America’s SBDC Blog

A “Forbes 100 Best Websites for Entrepreneurs”

Desperate Measures from The Legal Edge

May 14, 2012

(As seen in the SmartCEO Magazine, April 2012)

Business is hard, and companies are reaching for results. In the process, some businesses take dangerous shortcuts and risk dire consequences.

Government gold rush: As business has dropped off in the private sector, more and more companies are lured by the prospect of easy money at the government trough. One of the prime targets is work set aside for minority and disadvantaged businesses. The problem is that plenty of companies that don’t qualify want to get into the act.

All too often, businesses that don’t qualify want to set up new companies with a person – who meets the standards – as a figurehead. These businesses don’t really want this person to run the new company. So they ignore the rules or attempt to disguise the real situation. (more…)