Check out documents like the current balance sheet, profit and loss statements (past 5 years'), tax returns (for income, unemployment, and sales tax, for the past 5 years), audited financial statements, accounts payable and receivable, and more.
Your contract review lawyer will review mortgage loan documents, a plot of land survey, title, title insurance, deed, bill of sale, and the legal description of the property. Purchase Agreements Purchase agreements are used to transfer property from one person to another.
Having your legal documents or contract reviewed by an attorney before you sign ensures your interests are protected. Any new legal document with the potential to have a substantial impact on your finances, time or responsibilities should be reviewed. Document review is also recommended any time you make changes to a legal document or your ...
Dec 06, 2019 · When You Might Need an Attorney for Business Startup. The most common reasons for needing an attorney are: Navigating the many forms and requirements of legal documents, like incorporation documents, that are involved. Assurance the startup is being done right. Enabling you to focus on other aspects of the business so you don't have to spend ...
This is your opportunity to review and verify the business model, customer base, products and services, as well as labor, materials and operational costs. Company’s articles of incorporation and amendments. Company’s bylaws and amendments. Summary of …
Meeting with a small business attorney is an important way to get your business off to a good start and minimize future risks. Here are questions to ask at your first meeting. New entrepreneurs have their hands full, making plans, developing products and services, and lining up financing.
A business lawyer can explain how to start a business and answer your business law questions. But more importantly, a lawyer can identify the risks you face and help you minimize them. When you meet with your lawyer for the first time, it’s a good idea to have some questions in mind.
Before starting a small business, you must decide how your business will be structured. If you do not form a formal business entity, your business will either be a sole proprietorship (with one owner) or a general partnership (with more than one owner). Legally, you and your business will be the same “person,” so if your business has debts ...
If you do not form a formal business entity, your business will either be a sole proprietorship (with one owner) or a general partnership (with more than one owner). Legally, you and your business will be the same “person,” so if your business has debts or is sued, you are personally liable for those obligations.
Federal laws range from anti-discrimination laws to health and safety regulations to wage and hour laws. You may need policies and procedures, handbooks, and training to ensure that you don’t inadvertently violate them. You must also comply with state laws relating to such things as the minimum wage.
All small businesses potentially have trademarks that they use to identify the business and distinguish it from others. Your business name, logo, labels, slogans, and packaging can all be trademarks, but you must take steps to protect them. You may decide to register a trademark with the U.S. Patent and Trademark Office.
Contracts protect your business by describing the rights and responsibilities of the parties to the agreement. A well-written contract can reduce the number of disputes that arise, ensure that you get paid for the work you do, and provide a clear remedy if one party doesn’t hold up its end of the deal.
Copies of agreements relating to options, voting trusts, warrants, puts, calls, subscriptions, and convertible securities. A list of all states, provinces, or countries where the Company owns or leases property, maintains employees or conducts business.
A Certificate of Good Standing from the Secretary of State of the state where the Company is incorporated. Copies of active status reports in the state of incorporation for the last three years.
Any " work for hire " agreements. A schedule and copies of all consulting agreements, agreements regarding inventions, and licenses or assignments of intellectual property to or from the Company. Any patent clearance documents.
All loan agreements, bank financing arrangements, line of credit, or promissory notes to which the Company is a party. All security agreements, mortgages, indentures, collateral pledges, and similar agreements. All guarantees to which the Company is a party. Any installment sale agreements.
A schedule of all subsidiary, partnership, or joint venture relationships and obligations, with copies of all related agreements. Copies of all contracts between the Company and any officers, directors, 5-percent shareholders or affiliates.
The only thing you will have to worry about is signing when the time is right. So, the short answer to this question is – Yes. You need an attorney for reviewing contracts.
These are usually pretty standard, but it is important to have a lawyer review these contracts because they often involve a major purchase. Your contract review lawyer will review mortgage loan documents, a plot of land survey, title, title insurance, deed, bill of sale, and the legal description of the property.
Contract review is the process of reading and understanding a contract on a line-by-line basis. It is a deep analysis process to make sure the contract is fair. More importantly, you need to make sure it doesn’t include any loopholes that could work against you.
Purchase agreements are used to transfer property from one person to another. This may be real estate, vehicles, or any other tangible asset. Just like with the real estate contract review, your contract review analysis will include any necessary titles, insurance, deeds, loan documents, and the bill of sale.
A contract is a legally binding agreement between you and another party. Contracts tend to pop up in both business and personal matters. Considering a contract is a legally binding piece of paperwork.
The attorney can review any contract, agreement or document you choose, including those that don’t require your signature. Your attorney will advise you if any additional special review is needed. ATTORNEY ADVERTISEMENT: This portion of the LegalZoom website is an advertisement. This portion of the LegalZoom website is not a lawyer referral service.
Legal Document Review—Have Your Documents or Contract Reviewed by an Attorney. Having your legal documents or contract reviewed by an attorney before you sign ensures your interests are protected. Any new legal document with the potential to have a substantial impact on your finances, time or responsibilities should be reviewed.
LegalZoom does not endorse or recommend any lawyer or law firm who advertises on our site. We do not make any representation and have not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. The information contained on this site is not legal advice.
Make sure your interests are protected by having your legal documents or contract reviewed by an attorney through LegalZoom. The attorney can review any contract, agreement or document you choose, including those that don’t require your signature. Your attorney will advise you if any additional special review is needed.
The flat-fee service covers documents up to 25 pages in length. For documents longer than 25 pages, the firm will give you a quote that includes your 25% legal plan membership discount.
Jean Murray, MBA, Ph.D., is an experienced business writer and teacher. She has taught at business and professional schools for over 35 years and written for The Balance SMB on U.S. business law and taxes since 2008.
Whether you need an attorney to start your business depends in large part on what legal type of business you're starting. The simpler your business, the less you'll need an attorney.
Consider hiring professionals to aid this process. 1. Review and verify all financial information. This includes audited financial statements over the last three years.
A due diligence checklist should cover several aspects of the prospective business, including financial documents, legal issues, operations, employee relations, as well as all assets, products and customer data. Due diligence is a complex process and should not be conducted without the assistance of your accountant and attorney.
One of the final phases of buying a business is due diligence. By this point, you’ve made an offer to purchase a business. You’ve already met with the owner, reviewed the financials and the opportunity seems ideal. After negotiating back and forth, the two of you finally agree on a deal. Yet, the deal is subject to certain contingencies before it is finally closed.
Please answer a few questions to help us match you with attorneys in your area.
Step one in your due diligence is learning all you can about the financial condition of the business. Check out documents like the current balance sheet, profit and loss statements (past 5 years'), tax returns (for income, unemployment, and sales tax, for the past 5 years), audited financial statements, accounts payable and receivable, and more.
Your purchase may include physical assets such as equipment and inventory. Make sure the equipment is in good working order. Consider hiring an expert to check it for you. If some equipment is being leased, look at the terms of the lease and make sure you have the right to take it over.
Most businesses occupy leased space. You need to get a copy of the lease and review it carefully. How long will the lease last? Will you have an option to renew? Are the terms and restrictions acceptable?
If the business is owned by a corporation or LLC, there are two scenarios. One is that you're buying the assets of the business. The other is that you're buying the business entity itself (which owns the assets). Buying the assets is usually the better option for the buyer.
Even after you've carefully investigated the business, other surprises may be lurking. Have the current owner personally guarantee that the information you have is complete and accurate. You can put this in the purchase agreement under the heading, "Representations and Warranties."
Don't pay the full purchase price at closing. Arrange for at least part of it to be paid six months or a year down the road. That way, if you suffer a loss because the owner failed to disclose crucial information (a debt, for example, or a tax liability), you can deduct the money from what you owe.
Compile the following documents in preparation for your business sale: 1 Profit & loss statements for the current and past 2-3 years 2 Current balance sheet 3 Cash flow statement 4 Business tax returns for the past 2-3 years 5 Copy of the current lease 6 Insurance policies 7 Non-disclosure/confidentiality agreement 8 Personal financial statement for the buyer to complete 9 Executive summary of overview of the business 10 Detailed profile describing the business 11 Any additional documentation to substantiate the financial representations 12 Professional certificates 13 Supplier and distributor contracts 14 Employment agreements 15 Offer to purchase agreement 16 Note for any seller financing
In order to get started in making an accurate assessment of your business, you’ll need to prepare your financial statements, ideally, for the past two to three years. Hopefully you’ve been keeping your business records in order.
A professional CPA can help you identify any gaps or shortcomings that could be improved. Moreover, buyers often place more weight on financials that have been scrutinized by a qualified accounting professional. Professionally audited financials often have more validity and the potential to increase your asking price .
Preparing your financials will help you develop improvement strategies and increase the value of your business. Getting your financial records and reviewing them for accuracy will not only help you in determining a fair asking price, it will help you identify certain pitfalls and develop improvement strategies.
Buyers will expect to see certain documents that show your business is profitable and a good investment. Taking the time to collect and organize the right documents will make your business more appealing to potential buyers.
Bob House is the President for BizBuySell.com, BizQuest.com and FindaFranchise.com. If you’re considering selling your business, it’s important to remember that prospective buyers are looking for clear, objective facts that will convince them that your business will be a profitable investment for them. Although they may initially be attracted ...