Chase & Walls PLLCFindLaw IM Template2024-03-28T21:22:40Zhttps://www.chasewallslaw.com/feed/atom/WordPress/wp-content/uploads/sites/1600755/2020/09/cropped-site-icon3-32x32.jpgOn Behalf of Chase & Walls PLLChttps://www.chasewallslaw.com/?p=486342024-03-28T21:22:40Z2024-03-28T21:22:40ZPreparation and valuation
Before listing your business for sale, it is important to thoroughly prepare and understand the value of the business. This involves gathering all necessary financial documents, such as balance sheets, profit and loss statements and tax returns. Valuing the business accurately ensures both parties have realistic expectations and can negotiate from a position of knowledge.
Finding the right buyer
Finding the right buyer can make or break the deal. Sellers should seek buyers who are financially capable and have a genuine interest in the business. Networking, industry connections and business brokers can help facilitate this process.
Negotiation and due diligence
Negotiation plays a large role in determining the terms of the sale or purchase. Both parties must agree on price, payment structure, assets included and any contingencies. During this phase, thorough due diligence is necessary. Furthermore, sellers should be transparent and provide all necessary information.
Drafting the agreement
Once the parties involved agree upon the terms, it is time to draft a comprehensive agreement outlining the terms and conditions of the sale. This includes the purchase price, payment schedule, transition plan, non-compete clauses and any warranties or representations. The agreement should be clear, precise and legally binding to protect both parties' interests.
Closing the deal
Closing the deal involves finalizing all paperwork, transferring ownership and completing any remaining tasks outlined in the agreement. This may include transferring licenses, leases, permits and notifying employees, customers and suppliers of the change in ownership. Clear communication and coordination are helpful in ensuring a seamless transition.
When sellers understand the process, they can confidently navigate the sale of a business effectively, maximizing their chances of a successful transaction and achieving their desired objectives.]]>On Behalf of Chase & Walls PLLChttps://www.chasewallslaw.com/?p=486332023-12-27T20:06:09Z2023-12-27T20:06:09ZClear communication
Establishing effective communication from the outset is important. Clearly define roles, responsibilities and expectations. Regularly check in with your partners to ensure everyone is on the same page. A lack of communication can lead to misunderstandings and hinder the growth of your partnership.
Shared values and goals
Aligning values and goals is fundamental to a successful business partnership. Partnerships thrive when all parties share a common vision. Take the time to discuss and identify overarching objectives, ensuring that everyone commits to the same mission.
Mutual respect and trust
Trust is the foundation of any healthy partnership. Foster an environment where mutual respect is upheld. Trust builds over time through consistent actions, transparency and reliability. A trusting relationship forms a solid base for collaboration and problem-solving.
Flexibility and adaptability
In the ever-changing landscape of business, flexibility is a valuable trait. Be open to adapting strategies and approaches when necessary. Flexibility allows partners to navigate challenges together and find innovative solutions to problems that may arise.
Accountability
Accountability is not just about owning up to mistakes; it is also about celebrating successes. Acknowledge achievements and learn from setbacks collectively. When partners take responsibility for both triumphs and failures, it fosters a sense of unity and commitment to shared success.
Regular evaluation
While you do not need to be like the average executive and spend 23 hours a week in meetings, regularly evaluating the progress of your partnership is necessary. Schedule periodic check-ins to discuss what is working well and where to make improvements. Constructive feedback is a necessary tool for growth, allowing partners to make informed decisions and refine their strategies.
Taking a collaborative approach ensures every partner feels valued and contributes to the overall success of your venture.]]>On Behalf of Chase & Walls PLLChttps://www.chasewallslaw.com/?p=486282023-09-27T16:57:48Z2023-09-27T16:57:48ZLimited liability
One of the primary reasons entrepreneurs choose to form an LLC is the liability protection it offers. As a business owner, you generally have protection for your personal assets from business debts and lawsuits if you have an LLC.
Flexibility
LLCs provide flexibility in management and operations. You can choose to manage the LLC yourself, elect a manager or even have members participate in decision-making. This adaptability allows you to structure your business to fit your specific needs.
Taxation options
By default, an LLC is a pass-through entity, meaning that business profits and losses pass through to the individual members' tax returns. However, you can also elect for taxation as a corporation if that better suits your financial goals.
Fewer formalities
While an LLC provides many of the benefits of a corporation, they have fewer formal requirements. You will need to file articles of organization with your state and pay the necessary fees. However, you do not need a board of directors, annual meetings or complex record-keeping. This simplicity can save you time and reduce administrative burdens.
Credibility
An LLC can enhance your business's credibility, as it often signals professionalism and a commitment to long-term success. This can be particularly advantageous when seeking financing or attracting customers and partners.
Forming an LLC can be an excellent choice for many businesses, but you should carefully consider your business's unique needs and goals before making a decision.]]>On Behalf of Chase & Walls PLLChttps://www.chasewallslaw.com/?p=486272023-06-27T00:52:38Z2023-06-27T00:52:38ZChoose a business structure
The first step in forming a company in Texas is to determine the most suitable business structure for your enterprise. Common options include a sole proprietorship, partnership limited liability company (LLC), or corporation. Each structure has its own advantages and considerations in terms of liability, taxation, and management. Research and consider consulting with a professional to help you make an informed decision based on your specific needs and goals.
Register your business name
Once you have chosen a business structure, the next step is to select and register your business name. Ensure that your chosen name complies with the naming rules set by the Texas Secretary of State. Conduct a search to check if the desired name is available and not already in use by another entity. You can reserve a name for up to 120 days by filing a Name Reservation Application with the Secretary of State's office.
File formation documents
To legally establish your company, you need to file formation documents with the Texas Secretary of State. The specific documents required depend on the business structure you have chosen. For example, if you are forming an LLC, you will need to file a Certificate of Formation, while a corporation requires filing Articles of Incorporation. These documents typically include information about the company's name, registered agent, management structure and other relevant details.
Obtain federal and state tax IDs
Most businesses in Texas must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). The EIN serves as a unique identifier for tax purposes. You can apply for an EIN online through the IRS website. Additionally, depending on the nature of your business, you may need to register for state-specific tax IDs, such as the Texas Sales and Use Tax Permit.
Starting a company in Texas can be an exciting journey, and with proper planning and execution, you can set yourself up for success in the Lone Star State.]]>On Behalf of Chase & Walls PLLChttps://www.chasewallslaw.com/?p=486262023-06-09T05:31:40Z2023-04-26T01:20:08ZBlind spot #1: A lack of research
Contract writers must come from a place of knowledge. Failure to address essential issues is more likely when one lacks a thorough understanding of the relevant industry. Bulletproof agreements begin with deep investigative dives.
Blind spot #2: A lack of clarity
Any ambiguity has the potential to turn into an unpleasant conflict. Thus, the rights and responsibilities of all parties must allow zero room for misinterpretation. Using boilerplate documents from the internet remains unwise for many reasons. For example, the language may not reflect current law. The savvier choice is starting from scratch. This makes it more likely that the wording within fits the specific situation.
Blind spot #3: A lack of addressing conflicts
Even if a contract is easy to understand, one player might willingly violate its terms. Another scenario is that an honest disagreement develops over time. Helpful clauses state that independent dispute resolution will be the way forward. That way, thorny clashes can end with minimal fuss. The alternative is litigation, an emotional and financial drain.
Proper contracts protect businesses from a myriad of threats. Businesspersons need to make sure their legal agreements cover every critical matter.]]>On Behalf of Chase & Walls PLLChttps://www.chasewallslaw.com/?p=485842023-06-09T05:31:47Z2022-12-21T18:57:01Zlist of negotiation failures, it still affects your bottom line. Among the many nuances involved in the art of negotiation, the three tips below may help ensure success.
1. Break it down
Instead of focusing on the whole picture at once, you should break it into sections. By doing so, you can direct focus on the different aspects and avoid the other party from feeling like they have no options. As you settle on each part, it creates the feeling of making progress toward the final goal.
2. Solidify priorities
Your priorities should serve as a guide during the negotiations. While revenue and risks often top that list, maintain focus on the ones that matter most. Discussing them first makes your intentions clear from the start. When it comes to compromising, you will already have communicated the areas in which you have less room for changes.
2. Use a professional
Negotiating requires an array of tools. As a business professional, you have keen insight into the business but might not have the other skills needed to get the contract signed. Using the services of a lawyer eases the process, from drafting the contract to negotiating it and finalizing it, freeing you up to focus on the needs of your business.
No matter how big or small the contract, the negotiation process requires patience and open communication.]]>On Behalf of Chase & Walls PLLChttps://www.chasewallslaw.com/?p=485822023-06-09T05:31:51Z2022-09-23T21:42:24ZInsufficient corporation documents
Many online incorporation services attempt to offer a one-size-fits-all solution to a business owner's legal needs. However, your business is unique and likely requires more specific documentation for a variety of purposes. For example, you might find that you lack the proper corporation documents when applying for a business bank account or requesting a loan.
Difficulty navigating contracts
Having a legal professional in your corner means that your business is less likely to suffer from a contract-related oversight. Taking a do-it-yourself approach can lead to faulty contract negotiations, or you might even sign a heavily unfavorable contract.
Making costly mistakes
You might expect an online incorporation service to do all the work for you, but there are some forms that you must complete yourself. If you make any mistakes during this process, it could result in inaccurate tax reports or other errors that may cost your business hundreds or thousands of dollars.
Entrepreneurs require a wide range of skills to find success in the business world, but one person cannot master every aspect of maintaining a corporation. For establishing the legal structure of your enterprise, it is often better to consult with experienced individuals rather than attempting to do it yourself.]]>On Behalf of Chase & Walls PLLChttps://www.chasewallslaw.com/?p=485812023-06-09T05:31:56Z2022-06-17T19:28:24ZWhat is a valid contract?
A valid contract has specific terms about the parties involved and the payment terms. There must also be a termination clause. If your contract has these elements, it may be binding, but you may have an out if you can prove fraud.
How can you prove there was fraudulent behavior?
To prove fraudulent behavior, you will need to prove that one of these things happened:
Someone forged your signature.
The other party misled you into signing the contract.
Someone used deceptive means to steal from you.
Theft by deception is a criminal offense in Texas. People are indicted for entering into an agreement on misleading terms. If you feel the other party behaved fraudulently, you can get out of the contract, but you may have to file a lawsuit. Plus, you will have to ask the court to declare the contract void. If you lost money, you may have to file an additional suit asking for damages.
Most contracts are binding. Still, you can get out of an unfair contract if you can prove the other party used deception to take advantage of you.]]>On Behalf of Chase & Walls PLLChttps://www.chasewallslaw.com/?p=485782023-06-09T05:32:00Z2022-03-26T19:05:29Z1. The value of the entity
Knowing the true worth of an operation is vital. Otherwise, it becomes impossible to measure the adequacy of an offer. Business valuations are very complex; an appraiser can help determine the true value of your enterprise.
2. The transparency factor
For a smooth sale, sellers need to be honest. Every piece of relevant documentation should be available for scrutiny. Transparency reduces the odds of a legal conflict interrupting a deal.
3. The bidding process
The most money gets made when many offers are on the table. Business owners should plan on informing potential buyers at the same time. With enough luck, a bidding war erupts and lends itself to heftier profits.
4. The right person
Entrepreneurs typically feel a personal attachment to their capitalistic creations. They want the business to thrive, even after they no longer play a role in the operation. Sellers should check the track records of buyers before making a decision.
There are many factors to keep in mind when selling a commercial entity. Putting a company up for sale requires forethought and a prudent approach. Owners must do their due diligence ahead of striking an agreement.]]>On Behalf of Chase & Walls PLLChttps://www.chasewallslaw.com/?p=485542023-06-09T05:32:04Z2022-01-04T10:09:50Zcommon contract breach types to help identify misgivings in the future.
Minor breach
Delivery delays may occur, which may set the intended receiver back somehow. This minor breach of contract may not cause significant harm, but if it results in the receiver losing money, the delinquent party may need to pay it back. Minor contract breaks may resolve between a separate agreement of the parties rather than through court.
Anticipated breach
An anticipated breach of contract occurs when an event makes it unlikely one party will meet a specified deadline. This usually results in the breaching party informing the other that they cannot fulfill their end of the agreement either in whole or part. The innocent party may take steps to either modify the contract or bring legal action against the anticipated breach.
Material breach
Sometimes the performance indicated in the contract falls short of expectations. A material breach may cause the innocent party actual harm short and long term. Either the breach needs rectifying and the shortfall fixed, or the innocent party may get an award of damages through court proceedings.
When one contract party does not do the right thing, the consequences may prove dire for the other. However, a properly negotiated contract may allow the victimized party to take action and recoup financial damages suffered in a breach.]]>