On behalf of Brewer, Pritchard & Buckley, P.C. posted in business formations on Friday, August 24, 2018.
Texans are known for their ingenuity and fearlessness when it comes to new endeavors, so it is no surprise that many will want to start their own business or purchase a business to make it bigger and better. With that come certain realities that could get lost in the shuffle of putting all the pieces in place to formulate or run the business. That includes adhering to regulatory requirements, structuring the business to adhere to the law, and having the proper insurance among many other factors. A law firm that specializes in helping aspiring businesspeople to reach their goals while following the legal requirements is essential.
The structure of the business is the first important decision that must be made. There are many factors that go into what type of business label to use. A sole proprietorship, partnerships, a limited liability company, an S corporation or a C corporation are all alternatives that should be assessed. Choosing the wrong one for the specific needs can cause financial and personal problems that can be difficult to undo, so it is wise to have legal advice from the beginning.
For those whose companies are taking part in a merger or an acquisition, there are other concerns that must be addressed. A merger can help a company take their business to the next level by joining with another business in which there are compatible pieces. Acquiring another company can spark growth and change the business’s outlook in the present and future. Divesting oneself of a company can free the owner to move on and do something else, or simply retire.
Such factors as selling stock and assets, writing contracts and negotiating, adhering to the rules of the Securities and Exchange Commission, performing due diligence, crafting confidentiality agreements, having a letter of intent, and closing the transaction will all be part of the process. Since these can be complex, legal help is a must. A common mistake among people who are involved in these transactions is to miss a step or several steps and it can cause personal and legal issues, a law firm experienced in all aspects of business formations should be contacted from the beginning.