What's in a Name? -Sole Proprietorships. Son's continuation of Father's sole proprietorship under same name did not subject him to liability under "business continuation" theory. Father's sole proprietorship died with him. Vernon vs. Schuster, 179 Ill.2d 338, 688 N.E.2d 1172, 228 Ill.Dec. 195 (December 18, 1997)
What's in a Name? - Corporations. Shareholder of valid Illinois corporation was personally liable for corporate debts incurred while corporation was using an assumed name not registered with the Secretary of State. Hoskins Chevrolet, Inc. vs.Hochberg and Diamond Auto Construction, No. 1-96-4135, Ill. App., 1st Dist., 1st Div (January 20, 1998)
Non-Party Shareholders May Not Appeal. Overruling precedent and decisions in other Circuits, the 7th Circuit has ruled that non-party shareholders have no standing to appeal. Shareholders, like members in class action, must intervene in order to appeal. Felzen vs. Andreas, 1998 WL 17964 (C.A. 7-Ill.)
Did you Know? - FASB Delays Changes in Derivatives Rule Accounting. The FASB's controversial derivatives rule, designed to give investors a better idea of the value of derivatives held by U.S. businesses, has been postponed from January 1, 1999 to January 1, 2000. The postponement was sought by dozens of congressmen, banks and accounting firms, who needed time to adjust computer and accounting systems.
U.C.C. Financing Statements for Farming Operations Must Be Filed With Secretary of State. Effective January 1, 1998, U.C.C. financing statements for collateral used in farming operations must be filed with Secretary of State rather than County Clerk.
Tenancy by the Entirety. New legislation prohibits a transfer of property into tenancy by the entirety if the transfer is in violation of the Uniform Fraudulent Transfer Act. See 735 ILCS 5/12-112.
Joint Tenancy. New legislation prohibits a conveyance by husband and wife as tenants by the entirety, in order to defraud a creditor. See 750 ILCS 1005/1c.
Choice of Law and Forum Act. Effective January 1, 1998, new legislation permits contracting parties to choose their forum and applicable law, even without minimal contacts to Illinois, in transactions or obligations in excess of $250,000.00. See 735 ILCS 105/5-1, et seq.
Taxpayer Relief Act of 1997. The Act contains several changes benefiting businesses, including the ability to rollover a gain from qualified small business stock (I.R.C. Sec. 1045), estate tax exclusions for qualified family owned businesses (I.R.C. Sec. 502) , and an inflation adjustment to special use value for farm and other real property (I.R.C. Sec. 101).
Did you Know? Bank loans to small businesses have decreased; credit card debts incurred by small businesses have increased.