Greensboro Startup Attorneys & Lawyers

What is a Sole Proprietorship?

A sole proprietorship is a business with a single owner. It is the dream for many people. These businesses, which are not registered as an LLC (limited liability company), a partnership, or a corporation, have the benefit of flexibility. Sole proprietors can work as freelancers — independent contractors — or they can run physical, on-the-ground businesses. 

Often, home-based businesses are sole proprietorships. There are 23 million of these in operation today, vastly more than any other traditional forms. This sort of business carries dangers with it, and it's important to understand them so you can avoid pitfalls in bookkeeping, taxes, and other potential liabilities.

Sole Proprietorship vs. Incorporated Business

There's one major difference between a s

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Key Takeaways

• Exercising stock options gives you the right to buy shares at a set price (the strike price), which may be lower than current market value.
• Timing and method of exercise can significantly impact your financial outcome and tax obligations.
• There are multiple exercise methods: exercise-and-hold, cashless exercise-and-sell, and stock swaps.
• Early exercising may provide long-term tax advantages but comes with risks like holding illiquid stock.
• Knowing whether your stock options are "in the money" or "underwater" helps inform your decision-making.
• Different strategies apply depending on whether your options are incentive stock options (ISOs) or non-qualified stock options (NSOs).
• Always consult a financial or legal professional to determine the best strategy based on your individual circumstances.

Many employers now offer stock options in place of other popular benefits as a part of their emplo

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Key Takeaways

• An exclusivity agreement restricts one party from engaging with competitors for a specific time, geography, or product category.
• These agreements help businesses build trust, secure competitive advantages, and protect investments.
• There are several types of exclusivity agreements, including purchase, distribution, and employment-related clauses.
• Key risks include lack of flexibility, potential legal disputes, and limiting access to better partnerships.
• Clear definitions, timelines, exceptions, and remedies are essential for a valid and enforceable clause.
• Exclusivity terms can be mutual or one-sided, depending on the negotiation power of the parties involved.
• Businesses should consult legal professionals before entering exclusivity agreements to ensure fair and enforceable terms.

What Is

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