fbpx

Business Law

Business Law |  Personal Injury | Other Legal News
Treating your company like a public trust

What Happens When You Treat Your Company Like a Public Trust

Most business owners begin their journey with a vision, one that typically includes profit, market presence, and longevity. But the values-driven business owners who see their businesses truly thrive, those that build reputations that outlast product cycles and leadership changes, adopt a deeper sense of purpose. They start to behave not as private fiefdoms but as “public trusts”. That shift is more than just ethical; it’s strategic. It unlocks long-term growth, attracts top-tier talent, and reduces the risk of regulatory fallout. If you’re a founder, CEO, or board that is intrigued by this transition, we hope this encourages you to pursue  aligning your good intentions with solid legal structures. The Legal Architecture of Trust Trust is not a vibe. It’s built — slowly, consistently, through every contract signed, every policy written, and every leadership decision made. While culture may be the invisible glue that binds a company together, it’s the legal infrastructure that helps make those values stick. From governance documents and compliance protocols, to hiring practices and dispute resolution strategies, the real foundation of stakeholder trust lies in how your business behaves under pressure, not just in ideal circumstances. That’s why legal planning shouldn’t just focus on risk avoidance. It should reflect your values in action. At MSB Law , we help values-driven business owners bridge this gap. Our firm doesn’t just draft agreements — we design and help implement legal structures that reinforce the kind of leadership our clients want to be known for. Whether it’s building policies that promote transparency, or helping founders implement employee equity programs, the law becomes a tool for integrity, not a hindrance to it. Leading Like You’ll Be Remembered What does it look like to lead as if your company is a public trust? It looks like honoring your word in contracts, even when a loophole would let you off the hook. It looks like offering generous severance – not because you’re legally required to, but because your people deserve dignity. It looks like embedding ethical clauses in vendor agreements, so that your partners reflect your principles and values. These decisions might not make headlines, but they build something far more powerful: positive reputation. While many executives focus on short-term wins –hitting the next quarter’s target, securing that next round of funding, etc. – the business ownesr who lead with integrity take the long view. They think in decades, not months. They prepare for transitions. They guard against mission drift. And this is where our role as trusted legal counsel for values-driven business ownersexpands from transactional to transformational. As trusted legal counsel, we have the privilege of becoming your mirror, your advisor, and your safety net. Rethinking Ownership and Accountability In the traditional model, a business owner’s role is simple: create value and deliver returns. But when you adopt the public trust mindset, ownership comes with a broader definition of accountability. You’re responsible not only to shareholders with a financial interest, but to the employees who build the product, the customers who keep you in business, and the communities that are affected by your operations. Lest you think we’re taking this too far, this is not just philosophical musing. It’s rapidly becoming a business imperative. According to a McKinsey report, companies that actively embrace stakeholder capitalism are outperforming peers on long-term value creation. The takeaway is clear: doing right by people is good business, and legally protecting those intentions is essential. When your operations scale, your liability does too. If your agreements, policies, or communications don’t reflect your values clearly, you leave your company vulnerable to reputational damage, legal scrutiny, and mission misalignment. The Moral Weight of Succession Perhaps the greatest test of treating your company like a public trust is what happens when you step away. Succession is not just an HR process or a legal transaction, it’s a moral moment. It determines whether the values you fought to instill will continue after you’re gone. Too many business owners stumble here. They either delay the planning or treat it only like a financial transaction, ignoring the cultural and ethical dimensions. That’s a mistake. A strong succession plan, designed with the help of experienced legal counsel, ensures that your business doesn’t lose its core identity with your departure. It also protects the livelihoods of the people who’ve trusted you with their careers. At MSB Law, our succession planning services help values-driven business owners articulate their vision clearly, in legal language that can guide future leaders and safeguard your legacy. Legal Tools for Ethical Leadership The truth is, most values-driven business owners want to lead ethically; they just don’t always have the right tools. That’s where well-drafted contracts, employment handbooks, governance frameworks, and shareholder agreements come in. These aren’t just “legal must-haves,” they’re opportunities to encode your values into the very DNA of your business. A well-written partnership agreement doesn’t just prevent lawsuits; it clarifies expectations to help preserve relationship. A transparent bonus policy doesn’t just reduce churn; it shows your team that you mean what you say and that you care about them as more than just a cog in your machine. One recent JUST Capital survey revealed that 84% of Americans believe companies say the right things but fail to back them up. That’s your competitive advantage. When your legal documentation reflects the ethical commitments, both internally and externally, you build real trust, the kind that compounds over time. If you’re ready to operate with a broader sense of purpose and build a legal foundation that supports it, MSB Law is ready to help. As your trusted Overland Park business lawyers, we’re here to provide you the clarity, structure, and foresight you need to lead confidently, and to build something that lasts.

Read More »
business succession plan

Where to Start with a Business Succession Plan

Starting your business succession plan might feel overwhelming. You’ve poured years of hard work, passion, and dedication into your company, so taking the first step towards transitioning can feel emotional and intimidating. However, having a clear succession plan is one of the best ways to ensure the longevity of your business, preserve your legacy, and maintain the well-being of your people. Here’s a straightforward guide on where to begin with your business succession planning to help you develop a grounded, thoughtful, and values-centered approach. 1. Clarify Your Vision and Goals Before diving into the details, take time to reflect on what truly matters to you. Are you most concerned with your business continuing to operate in the same manner? Is financial security your primary goal, or is it more important that family or long-term employees remain involved? Defining these fundamental goals early sets a meaningful foundation for your entire plan. Need help defining what it is exactly that you’re passing on? Check out this article. 2. Start Early and Plan Thoughtfully Succession planning is not a last-minute task—it’s a process that is best pursued through careful thought and early action. Begin the discussion with key stakeholders, such as family, employees, and trusted advisors; and do it sooner than you may feel “ready”. Early conversations help reduce stress and provide everyone involved with clarity about future expectations and responsibilities. 3. Identify and Prepare Potential Successors Whether you’re considering family members, current employees, or external candidates, clearly identifying your ideal potential successors is essential. Evaluate their skills, values, leadership style, and genuine desire to lead. Once you’ve identified possible successors, you can create plans to help them develop any necessary skills and experience over time. Read more about leading and passing on a business of values. 4. Get a Professional Business Valuation Understanding your business’s true value is crucial in creating a fair and realistic succession plan. A professional valuation provides clarity about your financial position, enabling you to make informed decisions about structuring the transition and ensuring the longevity of your company.  Seek out a trusted referral to a business valuation expert, so you can have confidence in the results. 5. Choose Your Transition Method Will you gradually transition ownership, or all at once? Will you pursue the complexity of an employee stock ownership plan (ESOP)? Or sell directly to a key employee, pass the business to family, or sell to an external buyer? Each method has unique advantages and challenges. Deciding your options early allows you ample time to navigate any complexities and prepare all parties involved. 6. Develop a Comprehensive Timeline Establishing a clear timeline ensures everyone involved knows what to expect and when to expect it. Your timeline should include milestones like leadership training, partial equity transfers, or gradual transition of operational control. This clarity helps reduce uncertainty and maintains business stability throughout the process. 7. Create Contingency Plans Even the most thoughtful succession plans can encounter unexpected challenges. Having contingency plans in place, for scenarios such as health issues, sudden changes in successor availability, or market shifts ensures your business remains protected no matter what. 8. Engage Experienced Advisors A business succession plan encompasses a range of complex legal, financial, and emotional considerations. Engaging trusted professional advisors experienced in succession planning, such as attorneys, accountants, and financial planners, as well as trusted personal advisors, like mentors or pastors, ensures your decisions align with best practices and your personal values. At MSB Law, we recognize the importance of a well-planned succession strategy. We are committed to helping business owners like you develop plans that not only secure your business’s future, but also honor your values and legacy. Our approach is always values-driven, focusing on your unique needs and goals. Ready to start your succession planning journey? Contact MSB Law today to speak with one of our experienced attorneys about how we can help you develop a customized succession plan tailored uniquely to you.

Read More »
independent contractor vs employee

Independent Contractor vs. Employee: Understanding Classification and Legal Risks

Correctly classifying workers as either independent contractors or employees is a crucial decision for business owners. This classification impacts tax obligations, employment law compliance, and potential legal risks. Misclassification can result in significant financial penalties and liability. With evolving legal interpretations—including potential shifts in judicial review under the Chevron Doctrine, business owners should stay informed and proactive in their worker classification practices. Independent Contractor vs. Employee: Why It Matters for Businesses The distinction between an independent contractor and an employee affects a wide range of legal and financial considerations for businesses, including: Taxation: Business owners must withhold and submit income taxes, and pay Social Security and Medicare taxes for employees, whereas independent contractors handle their own tax obligations. Compliance & Liability: Employees are entitled to benefits such as minimum wage, overtime pay, and workers’ compensation, while independent contractors are not. Utilizing independent contractors can reduce employer obligations, but misclassification leads to significant compliance risks. Control & Flexibility: Businesses have greater control over employees’ work and schedules, whereas independent contractors operate with much greater autonomy. Legal & Financial Risk: Misclassification can lead to penalties from the IRS, Department of Labor, and state agencies, including having to pay back wages, fines, and tax liabilities. Key Factors in Worker Classification Federal and state laws use different tests to determine whether a worker is an independent contractor or an employee. Among many other factors, business owners should consider: Degree of Control: Does the business dictate how, when, and where the work is done? Financial Independence: Does the worker have an independent business and bear their own expenses? Nature of Work Relationship: Is the work integral to the company’s core operations, and is it an ongoing relationship? How the Chevron Doctrine Could Impact Business Owners For decades, the Chevron Doctrine, established by the Supreme Court in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. (1984), required courts to defer to federal agencies’ interpretations of ambiguous laws. However, with the doctrine now overturned, courts are no longer bound to defer to agencies like the Department of Labor when interpreting worker classification laws. This change introduces greater legal uncertainty, as courts will now have more discretion in interpreting employment laws, potentially leading to inconsistent rulings across different jurisdictions. As a result, businesses facing disputes over worker classification may have a stronger position when challenging agency regulations in court. However, without the uniform deference to agency guidance, businesses must be more diligent in staying updated on local legal rulings, and should consult legal counsel to ensure compliance. Employers and their legal counsel should closely monitor how courts handle classification cases in this new legal landscape, and adjust their policies accordingly to avoid costly litigation and compliance risks. Best Practices for Businesses To mitigate misclassification risks, business owners should: Review Contracts Carefully: Ensure agreements with independent contractors accurately reflect their status and responsibilities. Business owners should be careful to not “overreach” in attempts to control independent contractors to such an extent they could be classified as employees. Conduct Internal Audits: Regularly assess worker classifications to ensure compliance with federal and state laws. Seek Legal Guidance: Consult a business law attorney to analyze complex classification issues and reduce exposure to liability. MSB Law: Helping Values-Driven Business Owners Navigate Employment Law Compliance A critical element of being a values-driven business owner, whether in Kansas City or beyond, is taking care of your people and everyone critical to the success of your business, including employees and independent contractors.  To do that well and to reduce legal risks, it’s critical to understand employment classification laws.  We love serving as trusted legal counsel for values-driven business owners.  So whether you need guidance on structuring independent contractor agreements, ensuring compliance with shifting regulations, defending against misclassification claims, or anything else business law related, we’re here to serve. For expert legal counsel on independent contractor vs. employee classification, contact MSB Law today.

Read More »
Tax season 2025

Tax Season 2025: What Business Owners Need to Know & How to Stay Ahead

As tax season approaches for business owners, staying informed about potential tax changes and taking proactive steps can make all the difference in protecting your financial future. Whether you’re a growing business owner juggling multiple ventures, or a long-time entrepreneur focused on transitioning your companyto the next generation, preparing early can help you navigate shifting tax laws with confidence. What Tax Changes Could Be on the Horizon? While 2025 tax laws aren’t set in stone, discussions are underway regarding potential changes that could impact individuals and businesses alike. These changes may involve adjustments to income tax brackets, available deductions, and business tax credits — all of which can significantly affect your business and financial plans. Proactive planning is essential to avoid unexpected tax burdens. DJ Kim, one of our trusted business and tax attorneys, emphasizes the importance of staying ahead: “Tax laws are always evolving. The best way to protect your assets is to regularly review your business and tax plans, and adjust for any anticipated changes before they go into effect.” Tailored Tax Strategies for Every Values-Driven Business Owner No two business owners are alike, and tax planning should reflect that. For the hands-on business owner — the one who thrives on getting involved in every aspect of their business — tax season presents an opportunity to dive into the details. This type of entrepreneur benefits from regular tax strategy sessions and exploring every deduction or credit available. Partnering with an experienced tax advisor can help maximize savings without overlooking critical details.  That’s one reason we provide free referrals to trusted CPAs, and to other financial professionals, for all our values-driven business owner clients. On the other hand, the legacy business owner — someone focused on succession planning, and seeking to pay their company forward while reaping thebenefits of their hard work — may prioritize minimizing estate taxes and ensuring a seamless and cost-effective transition for the next generation. Trusts, gifting strategies, and long-term tax planning can protect wealth while honoring the future vision for the business. How to Stay Ahead in 2025 Start Early: Gather your financial documents and schedule time to review them with your tax advisor. Plan for the Long Term: Work with trusted professional advisors (business lawyer, CPA, CFP, CFO, or others) to create a comprehensive tax strategy that aligns with your business and personal goals. Embrace Flexibility: Tax laws can change quickly, so regular check-ins with your trusted advisors can help you plan ahead, and then pivot when necessary. Explore All Options: Research available credits and deductions specific to your industry or your unique business model. By taking a proactive approach, both hands-on business owners and legacy-focused entrepreneurs can navigate tax season with greater confidence and efficiency. Partner with MSB Law for Proactive Business and Tax Planning At MSB Law, we understand that every business owner has unique goals and challenges. Our team is here to provide values-driven business owners with the knowledge and insights needed to prepare for the future, no matter what tax changes may come. Schedule a consultation today to discuss your business and tax strategies, and ensure you’re ready to take on tax season 2025 with confidence.

Read More »
CTA Beneficial Ownership Information reporting requirements

Understanding the Current Status of the CTA, and its Beneficial Ownership Information (BOI) Reporting Requirements

The CTA requirements for Beneficial Ownership Information (BOI) reporting have been in flux due to ongoing litigation. Business owners are understandably concerned about compliance, but recent developments have clarified the immediate obligations—or lack thereof—for now. The Timeline of the Litigation The BOI reporting requirements stem from the Corporate Transparency Act (CTA), a law designed to combat illicit financial activity by requiring certain companies to report details about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). In recent months, the enforcement of these requirements has faced legal challenges. Initially, a preliminary injunction was issued to halt the enforcement of the BOI reporting requirements. This stay was subsequently lifted, only to be reinstated again. Now, the federal government is actively appealing the latest stay, leaving business owners in a state of uncertainty about their obligations. FinCEN’s Current Guidance Amid this legal back-and-forth, FinCEN has addressed the concerns of business owners. According to FinCEN’s official statement, companies are not required to comply with the BOI reporting requirements while litigation is pending. The agency has assured stakeholders that additional guidance will be provided in the future, once the legal matters are resolved. For the most up-to-date information, FinCEN recommends monitoring their official BOI page. What Should Businesses Do Now? While no immediate action is required, business owners should stay informed and be prepared to act when the legal uncertainties are resolved. Here are some practical steps to take: Monitor Updates: Keep a close eye on announcements from FinCEN and legal updates regarding the appeal. Understand BOI Requirements: Familiarize yourself with the reporting requirements outlined in the Corporate Transparency Act, to ensure your company is ready to comply if enforcement resumes. Consult Legal Counsel: If your business may be affected by these regulations, seek advice from a legal professional to ensure you’re prepared for any future developments. Moving Forward The shifting landscape around BOI reporting highlights the importance of staying informed and proactive. At MSB Law, we are closely monitoring this situation and are here to help business owners navigate the complexities of compliance. If you have any questions about how these developments might impact your business, contact us for expert legal advice.

Read More »
Systematic Case Evaluation

The Case for Systematic Case Evaluation Before Mediation

Seasoned trial lawyers often lean on instinct when assessing case value—but even the sharpest instincts can miss the nuances that make or break a case. That’s why a systematic approach to case evaluation is invaluable. It helps you dig deeper, ensuring that every critical detail—both risks and opportunities—is factored into your strategy. Here’s a simple but effective framework to guide your analysis: Legal Strengths and Weaknesses: How solid is your legal position? Are there uncertainties or vulnerabilities in the claim or defense? Are dispositive motions a factor Witness Impact: Are your witnesses credible, engaging, and persuasive? Could they strengthen or weaken the narrative in a jury’s eyes? Do any of your key witnesses have “warts” such as an abrasive personality, lack of confidence, or poor communication skills? Narrative Resonance: Does your story align with jurors’ common sense and values? A relatable narrative often sways deliberations. Jury Pool Characteristics: How might the local jury pool’s demographics, values, or experiences affect your case? How will your client or your client’s case resonate with the local jury pool? Litigation Costs: Do the financial, time, and emotional costs of going to trial align with the potential reward? Do the costs, time commitment, and stress of trial align with your client’s needs and desires Judicial Influence: What do you know about the judge’s tendencies, track record, or rulings in similar cases? As a mediator, I see firsthand how lawyers who are systematic in their case evaluation gain an edge in negotiations. Systematic case evaluation uncovers blind spots and provides a foundation for more productive negotiation. I’m not suggesting that lawyers ignore the instincts they have honed through years of experience. Instead, I’m suggesting that lawyers view their case systematically first, and then apply their instincts to the full picture of their case. It’s similar to projecting the winner of a football game. It’s not enough to know which team is “better.” We also need to know who is injured, who is playing, what the weather will be like, and who will have home field advantage. Similarly, its critical to consider the factors I’ve identified above (and others) when evaluating your case. How do you approach case valuation? Have you developed a system, or do you rely primarily on experience and instinct? Share your thoughts—I’d love to hear your insights.

Read More »