While some may assume planning for a business’ end means that the business owners are expecting the business to fail, it really means that the business is prepared. One of the most important tools to have in place when entering business ownership is a good buy-sell agreement.
A good buy-sell agreement is effective when it answers these four questions:
Data loss and protection for businesses is often much more complicated than for individuals. A business must protect its own data, the data of its employees and the data of its customers as well as anyone else with whom the business conducts transactions.
Minimizing risk is typically a goal of the type of law that Lee practices. Sometimes insurance policies can’t provide what legal tools can provide, and other times legal tools can’t provide the value that insurance can bring to people, businesses and farmers.
While sometimes successful people just seem to be lucky, often it’s a matter of smart planning and research that leads to success. Lee helps his clients analyze their liability insurance and to decide what additional legal tools are necessary and whether the client is appropriately insured or over-insured.
It should be apparent to anyone who travels or follows the news that different states have different laws. Participants in a transaction or contract can actually outline which state’s law will apply to disputes that arise over their agreement.
Every business should be prepared for when the current leader or leaders leave, for whatever reason. Proper planning allows a business to retain it’s industry experience, despite losing top personnel.
Choosing a business name is a seemingly simple yet vital decision. The name must be “legally distinguishable,” as determined through a variety of rules and overseen in Ohio by the Ohio Secretary of State. Sometimes, additional trade names are necessary for a business.
Changes in business ownership or relationships will require a selection of documents that help outline the details.
Adding owners to a business venture will almost always require considerations beyond just legal ownership. A variety of “non-legal” issues may include time allocation, value of each individual’s work and other relationships.
It is important to evaluate these considerations and effectively work the “non-legal” aspects into the business documents. This includes updating an entity’s operational requirements, adopting a new resolution, updating bills of sale and more.
It’s often difficult to offer a value to the protection gained from certain legal tools such as an LLC. The actual cost of an LLC includes the $99 filing fee, a detailed operating agreement and the cost associated with creating that, a tax identification number and flowcharts and explanations on how to manage the LLC. An LLC also needs to be funded with assets. In northwest Ohio, establishing an LLC typically costs between $400 and $4,000.
Lee R. Schroeder is an Ohio licensed attorney with Schroeder Law LLC in Ottawa. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at lee@leeschroeder.com or at (419) 523-5523. This article is not intended to serve as legal advice, and specific advice should be […]