Frequently Asked Business Law Questions (FAQ)

Frequently Asked Business Law Questions (FAQ)

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Business Law is the part of the law that pertains to the legal needs of businesses. It involves setting up the business, negotiations, and mergers and how a business conducts contracts and other involvements with the community and the government. Here are a few Business Law Frequently Asked Questions (FAQ):

1. I am starting a new business should I start a limited liability corporation or a sole proprietorship?

When you are setting up a business, you need to look at many things. Starting out as the right entity from the beginning can save you time, energy and money later on. An attorney with knowledge in business and tax law can help you decide which entity fits your business situation. It depends on the assets of the business and the liability issues as well as other considerations. It is best to contact a lawyer at Van Bever Law Firm early in the process to determine which entity is best for your situation.

2. We own part of a family owned business. My brother and I no longer agree how to run the business. How do I go about buying my brother out?

This is a good question. Partners and family run businesses often run into these type situations. It is best to seek legal counsel early on and discuss viable options for you and your family. How you dissolve a partnership or family owned business should be done legally to protect your interests.

3. I am considering bankruptcy. Will this stop my vendors from suing me?

There are different types of bankruptcy. Your attorney can help you determine which bankruptcy is right for you. The courts will determine what will happen to you and the status of your liabilities.

4. Will running my business as a corporation protect me from personal liability?

Many people choose to run their business as a corporation to lower their taxes and protect them from personal liability if there are claims against the corporation. Your attorney can discuss the values and disadvantages of becoming a corporation. It is important that you know the rules and laws governing a corporate entity. Failing to follow guidelines could cause a corporate officer to have personal liability.

5. My partner has an agreement with me that limit his ability to purchase goods for our business. He bought thousands of dollars worth of inventory without my knowledge. Am I responsible for his purchases?

In most cases the agreement you have with your partner in private is not common knowledge. Because you have a legal partnership, you may be required to pay for inventory or supplies your partner purchased on behalf of the partnership from an unknowing vendor. It is best to seek legal advice if you need help in determining your rights and liabilities regarding your partnership.

Business law frequently asked questions usually involve how to set up a business and other legal matters the business runs into. If you have a question about Business Law or need to speak with an attorney, call Van Bever Law Firm.

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