what questions should i ask an attorney when buying out a company

What are the questions to ask when buying a business?

If you are still not convinced you need an attorney, consider the following ten questions and how you would answer them. 1. What will happen if there are legal considerations not mentioned by the previous owner such as building or health code violations? 2. Can I be held responsible for debts made by the previous owner? 3.

What questions should I Ask my attorney before hiring a lawyer?

Apr 09, 2015 · Ask a few questions about the lawyer's view of your case or situation. Five: What are the likely outcomes in my case? Lawyers are not fortune tellers. They should never guarantee a specific result. However, they should be able to give you a frank preliminary assessment of how your case is likely to play out. Six: What will the fees and expenses be?

What should I ask a small business attorney at my first meeting?

Feb 24, 2020 · Questions to Ask When Your Company Is Being Acquired 1. Will My Position Continue to Exist? One of the most important questions and certainly the most pressing one for individuals is if your position at your job will continue to exist. If your position no longer exists, you need to ask about your options and next steps.

What advice do I need when buying a business?

Mar 13, 2018 · 10 Questions to Ask a Real Estate Attorney 1. Are you certified and licensed (and where)? 2. How long have you been practicing real estate law? 3. Have you handled cases very similar to mine? 4. How much do you charge and what is the fee structure? 5. Will anyone else from your staff work on my case? 6. Can you provide good references? 7.

What questions to ask when buying an existing business?

That's why asking the following questions is so crucial!Why are You Selling? ... How Long Have You Had the Business For? ... Why Did You Originally Buy It? ... What's the Annual Gross Revenue? ... How Much Profit Have You Made Over the Years? ... How Much Are You Asking? ... How Did You Arrive at the Purchase Price? ... What Assets Am I Getting?More items...•Jun 22, 2020

What are good questions to ask lawyers?

Questions to Ask Your Lawyer During a Consultation1) What kind of experience do you have with similar cases?2) What would be your strategy for my case?3) Are there any alternatives to going to court?4) What are my possible outcomes?5) Who will actually handle my case?6) What is my role in my case?More items...•Jan 29, 2017

What should I ask a corporate lawyer?

General QuestionsHow long have you been practicing law?What do you specialize in?What are your main roles and duties? What goes beyond that scope?How do you bill?What companies do you generally work with? ... Are you experienced with startups?Are you familiar with the laws of incorporation in my specific state?

What are five things you should ask your lawyer?

Below are ten questions to ask your potential lawyer.How long have you practiced law? ... What type of cases do you generally handle? ... Who is your typical client? ... How many cases have you represented that were similar to mine?More items...•Apr 13, 2018

How do I prepare for an attorney interview?

If you are interviewing virtually, all of these tips apply.Do your research. Lawyers are known for being good researchers. ... Be presentable and dress your best. ... Come prepared to ask questions. ... Be personable and show enthusiasm. ... Be genuine. ... Promptly send a thank-you note.Oct 28, 2020

What you should know before you talk to a lawyer?

10 Things You Should Know Before Contacting a LawyerHave Your Documents Ready. ... Research the Elements of Your Case. ... Don't Call if You Just Have a Question. ... You May Not Speak to a Lawyer Right Away. ... Do Not Ask the Legal Support Staff for Advice. ... Don't Provide Too Much Information. ... Answer the Lawyer's Specific Questions.More items...•Feb 6, 2020

What is a good question to ask a judge?

Good questions to ask the judge include the following:“How do you like being a judge?”“How did you decide to become a judge?”“What was the most important thing that helped you become a judge?”“What do you expect from your clerks?”“What are you looking for in clerkship applicants?”“What is your mentorship style?”More items...

How do you answer corporate law questions?

1:358:50How to answer: Why commercial law? - YouTubeYouTubeStart of suggested clipEnd of suggested clipDay if you're asked about them later there's a famous quote that. Goes. If you remember what. You'veMoreDay if you're asked about them later there's a famous quote that. Goes. If you remember what. You've. If there you go if you tell the truth you don't have to remember.

Do I need a lawyer to start a business?

Sole proprietorships, being the simplest business entity, can easily be launched on your own without a lawyer. You don't have to file incorporation documents to start operating. Although, you may need to file an assumed name certificate locally, obtain all licenses and permits, and get an EIN from the IRS.Apr 4, 2019

What do most lawyers charge for a contingency fee?

Typically the contingency rate free ranges from 33%-45% of the recovery. A contingency fee agreement is a payment arrangement that enables injured victims pursuing legal recourse to have legal representation, even if they do not have the financial ability to pay a lawyer out of pocket.Aug 3, 2021

How do you answer a lawyer question?

Listen carefully to the questions you are asked. If you don't understand the question, have it repeated, then give a thoughtful, considered answer. DO NOT GIVE AN ANSWER WITHOUT THINKING. While answers should not be rushed, neither should there be any unnaturally long delay to a simple question if you know the answer.Apr 22, 2015

How do you answer a law question in an interview?

Below are some common legal interview questions—plus suggestions on how to approach them.Tell me a little about yourself. ... What attracted you to our firm/organization? ... Can you describe a challenge or conflict you have faced at work and how you overcame it? ... What is your biggest weakness? ... Do you have any questions for us?Mar 20, 2021

Why is buying an established business appealing?

Buying an established business is appealing because it may be easier than starting from square one. However, the benefits of buying an existing business can only be realized by taking the necessary steps and making the right inquiries.

Why is buying a small business a good idea?

Buying small businesses could be a smart choice for would-be entrepreneurs because of the number of available small business. According to the Small Business Administration, since 1982, the number of small businesses in the US has grown by 49%. Buying an established business is appealing because it may be easier than starting from square one.

What happens if you pay more than you can afford?

If you pay more than you can afford and the business fails to make the necessary profits, you could lose it all. The aim is to pay a fair price that you can afford and won’t result in you being financially strained.

What should a lawyer review with their clients before trial?

Every lawyer should review with their clients the possibility of a negotiated resolution prior to trial. In criminal matters, for example, you may be able to get a good plea bargain. In civil cases, your lawyer might propose mediation, a settlement negotiation process involving a neutral third-party.

Why is it important to choose the right lawyer?

Choosing the right lawyer is a very important decision—whether you were in a car accident, have a medical malpractice claim, or find yourself the target of a criminal investigation. Referrals from friends or co-workers can be great, but you need to do your homework to make sure you have the right attorney for the job.

What is contingency fee?

In cases where you are suing for monetary damages, the lawyer may represent you for a “contingency fee.”. This means the attorney gets paid a portion (typically one-third) of the amount you receive after a successful trial or settlement. Make sure you discuss expenses as well as attorney fees.

How can a lawyer save you money?

Your lawyer can often save you money by delegating routine tasks to firm employees who charge a lower hourly rate. However, your lawyer should be involved in all key aspects and decisions of your case, or should explain to you why a colleague can handle some important part of the matter just as well.

What is the importance of having a lawyer?

Getting a lawyer with the right legal background is essential, but it is also important to know whether your attorney has experience with the judges who will likely preside over your case. If yours is a criminal matter, it is important to know if your lawyer knows the local prosecutors. This courtroom experience can greatly enhance your lawyer’s ability to evaluate the likely outcomes in your case and give you advice that you can rely on.

How to discuss case strategy?

In discussing case strategy, your lawyer should give you an estimate of how much time it will take to get to a resolution. Keep in mind that your lawyer does not control the pace of the process and cannot make any promises about when it will be over.

What is a conflict in a lawyer?

If the lawyer’s representation of prior or existing clients would limit the attorney’s ability to represent you, there is likely a conflict. For example, if you want to sue a hospital that the potential lawyer regularly represents, there would be a conflict. A conflict might also arise if the attorney you are interviewing has already been hired by ...

What are the legal ramifications of starting a business?

There are several legal ramifications of starting a business. It can lead to issues related to liability, copyright, employee rights and everything in between. So one of the first steps you should take as you work to get your business off the ground is speak with an experienced business attorney.

What happens if a business has an outside investor?

If your business has any outside investors, it could impact the type of corporate entity you’re able to establish for your business. Specifically, you need to be sure that the structure provides a corporate shield for your investors as well as yourself.

What is a corporate shield?

Only by establishing a corporate entity and following the necessary corporate laws and regulations do small business owners enjoy what’s commonly known as a “corporate shield” that protects their personal assets and ensures only their business assets are at play.”.

What is the best way to avoid costly issues down the road?

Making Sure You’re Covered with Insurance. Insurance can help you avoid costly issues down the road. Speak to your legal representative to discuss what types of coverage you might need or at least benefit from, including coverage for workplace injuries, data breaches, or non-injury claims made by employees or customers.

Who is Ben De Leon?

Ben De Leon is the President of De Leon Washburn & Ward, P.C., where he has served as general counsel to some of the fastest growing companies in Texas. As an experienced business lawyer, he recently spoke with Small Business Trends about some of the most important legal issues that new entrepreneurs should discuss when getting started.

Can a business attorney help you make sure your name of choice is available?

And you also need to be sure that you’re not infringing on any existing copyrights or trademarks with your name choice. So a business attorney can help you make sure your name of choice is available and walk you through the necessary paperwork.

Do you need a lawyer for a business?

Once your business starts working with vendors, suppliers, clients, or any other third parties, you’ll need written agreements in place to ensure that all parties involved know what to expect. A lawyer can help you draft specifics or at least walk you through the creation of some templates that you can use in common situations.

What does merger mean?

A merger may mean your entire business will move to a new location. This could mean a different commute to work, but it also might mean a larger, better office space.

What happens when two companies merge?

Mergers occur when two businesses decide to join together, becoming one company. As the businesses consolidate into a single entity, it can mean many changes and new stresses for employees. We’ve compiled a list of the top questions to ask when your company is being acquired to ensure everyone in your business understands what to expect.

What happens when you share a role with another person?

Sharing a role with another person or moving to a larger team may alter what’s expected of you. If your team is downsized during a merger, you may be expected to take on more responsibilities. You may also want to ask about how your role might change during the transition period.

What happens if your pay is affected?

If your pay is affected, it’s up to you, and the legal agreements in your contract, to decide if you want to continue working there. Make sure you fully understand any non-compete agreements you may have signed that could prevent you from applying to work for a competitor or from starting a competing business.

How does Jordan work?

She specializes in clear and concise writing that helps businesses conquer their online messaging. Through human-centered content, she aims to delight both human readers and Google bots. Spark an immediate and detailed conversation by mentioning Mad Men or Game of Thrones.

Why do businesses merge?

Reasons for Mergers. Businesses may merge to acquire a larger piece of the market and eliminate competition. A large business may also acquire a smaller niche business with expertise in a certain area if they want to sell a new product but don’t want to spend money and time breaking into a new market. There are a number of reasons why ...

Is it bad to change your pay after a merger?

A change in pay isn’t always a bad thing . You may be entitled to a raise during or after the merger, especially if you are asked to take on new responsibilities or if your position at the company changes for the better.

Why is it important to have an attorney on staff?

They may also have one on their staff. This is helpful because it means the attorney’s office controls the closing process. There is no need to coordinate with any other office, and this can simplify and speed the closing process. It might also lessen the expenses based on communications.

Why is experience important in real estate?

In real estate law cases, the experience of the attorney or law firm is important. More complicated real estate matters suggest having a more experienced legal presence. You may have to pay more for experience, but the value of your investment in such cases probably warrants the higher expense. The potential financial loss in larger real estate ...

Why are references important?

References are important, too. You want to know if the attorney has done a good job for other clients. You want to be given a list of references who are available for you to contact whether you call them all or not. The attorney should be confident and successful enough to provide you with a list of satisfied clients who want to speak well of them.

Do I need a real estate attorney?

If you are considering buying or selling real estate, you may want to have a qualified real estate attorney represent you to make sure there are no legal complications that would interfere with the closing process or any transactions involving you and the other party. An investment in real estate is a large commitment, and you want to make sure you have the best protection possible to prevent any serious complications.

Is it ok to fill out all real estate forms?

If the answer is filling out all the real estate forms, this is probably not the right attorney for you. This is not the kind of service you need. Filling out standard forms is not enough because not all real estate transactions are the same. Many are not standard.Ask if the attorney plans to do due diligence for you and will spend ...

Is real estate a unique deal?

Every real estate deal is unique with its own set of circumstances and potential problems. Your case is no different. It is wise to find an attorney who is familiar with those types of problems and who knows how to prevent them from happening.

Do I need to be certified to be an attorney?

If the attorney is recommended by a referral service, he or she will no doubt be certified. If you find an attorney be some other method, you want to make sure the attorney is licensed in the state in which the property is located, not just the state where you live, invest, or are incorporated.

Financial

Are the company’s revenues rising or declining? If declining, what is needed to improve them?

Legal

Is the business involved in any ongoing lawsuits, and if so, what are the details? Has it been involved in lawsuits in the past, and if so, what was the outcome?

Market

What is the target market for the business? Is that market growing, stable or shrinking?

Assets

Does the company own any intellectual property, proprietary processes or exclusive products? If so, will the ownership rights transfer to you?

Suppliers

Who are the company’s suppliers? Are the suppliers willing to transfer the existing contracts to you when you take over the business?

Employees

How do employee wages compare to the industry average and to average wages in the local marketplace?

What to do after death?

Once you sit down, talk through what you want to be done after your death, provide your lawyer with the right documents, and ask what else should be included in the will. This will help you figure out which provisions should and shouldn’t be part of your will.

What is a will?

A will is one of the most important documents you’re going to make in your lifetime, even if you’re not necessarily a millionaire. As long as you’ve got assets to leave behind to your loved ones, a will can help ensure that these are distributed according to your wishes after your death. Estate Planning. By Lawyer Monthly Last updated Sep 8, 2020.

What is a trust after death?

A trust is designed to function during your life and after your death. A will provides for the distribution of all of your assets upon your death. It only provides instructions for what will happen to your assets after you die.

Why are living trusts so popular?

Living trusts offer a variety of benefits, which is why they have become so popular. Living trusts allow your estate to avoid probate. By doing so you avoid the costs associated with having a will probated, but you also avoid the delay associated with probate. It can take months for a last will to be probated, but when you create a living trust, ...

What is a revocable trust?

A revocable trust (one that can be altered during your lifetime) does not avoid estate taxes that are applied by your state or the federal government. A special kind of living trust called an AB trust passes assets directly from one spouse to another and avoids estate tax. Living trusts do not pass through probate, ...

What is a living trust?

A living trust is a document that allows you to place assets into a trust during your lifetime. You continue to use the assets, but they are owned in the name of the trust. You name a trustee who is responsible for managing and protecting the assets in the trust. After your death, the assets in the trust are distributed to ...

Do you need a power of attorney for a living trust?

Living trusts have all of your assets already placed in the ownership and management of a trust, so that should you become incapacitated, they are already being handled for you. Most attorneys do recommend you also draw up a power of attorney which will authorize someone else to make legal and financial decisions on your behalf ...

Can a living trust include all of your assets?

Living trusts cannot include all of your assets since some are not eligible to be owned by a trust. The other problem with a living trust is it can only control the assets you specifically transfer into it, so if you forget to change ownership of something like a bank account, it won’t be covered by the trust.

Do you have to pay upfront for a living trust?

The living trust cost can also be seen as a drawback. You need to pay upfront to have the document prepared and make sure the trust is being managed.

Structuring Your Business

See more on smallbiztrends.com

Protecting Your Personal Assets

Choosing A Name

Protecting Investors

Establishing Ownership Responsibilities

Creating Internal Bylaws

Adhering to Compliance Practices

Making Sure You’Re Covered with Insurance

Creating Vendor Contracts

Navigating Tax Issues