The following is a discussion of why entrepreneurs should consider meeting with a lawyer to discuss business transactions as they develop in order to help protect against unforeseen tax consequences and unexpected legal issues.
For many entrepreneurs, the process of involving a lawyer in the management of their legal affairs or in helping them handle their deal-making can be a frustrating process for both parties. Entrepreneurs will often seek the help of a lawyer to put the finishing touches on a deal that is already in place or to simply “write-up” an agreement that has already been reached by reducing it to a writing. The problem with this approach is that there may be additional considerations not included in the proposed deal or, even worse, there may not actually be a firm agreement in place at all.
Moreover, certain deal points may have tax or legal implications that extend beyond the business considerations contemplated in formulating the agreement. For example, in some circumstances, there may be rights granted to a shareholder by a statute that will be enforceable if it is not addressed in the contract itself. This kind of situation could have significant consequences where the rights granted implicate tax treatments or legal prohibitions on certain kinds of asset transfers, especially where third-party investors are involved.
As a solution to this, it can be beneficial for an entrepreneur to seek the counsel of a lawyer sooner rather than later. The entrepreneur can share the general ideas surrounding a proposed deal with a lawyer early in the process so that the lawyer is not only helping to finalize the deal, but is actually helping to develop and structure the deal as it comes to fruition. A lawyer can be exceedingly helpful in vetting out potential ideas or pointing out realistic pitfalls as the entrepreneur works towards an agreement with another party, be it a strategic alliance, a licensing agreement, or a situation where the entrepreneur is seeking to buy or sell another business or a set of assets belonging to another business.
In conclusion, it is advisable to sit down with a Business Law attorney who can take your proposed ideas into consideration when helping you build a deal that is both concrete and advantageous to you, including the appropriate legal protections to maximize the growth of your business venture.
ODGERS LAW GROUP specializes in the development and negotiation of business deals and can help you create the agreement that is best for you while ensuring your personal assets remain protected. To learn more about business law or to schedule your free consultation with Mr. Odgers, contact us by e-mail, call us at (858) 869-1114, or schedule your appointment online here.