Dayton Ohio Business Lawyers
Dayton Ohio Business Lawyers
Whether starting a business venture, managing an ongoing business or terminating a business, legal issues and preparation of documents will undoubtedly be part of the process. It is important that you have legal representation as you maneuver through the legal minefields that can be found in the endeavor of being a business owner.
If acquiring a business, a proper asset purchase agreement is a must. You want to make sure that you are not acquiring the debts of the prior business owner and that the assets that you are purchasing are lien free. The delineation of assets that you are acquiring must be clearly spelled out; as well as customer lists, equipment lists, phone numbers, leases, etc. Are you keeping on the prior owner as a consultant? These are only a few of the many issues that must be properly addressed in writing when acquiring a business.
What type of business entity is appropriate? As an individual, you may elect to be a sole proprietor, a corporation or a limited liability company. If more than one person, you may choose a partnership or a corporation. Next, there are “pros and cons” in choosing between a C or an S corporation. In addition, it is important to have the proper legal documents created to establish the entity and also file the appropriate papers with the Secretary of State. If more than one person, you want to have an agreement between the owners stating what happens if any owner wants to transfer his or her interest to a third party or if any of the owners die, typically called a “Buy/Sell” agreement.
Common Legal Issues That Dayton Ohio Business Lawyers Can Help You With
Once the business is established, legal issues will continue to arise. Do you need any types of licenses, such as a vendor’s license? Do you need employment agreements? If you rent office space or equipment, leases need to be reviewed. Will there be purchase orders? If customers do not pay, you may well have collection issues. Must litigation be instituted to get paid? If so, how will you collect the money after receiving a favorable judgment? These are all common issues that may come with owning a business.
When terminating a business, you need to formally dissolve the entity. There may be documents to be filed with the Secretary of State. Notices must be provided, which may include the Department of Taxation and Bureau of Worker’s Compensation. Assets must be liquidated and creditors must be paid. If selling a business, legal documents clearly defining the assets to be sold, the rights transferred, the obligations assumed and the consideration to be paid are a must. Remaining assets must be distributed to the owners pursuant to their ownership interests.
Owning a business is rewarding and exciting in many way. However, not protecting yourself legally as you progress through this venture can be a huge mistake. Securing experienced legal representation in advance as you work through these phases will greatly reduce the risk of future legal problems.
Attorney Joseph E. Balmer has an MBA degree from The Ohio State University in addition to his law degree. He handles most of the business and corporation matters at Holzfaster, Cecil, McKnight & Mues. Click here to read his biography page. Please don’t hesitate to call us at (937) 293-2141 or email us by using our form below if you want to discuss any business related issues. Additionally, we have an emergency phone number, (937) 760-4357, that is answered by one of our Dayton Ohio business lawyers around-the-clock.
