Without a doubt, buying a business can be a very difficult and process complex. Not only do you have to address business issues when buying a corporation, but you also need to deal with legal and employee issues. Fortunately, as long as you're careful and do your homework, buying a business can be very rewarding. Avoid committing these top three most commonly made mistakes when buying a business.
Challenges are inherent in owning and effectively operating a business. In addition to navigating the day-to-day tasks of the business, unforeseen roadblocks can leave business owners feeling worse for wear. Sometimes owning a business can feel like a lonely road, which is why forming business partnerships is so appealing. Access to greater resources, complementary strategies, financial leverage, increased creativity and collaboration are some of the top reasons people choose business partnerships.
Unfortunately, the decision must sometimes be made to end business partnerships. Although this is a difficult decision, Dunn Lambert LLC, attorneys at law, have years of experience traversing the sometimes rough landscape of corporate divorce and can become an essential resource throughout the separation.
If you are considering starting your own business, it is an exciting time in your life. However, along with the excitement, you will encounter several legal issues as you begin your enterprise. As a result, you need to hire an attorney to provide legal advice to ensure that your operations are lawful and you are protected against liability. Some of the top issues that an attorney can assist you with include the following:
If you are considering starting your own business, you likely already have the drive and ambition to make your business succeed. However, starting a business is much more complicated that simply hanging up a shingle. In addition to forming a sound business plan, and obtaining startup capital, you must address several legal formalities.
Let's face it, family businesses are important to the economy. According to Forbes, family businesses are responsible for 60 percent of the jobs in the United States and 80 percent of the new jobs created. It is also estimated that family businesses account for 50 percent of the gross domestic product of this country.
Unfortunately, family businesses also suffer their share of problems, especially when it comes to the continuation of the business, because of the intimate histories and complicated cultures inherent in many of these businesses. As a result, only one-third of them survive to the second generation.
If you are among the many Americans that own their own businesses, you may be looking to expand it, as the economic situation has improved significantly over the past seven years. However, just as when you were just starting out with your new business, there are legal considerations associated with growing it.
Is your company's framework adequate?
When you started out, you dealt with the legal aspects of business formation such as bylaws, articles of incorporation, partnership agreements and other legal documentation. For businesses that are just getting off the ground, the liability protections and business framework contained within these documents are essential to begin the process of growing.
However, as your business grows, you may be considering acquiring another business, buying out a partner or increasing your protection against liability. If this is the case, it is important to ensure that your business formation documents are adequate for your ambitions. It is therefore important to have a business law attorney review your company's documents and make recommendations on any changes that are needed.
Persons that have their own businesses, like all businesses, need a workspace from which to carry out their business activities. When faced with obtaining commercial space, business owners have the choice between buying and leasing. Since buying is often more expensive than leasing in the short term, many owners choose leasing.
Having decided to lease, many owners inexperienced in the area of commercial leases assume that this type of lease works similarly to residential leases. However, there are many important differences between the two types. If the commercial lease is poorly negotiated, it can actually mean the difference between the success and failure of the business.
When many employers hire an employee that will have access to valuable internal information, they ask them to sign a noncompete agreement. Noncompetes (also known as restrictive covenants), offer an excellent means of protecting the financial interests of the business, if done right. However, if the court does not later uphold the noncompete because it is invalid, it does the business no good. As a result, it is important for business owners to have a basic understanding of the law regarding noncompetes in New Jersey in order to avoid this problem.
Are noncompetes enforceable?
In general, noncompetes are enforceable in New Jersey, if they are reasonable in scope and duration. Since New Jersey law disfavors restraints on trade, the court will narrowly construe the agreement. In order for an employer to prove that the noncompete is reasonable, it has the burden of proving all of the following:
For many small business owners, selling the business is the goal when it comes time to retire or move on. If you are in this situation, experts recommend having a business succession plan and familiarizing yourself with the buying and selling process, so you will be able to recognize and act upon a good offer when one comes along. Recently, Entrepreneur Magazine also offered the following tips for business owners that are considering selling their business.
Keep your customers informed
When you sell your business, many buyout agreements link your compensation with your business's ability to retain customers after you have left. Since the selling of your business can disrupt the customer experience if the transition is done poorly, it important to reassure customers that they will receive the same great product or service once the business is in the hands of the new owner.
New Jersey businesses may be interested in some information about a federal law that governs their use of email in marketing or advertising their business activities. Failure to follow these regulations could land a business entity in big trouble with federal authorities, leading to large fines and other issues.
The CAN-SPAM Act governs the sending of email for commercial purposes, including both those to customers and to other businesses. Generally, this means that the email is advertising the services or product of a company, including an advertisement for the company's website content. Certain other messages dealing with ongoing transactions must only avoid misleading or false information in the message. If the rules aren't followed, each violation could bring with it as much as $16,000 in fines for each invalid email.