A Life Choice: To Start a Business?
Starting a business is something relatively major, and requires extensive thought and risk. Because of this, our firm assists clients in the formation of a legal entity that will protect their interests, both legal and financial. We help you in choosing the best entity for your business needs, including:
- Subchapter C-corporation formation
- Subchapter S-corporation formation
- Limited liability company (LLC) formation
- Partnership formation (including LLP)
Divisions of a Business
The purchase or sale of a business is a complicated process for which having knowledgable legal counsel is a must. The idea is to learn as much as possible about our clients in order to assist them through every potential decision. We are as thorough as possible, from beginning to end. There are two primary methods of transferring ownership of a business detailed below:
Asset Purchase Agreements:
Here, instead of purchasing the stock, the buyer is interested in assets of the company or taking over liabilities of certain assets. It is important to keep in mind that certain attention has to be paid to inventory, condition of assets, etc.
Share Sale Agreements
In a share sale of a business, the purchaser is buying the shares from the shareholders of the company. There are numerous tax and legal liabilities that arise with this, and thus it is generally not a preferred method of purchase.
Purchasing a business usually entails including a non-competition agreement to avoid the seller’s competition with the business after the sale is completed. These are usually limited in duration and geographic scope, and depend on negotiation of the parties, but must be reasonable in order to be upheld.