5080 Spectrum Drive Suite 1000 East
Addison, TX 75001
Office phone: (972) 752-1928
Copyright Law Offices of Kenneth S. Harter, 2014. All rights reserved.
The term, “Business Law” covers a very wide range areas. These are some of the most common ones:
1) Business Entity:
Are you going to be in business by yourself or with a partner or partners? Should you do business as a sole proprietorship, partnership, LLC or Corporation. If you do business as a corporation should it be a “Sub S” or Sub C”. If you are going into business with others, what sort of agreement do you need to protect your interests?
A. Why do business as a corporation or LLC?
A corporation or LLC will shield you from personal liability for debts of the business. Also, there may be significant tax advantages.
B. Why do you need an agreement with partners?
If you want to stay out of Court you must have an appropriate written agreement. It should specify the rights, duties and obligations of the partners. It should specify the capital investment of the partners. It should address the question of what will happen to the business in the event one of the partners dies, wants to quit the business, gets divorced or goes bankrupt. The better your agreement addresses these issues the less chance you will be paying me to represent you in a lawsuit.
2) Relationship with Vendors, Landlords and other 3rd Parties:
I can’t tell you how often I have seen business owners sign a lease without reading it or understanding its contents. Remember, these leases are almost always written by lawyers representing the landlord, and they are written for the purpose of protecting the landlord, not you. If you sign it without knowing what is in it, you will not have the chance to negotiate more favorable terms, and you might be haunted by a future situation where there is a problem and you have no leverage. This same situation may occur with your suppliers and other 3rd parties whose relationship with you is important or critical to the success of your business.
3) Banks, Lenders, and Lessors:
I know how these people operate. If you sign an agreement with one, you’d better understand what you are pledging in terms of collateral, and what you are pledging in terms of performance. If a line of credit is critical to your success, you had better be aware of its terms and conditions.
My advice is to try to stay out of Court. But, if you find that you cannot avoid it, either because you are being sued, or you need to file suit to protect your interest, you had best have at your side an attorney who understands both the workings of the court system and the world of business.