Set Up The Holding Company in Advance
Just the mere mention of an attorney makes most of us see dollar signs. However, it is important to use a business attorney when necessary. The cost of their expertise and services can often save you money in the long-run.
A business attorney can help you to foresee problems and head them off before they become a big, and often expensive, issue for your business. Establishing a relationship with a business attorney can be a good step in starting and growing a business. They can review what you are doing with your business and let you know about any legal ramifications you might not have thought about. You might want to consider a business attorney as one of your business advisers.
What Does a Business Attorney Do?
Help to ensure that your business is in compliance with standard business practices and laws. Assist you in complying with tax laws and regulations. Help you prepare business documents and contracts to make sure they are legal and in your business's best interest. Provide you with confidential advice on personnel, financial and legal issues. Provide negotiation skills if you wish to sell your business or merge with another business. Assist you in obtaining permits and licenses required to conduct your business.
Choosing a Business Attorney
Selecting the best attorney for your business requires that you do some research. You might want to ask other business owners in your area who their attorney is. Find out who they like, do not like, and why. Call around to possible attorneys and see if they will offer you an initial consultation to help you to make a decision on the best attorney for your business. Once you have met with a possible attorney for your business evaluate if you would be comfortable working with them. Once you have found a good candidate you should check with your state bar and see if the attorney you are considering is in good standing with them.
While the services of a business attorney can be expensive, the costs of cleaning up a mess caused by not using their services can be much higher. If you start out with a business attorney and allow them to help you set your business up correctly, then the cost of your business attorney can actually save you money over time.
The question you should consider is not if your business needs an attorney but if you can afford to start a business without one.
Establish a Family Trust
Spendthrift trust, are an effective way to protect inheritances and other windfalls from ending up in your creditors hands. This is how it works, the trust is set up with you as the beneficiary and another party, could be your spouse, a lawyer, as long as it is one trusted person as your trustee. Worked into the trust states that the assets can't be used to pay creditors. People who intend to or will give you money for example;(your parents) would give it to the trust instead. Spendthrift trust, are an effective way to protect inheritances and other windfalls from ending up in your creditors hands. This is how it works, the trust is set up with you as the beneficiary and another party, could be your spouse, a lawyer, as long as it is one trusted person as your trustee. Worked into the trust states that the assets can't be used to pay creditors. People who intend to or will give you money for example;(your parents) would give it to the trust instead.
Tap Into Your Home Equity
If you own a home, and have a strong credit rating, you might consider tapping into your home equity. This could help you cover your start-up costs, however, it increases the amount you owe on your home.
Sell Some Stuff
If you've got things around your house that you know you could live without, consider selling them to fund your start-up cost. Try selling your things in a yard sale, on Craigslist, eBay, or your local newspaper classifieds. If you put forth the effort, you'll probably end up with a decent chunk of cash. The benefit to this method is that you won't owe anyone anything if your business doesn't do as well as you'd have hoped.
Take Out a Loan
If you're unable to fund the start-up yourself, and can't or don't want to ask family members and friends for help, you might consider taking out a business loan. If you're interested in a bank loan, you need to pay a visit to your local bank and schedule an appointment to speak with someone in more detail about the services and loans provided. If you're not looking for as high of an amount, you might consider using a website such as Prosper, to obtain a smaller, private loan.
Equitable answers to these questions, and others, are rarely straightforward and seldom easy. To act in the best interests of the business, the shareholders, and clients, the prudent course of action is for partners to seek expert legal guidance and assistance in ending a partnership agreement.