FORMING A NEW BUSINESS
- Whenever a new business is being conceptualized that is the best time to meet with an attorney.
- An attorney can assess your business plan, the services the business will provide and advise clients of the best business structure for their particular needs.
- Many times in order to avoid potential personal liability and lawsuits, a business can be incorporated in a particular way to separate the owner’s personal assets from that of the business.
- A lot of businesses do not organize at the outset, instead the business owner focuses on growing and they begin to prosper - and then realize down the road that they did not take the necessary steps once a potential problem occurs.
WORKING WITH OTHERS
When two people or more decide to enter into business together, a whole host of issues can come up - such as:
- Who owns the name or intellectual property? How are profits/losses split?
- Who is responsible for which tasks? How are disputes resolved?
Many clients call an attorney because one party to an agreement hasn't held up their end and they want
to know what can be done. The first question an attorney wants to know is whether there is a contract
in place? If so, the attorney must review the contract because many times contracts will limit the rights
and remedies available. This is why it is always a good idea to have an attorney write or review a contract before signing and to never use a contract template found online. Contract templates are never a good idea for a variety of reasons, including the main reason previously stated: contracts often dictate the rights and remedies of the party and that should always be tailored to you and your needs.
Here are just a sample of additional reasons why template contracts are a bad idea:
- The templates may be drafted by non-attorneys
- Have clauses that don't suit your needs
- Have gaps of protection for your particular purpose
- Are not even the correct contract, or
- Just plainly badly written leaving you exposed to a variety of legal problems
THREATENED WITH A LAWSUIT
This may seem obvious, but those who have tried to handle threats of lawsuits through negotiations on their own, usually still have to turn to a lawyer in the end, now with less time to prepare.
by Devon Landis, Esq.
DISCLAIMER: This is for informational purposes only and not exhaustive of all aspects of the law on this topic and it is not to be considered legal advice on any particular set of facts or circumstances, you should contact an attorney for advice on specific legal problems.