» Collaborating with Others to Form and Operate a Business
What are the most important issues that business persons fail to address adequately at the outset of a commercial venture?
During the optimistic stage of starting a new business enterprise, most business persons fail to adequately address what will happen if a significant unexpected adverse event occurs to the business or to one of the owners of the business.
Our firm can assist you in addressing these issues in a buy-sell agreement or by appropriate terms included in a limited liability company agreement or a stockholders agreement. It is important to address death, disability, divorce, dissolution and deadlocks before any of these terrible events actually occur.
What is the first step when two or more persons or businesses desire to work together to commercialize a new business idea?
The first step in any joint business venture is for one or more of the parties to meet with an experienced business attorney and a good CPA to consider the multiple options available for the enterprise. This should be done even before the parties attempt to draft a letter of intent. There are many legal, tax and accounting issues to consider at a preliminary level first.
Thereafter, the parties should do their best to outline the key business terms on their own before returning to consult with their attorney(s) for the preparation of a formal letter of intent or term sheet. Our firm can assist you with the preliminary discussions about the new business idea and with the preparation of a formal letter of intent or term sheet.