an exhibit, and because many leasing professionals are not especially well versed in construction issues, the work letter is frequently given little attention during a lease negotiation.
