On behalf of Chandler and Brown, Ltd. posted in business planning on Thursday, March 15, 2018.
Maybe it started with a spark of an idea for a new product. Or, maybe you believed you could offer the public a valuable service. In either case, many people in St. Paul decide to form a business of their own. While this is a worthwhile endeavor, it is important to make sure you make legally sound decisions from the get-go, so that problems can be avoided down the road.
For example, it is important to choose the right business entity. Because a sole proprietorship exposes the business owner to liability if the business is served with a lawsuit, potential business owners may want to explore other types of businesses that will shield them from liability. It can also help to execute restriction agreements. These agreements can come in handy if there is more than one business owner. They can address restrictions on stock or membership interests, so that ownership will remain in the hands of the right people should one partner die or get a divorce. Businesses will also want to develop a succession plan in which the business will be transferred to new owners once the business owner decides to retire.
When forming a business, it can be helpful to have an attorney by your side. At our law firm, we help our clients with their business law issues. For example, we have helped businesses protect their assets, we have assisted businesses with succession planning and we have helped businesses establish liability protection We also provide assistance in purchasing or selling a business and drafting contracts.
People may be excited when it comes to business planning, but it is a process that should not be rushed into. Mistakes made early can come back to bite you should problems arise in the future. Therefore, it is important to seek the help needed to ensure no crucial issue is overlooked during the business formation process.