By Jennifer Farnsworth

Part of owning a small business is having a good understanding of the laws that effect it over time. In recent years, understanding codes and protocols is more important than ever. 

Law firms and human resource consulting agencies can be important resources to help small business owners. They can even ultimately protect their livelihood.

Martin A. Miranda, senior counsel at Tully Rinckey PLLC, said his firm has seen an increase in cybersecurity concerns, as well as pandemic-related issues faced by small businesses.

“Due to the pandemic small businesses have relied more on their online business platforms.  As more employees work from home, there has also been a significant increase in cyber attacks aimed at small businesses,” he said. 

“Hackers may find small businesses particularly vulnerable for lacking adequate technology infrastructure and data security expertise.”

Miranda said to compound problems, networks outside of the workplace may not possess sufficient security measures to prevent cyber attacks, which have become increasingly more sophisticated and targeted.  

Common methods of cyber attacks include phishing schemes, social engineering, malware, ransomware and password hacking,  said Miranda.

He has also seen an increase in small businesses reaching out on how to best follow COVID protocols, a completely new area for small business owners to have to navigate.

“I receive many questions regarding how small businesses can maintain a safe work environment for their employees as COVID protocols evolve in response to the multiple variants. Implementing these protocols can be burdensome for a small business and enforcing the protocols can often lead to differences of opinion among employees,” said Miranda.

BY RYAN MCCALL ESQ.

Cryptocurrency has become one of the newest and most prevalent investments of the last two years. As a result, the courts are now faced with the prospect of having to evaluate and distribute cryptocurrency as a marital asset during a divorce proceeding.  

What makes this new and innovative technology so complex is figuring out how much each cryptocurrency is worth.

Assuming a spouse is using a U.S.-based exchange, determining the value of an individual cryptocurrency is relatively simple. All that is needed is a subpoena duces tecum to that institution to obtain the necessary documents. Under these pretenses, the subpoenaing attorney would receive statements detailing how many funds were listed with that exchange and the assets could be easily valued as of any given date just as if dealing with stocks and investment assets.

However, what has become increasingly difficult is the rise of popular international cryptocurrency exchanges. Many of these exchanges are unregulated and will not comply with United States federal regulations. Courts should not be deterred by this in establishing a value for cryptocurrency as a marital asset.

In theory, certain cryptocurrencies—with the most popular one being Bitcoin—utilize blockchain technology, with each individual Bitcoin having a different identification number than the next. Blockchain technology has a continuous ledger of ongoing transactions that are performed and tracked. 

With that being said, there are numerous ways savvy investors can attempt to hide their funds. The most popular way for someone to do this is through a “tumbler” which can issue a separate Bitcoin or fraction of a Bitcoin from the one currently in your possession. This creates a very difficult scenario for lawyers who would be faced with the task of attempting to track down these funds.

What is beginning to take place in the court system is identifying the value of a cryptocurrency based on funds that were withdrawn from an account. 

By David A. Kubikian, Esq.

The word “succession” has become a larger part of our lexicon because HBO a few years back created an immensely watchable show about the cut-throat world of a family owned media company where hundreds of millions of dollars are at stake depending on who gets to take over when Dad leaves (or dies).  

Entertaining? Yes.  Realistic?  Maybe.  A learning moment? Definitely.  

Succession is defined as being “the action or process of inheriting a title, position, property, etc.”  Every business, regardless of size, will deal with a succession event if it is in business long enough. While family in-fighting on private jets may be reserved for the Roy family on TV Sunday evenings, the planning as to the who, when, and how your business transitions from one generation to the next (or not at all) is something that should take shape long before an actual transition happens.   

To illustrate this point, consider a few common issues that come up:

1. The Estate Planning Angle. An all too typical scenario, the business, started by one generation has a younger generation heavily involved.  One child seems to have the chops to continue to run the business once “Dad” hands over the reins (that is IF he ever hands over the reins).  Another child is involved but not as much.  

A third child has no interest in the business and in fact lives out of town. Dad’s estate plan is to treat all of his kids the same.  That is, his last will and testament or his living trust state that all assets held by the trust or governed by the will pass evenly to his “issue.”