Before you start your business, you should plan how it is going to look, work, and act. Is your business going to function best as a sole proprietorship, or should you incorporate? If you incorporate, which corporate form will work best for you? What documents or agreements will you need? How do you register with the IRS, pay your local taxes, open bank accounts, get credit cards, hire employees and pay taxes?
You will enter into contracts, from your web host to your employees, vendors and customers, each transaction will involve some form of contract. Sure, you can search the web for a contract form to edit, but will you include the terms you need to protect yourself and your business?
You have started your own company so there is no doubt you are a badass. You can negotiate your own contract terms. But, will you get the best deal for your business? When we negotiate on your behalf, we take the emotions out of the discussion and focus on getting you the best deal possible.
When you choose to incorporate your business, you have taken a huge step toward asset protection. This is because the corporation is generally viewed as a separate entity from its owner or owners. A smart entrepreneur will take the additional steps necessary to protect not only the assets of the business, but also personal assets from potential creditors.
Estate planning takes asset protection one step further. Now, you will plan for the succession of your business and for the disposition of your assets to make sure that your loved ones inherit exactly what you intend for them to inherit. Estate planning also involves tax planning and lifetime gifting. Estate planning early with frequent reviews is the smart entrepreneurs’ way of guaranteeing that they maximize the benefits of their hard work.
breach of contract claims
Inevitably, the business owner will be faced with a situation where someone breaches a contract. Once a contract is breached, the non-breaching party must decide how to proceed with the situation. There are various options depending upon the type of breach and the severity of the breach. Lawsuits are expensive; this is why good drafting is a must. You may not have to sue to recover your promised bargain.
BUYING AND SELLING YOUR BUSINESS
Not all entrepreneurs will start a business from scratch. Some would rather buy a profitable going concern. Others build the business for the purpose of selling. When the parties to the sale and purchase negotiate the terms, there are many considerations which could affect the value of the business and the agreed price. Always consider the tax consequences on the transaction.