The Cummings & Cummings Law Journal

Understanding Crowdsourced Litigation Funding Crowdsourced litigation funding, also known as crowdfunding for legal cases, is an innovative approach to financing legal actions. It involves raising small amounts of money from a large number of people, typically via online platforms, to support legal proceedings. This method has gained popularity due to its potential to democratize access

Understanding Protective Cell Companies (PCCs) Protective Cell Companies (PCCs) represent a sophisticated legal structure designed to segregate and protect assets and liabilities within a single legal entity. This structure is particularly advantageous in the insurance and investment sectors, where risk management and asset protection are paramount. A PCC consists of a core and several cells,

Understanding the Role of a Blocking Director In the intricate world of corporate governance, the concept of a “blocking director” holds significant importance. A blocking director is a member of the board of directors who possesses the power to veto certain decisions. This role is often implemented to protect minority shareholders or to ensure that

Understanding the Concept of a Siloed Passive Investment The notion of a “siloed” passive investment within an active partnership is a complex yet increasingly common scenario in today’s investment landscape. A siloed investment refers to a situation where an investor holds a passive interest in a specific segment or project of a broader active partnership.

Understanding Corporate-Owned Life Insurance (COLI) Corporate-Owned Life Insurance (COLI) is a life insurance policy that a corporation purchases on the lives of its employees, typically key executives. The corporation is both the policyholder and the beneficiary, which means that it receives the death benefits upon the insured’s passing. This financial instrument is often utilized by

Understanding the Distinction Between Proposed and Final Treasury Regulations In the realm of tax law, the distinction between proposed and final Treasury regulations is a topic that often confounds both taxpayers and professionals alike. Treasury regulations serve as the official interpretation of the Internal Revenue Code (IRC) by the Department of the Treasury, providing guidance

Understanding the “Liquidation on Termination” Clause in an LLC Agreement The “Liquidation on Termination” clause in a Limited Liability Company (LLC) agreement is a critical component that can significantly influence the financial and tax implications for the members of the LLC. This clause outlines the procedures and consequences when an LLC is dissolved, either voluntarily

Understanding the Importance of a Non-Circumvention Agreement In the realm of joint ventures, particularly those involving intricate business dealings, a non-circumvention agreement serves as a critical legal instrument. This agreement is designed to protect the interests of parties involved by preventing one party from bypassing the other to engage directly with third parties. The significance

Understanding the Concept of a Search Fund A search fund is a unique investment vehicle designed to finance the acquisition of a company by an entrepreneur, often referred to as an “entrepreneur through acquisition” (ETA). This model allows aspiring business owners to leverage the expertise and capital of investors to acquire and manage a company.

Understanding the Tax Implications of a Company Car Policy When a business decides to offer a company car policy, it must carefully consider the tax implications involved. A company car policy can be an attractive benefit for employees, but it also comes with complex tax considerations that require meticulous planning and execution. The provision of

Significant Legal Developments under the One Big Beautiful Bill Act (H.R. 1 – OBBBA 2025) On July 3, 2025, Congress enacted H.R. 1, the One Big Beautiful Bill Act (“OBBBA”), a landmark bill subsequently signed into law by President Donald J. Trump. This sweeping legislation introduces remarkable, practical changes across the federal tax code, estate

Understanding the Dynamics of a Constrained Board of Directors In a venture-backed startup, the board of directors plays a pivotal role in shaping the strategic direction and governance of the company. However, when the board is constrained, either by size, diversity, or expertise, managing it effectively becomes a complex task. A constrained board often arises

Understanding the Role of the International Chamber of Commerce (ICC) The International Chamber of Commerce (ICC) plays a pivotal role in facilitating international trade and investment by providing a framework for resolving disputes through arbitration. As a globally recognized institution, the ICC offers a set of arbitration rules that are widely used in international contracts.

Understanding FIRPTA: An Overview The Foreign Investment in Real Property Tax Act (FIRPTA) is a complex piece of legislation that governs the taxation of foreign individuals and entities involved in U.S. real property transactions. Enacted in 1980, FIRPTA aims to ensure that foreign investors pay U.S. taxes on the gains derived from their real estate

Establish a Separate Legal Entity One of the most effective ways to protect personal assets from business lawsuits is by establishing a separate legal entity. This involves creating a business structure that is distinct from your personal identity. Common structures include corporations and limited liability companies (LLCs). By forming a corporation or LLC, you create

Understanding the Non-Granter Irrevocable Trust Establishing a non-granter irrevocable trust is a sophisticated strategy for managing legacy assets, designed to provide both asset protection and tax advantages. Unlike revocable trusts, which allow the grantor to retain control and make changes, an irrevocable trust requires the grantor to relinquish ownership and control over the assets placed

Understanding State Registration for Pooled Investment Funds Managing the state registration for pooled investment funds is a multifaceted process that requires a detailed understanding of both federal and state regulations. Pooled investment funds, often structured as hedge funds, private equity funds, or venture capital funds, are subject to a complex web of legal requirements. These

Understanding the Importance of Affirmative Action Plans for Federal Contractors Affirmative Action Plans (AAPs) are a critical component for federal contractors, designed to promote equal employment opportunities and eliminate discrimination in the workplace. These plans are not merely a bureaucratic requirement; they are a legal obligation under Executive Order 11246, the Rehabilitation Act of 1973,

Understanding Unrelated Business Taxable Income (UBTI) Unrelated Business Taxable Income (UBTI) is a complex and often misunderstood concept that can significantly impact retirement accounts. It arises when a tax-exempt entity, such as an Individual Retirement Account (IRA) or a 401(k), earns income from a business activity that is unrelated to its primary purpose. This income