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Mitigating Risks In Starting Your Small BusinessIn this article, you will learn…

  • What proactive measures you can take to protect yourself against potential litigation,
  • If an attorney can help you find a location for your business, and
  • Why you should hire an attorney to help you start your small business.

Can I Sell My Business If I’m Sure My Personal Property Is Not At Risk?

As long as you’re not the one who’s personally causing the issues in the business, you should be able to sell your business.

We also tell people to have a really good insurance policy, because you don’t want to lose the assets of your company.

What Proactive Measures Should We Take To Protect Ourselves Against Potential Litigation Or Other Issues That Arise From Within Or Outside Our Business?

The best thing that you can do to protect yourself against any potential litigation or other issues is to not wait until there’s a problem to go to your attorney.

Your attorney should have the corporate books and records and will try to keep you abreast of any changes in the law that might affect you, but sometimes we don’t know what’s going on until a client calls us. Talk to your attorney about setting something up to protect yourself as best you can.

One good way to protect yourself when you have a corporation or an LLC is to have a good shareholder’s agreement or operating agreement. You want to make sure that, between the shareholders and members of your company, all of your obligations are going to be taken care of ahead of time.

If you are considering going into negotiations with another company about buying his company, you want to make sure that you have a non-disclosure agreement set up. Going into negotiations without a non-disclosure agreement could be detrimental to your company. Once your competitor knows all of your clients’ names and what they’re paying, they have a means of taking those clients. That’s advice that your attorney can only give you if you keep them apprised of your intentions with the business.

Your attorney can also advise you on what type of business entity to use. If you want to operate a bunch of real estate, for example, you would want to use an LLC rather than an S-Chapter corporation. An LLC would enable you to do some fancy things with the tax laws to limit the liability.

If you don’t consult with your attorney and you choose to set up a C-Chapter corporation, you may be looking at a tax situation you hadn’t anticipated double taxation if, at the end of the year, the corporation has left $100,000 in the bank, they will first be taxed on that $100,000. Then, the funds paid to you and the shareholders are taxed when the profits are distributed.

Can Your Firm Help In Forming Our Business As Well As Finding Commercial Property To Buy In New York?

New York is one of the few states where an attorney can act as a realtor or real estate broker. An attorney can get their own broker’s license, as well, but they can’t act as a broker. I wouldn’t typically do that unless I happen to know of a property that a client might be interested in. I’ll let the client know about the property, but I wouldn’t act as a broker in that instance.

However, we would certainly be able to help to form a proper business formation or corporate formation to use.

Forming A Small Business Seems Simple, Can I Just Use The Forms On The Legal Web Service?You can absolutely use forms on the Legal Web Service to help you form a small business. However, in most cases, these forms are found lacking. They throw everything in the kitchen sink in those forms, but it doesn’t necessarily conform to what it is you’re doing or the business that you would like to start.

If you have more than one shareholder, it doesn’t really help because you would need to sit down with all of your shareholders – all the people that are part of the business – to determine what all their objectives are. Based on their objectives, you would need to figure out what type of entity they should be. Once you figure out what type of entity you want to be, you need to do a good shareholders’ agreement or operating agreement.

With the guidance of a skilled attorney for Real Estate Law Cases, you can have the peace of mind that comes with knowing that we’ll make it look easy.

For more information on Real Estate Law Cases in New York, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (631) 459-4424 today.

Michael H. Fier, Esq.

Call For A Free Consultation (631) 459-4424

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