A Business Lawyer Abingdon VA Trusts Explains Business Partnerships
There are a number of reasons people who are in business together may decide to dissolve their partnership. The decision to part ways may be on friendly terms such as the wish to pursue other opportunities or one person wants to retire. However, if you are in a partnership with someone, you may choose to dissolve it for less than amicable reasons. As a result, a highly contentious situation may begin to unfold. Depending on the situation, you could find yourself in need of an Abingdon VA business lawyer.
Ending a partnership can be an uncomfortable situation, especially if the partnership you were in did not end on good terms. The situation may become even more complicated if you and your partner are unable to reach an agreement over who should assume sole ownership of the business.
Reasons to Go Into Business with Someone
There are a number of reasons for two people to go into business together. In most situations, people enter business agreements or partnerships under the best of terms. In theory, going into business with a friend or relative can be exciting, especially if you have established clear boundaries with one another. Unfortunately, in some situations, people are not able to work together anymore. The following are common reasons people partner in business ventures:
- Sometimes a partnership is more doable financially when starting a business. It can feel like less of a financial burden to share the start-up costs associated with getting your business up and running.
- Some people may not have the skills required to manage the day-to-day aspect of running a business.
- You and your business partner have a great idea that you would like to pursue together.
- It can be fun to work with another person and can be beneficial when taking risks or fostering different ideas and creativity.
By making sure that you and your business partner put in the proper time and planning prior to entering a partnership, you both have the opportunity to benefit greatly. However, achieving this goal should be done with the assistance of an Abingdon VA business lawyer. You will be able to draw up clear agreements in terms of your roles and responsibilities as partners.
Ending a Partnership
Dissolving a partnership can be a complicated process, especially if you and your partner do not agree with how things need to end. There are a number of reasons for people to take this next step. Unfortunately, if the situation is not handled well, it could have a tremendous impact on the business you worked so hard to build.
In some partnerships, one person may choose to leave, allowing the other person to purchase their share of the business. This is a process that will benefit with the assistance of a business lawyer. The business can take a big hit if two people wish to retain control of the business but no longer want to own it together. Regardless of the situation, it may be helpful to take the following measures when looking to dissolve a business partnership.
- It may be a good place to start by reviewing the partnership agreement that you and your partner have been operating from. Hopefully, this will offer guidance in terms of how you should move forward.
- Communicate with anyone who may have a stake in the business. If there are other partners involved, you will surely need to work with them regarding their input.
- Depending on where you live, it may make sense to file dissolution papers with the state formally ending the partnership.
- You may want to speak with your tax accountant and attorney regarding any other formal steps you should take to ensure that you have officially dissolved the business partnership.
- Pay off all debts and close any accounts that were held during the partnership.
Although there are a number of reasons for people to enter into a business partnership, there are also a number of risks. Unfortunately, business partnerships have a greater risk of notwithstanding the test of time. It is important to establish clear roles and agreements prior to entering into a business partnership. A business lawyer Abingdon VA clients recommend will be vital in ensuring that you both have clear agreements regarding your business and what should happen in the event that you choose to dissolve the partnership. Having a clear plan in place from the get-go, can make it much easier should you hit any bumps down the road.
Five Reasons Why You Need a Business Plan for Your Small Business
Business plans have been used for a long time, though certain entrepreneurs find them more useful than others, as a business lawyer Abingdon VA offers might attest. Some business owners think business plans are outdated documents with the sole purpose of swaying bank managers for better financing. A business plan is more than that, though. It is a tool that can help you run your enterprise more efficiently.
Managing a small business doesn’t have a “one size fits all” solution, but a solid business plan can act as a blueprint. A business lawyer in Abingdon VA, such as Mark T. Hurt, may help you create a plan for your company.
If you’re still on the fence, here are five strong reasons why creating a business plan can be a smart investment of your time and energy:
- Establish a Game Plan
A standard formula may not exist for running a company, but every startup needs a working model. The first thing you want to define is what your business is trying to achieve. What problems do you intend to solve among consumers? How will you brand and market your products? What about the price? Lack of a business model is one of the top reasons Forbes credits to the failure of 80% of startups.
- Understand the Marketplace
It’s a recipe for failure when someone is running a startup without knowing who their competition is and how the industry operates. To acquire a portion of the market, your products must offer the consumer something that the competition doesn’t. What are your rivals doing poorly? Why do consumers favor some brands over others? A business plan should help you learn these answers.
- Plan Your Financing
Even if you are not going to ask for a bank loan to fund your startup, it’s essential to have information about how much your venture will cost. A business plan estimates different expenses, such as renting or buying commercial space, hiring staff, and acquiring assets like equipment and inventory. If your company needs investors, then a business plan is a must-have. Interested parties will want to see what they are investing in. Whether you are approaching private investors or a bank, you’ll want to have a concrete business plan.
- Avoid Mistakes
Mistakes in business are common, but some of them are preventable when you have a blueprint to stick to. A business plan allows you to anticipate potential problems that your company may face. Legal issues are some of the most common problems. By hiring a business lawyer Abingdon VA can provide before problems arise, you can ensure that your company adheres to all necessary regulations, compliance, and certification requirements. The typical Abington business lawyer handles a host of other business needs ranging from employee contracts to business partnerships.
- Create a Plan For Growth
When writing up a business plan, an entrepreneur must establish benchmarks. Most companies usually set three- to five-year goals. By reviewing the performance of the enterprise after the required period, you can tell if the strategy is working. Based on the progress of the existing business plan you can decide if your company needs to pivot to a new approach. Note that business objectives evolve with time and therefore your plan will need adjusting after a while. An experienced business lawyer Abingdon VA has to offer may help you create a strong business plan that can be modified easily over time.
Protecting Assets When You Are A Business Owner
One of the drawbacks about having money is that it can make you vulnerable to judgments and lawsuits. All of that equity you have built up in the family home, all of those hit and miss investments you have made, and other financial successes you have had can become victim to business or other type of creditor liability.
It is not uncommon for people who are successful in business to be targets of lawsuits, both legitimate and frivolous. A successful business owner may find him or herself being sued by a disgruntled employee, competitor, or other party. Given the ups and downs that go along with owning a business, there is also the risk of issues with business loans or lines of credits that could target the assets of the business. Whatever the source of threat, protecting one’s assets before these threats present themselves is critical. So how does one protect business assets from liability?
Assets of a business that may need to be protected include accounts receivables, intellectual property, and any surplus cash the business may have. The first step an asset protection attorney will take is to recommend a business structure that will minimize liability, as well as determine how the business should be structured. Factors used to make these determinations include what the sources of potential risks could be and the extent of the risk these sources pose. A business lawyer in Abingdon, VA can explore the specific risks that affect your assets and devise a plan to protect them.
Business owners must also make arrangements to protect personal assets, as well. The type of business entity that is chosen does not always accomplish this. For example, professionals like architects, attorneys, doctors, and anyone else with a professional practice will often be held personally liable for malpractice no matter their business structure. There is no guarantee that the court overseeing a lawsuit will agree that the business structure protects the individual against liability, even if the entity is a Limited Liability Company (LLC) or corporation.
Mark T. Hurt: A Business Lawyer Abingdon VA Companies Depend On
It is these risks and uncertainties that make it imperative for business owners to consult with an a business lawyer in Abingdon, VA to make legal arrangements to protect both personal and business assets from any outside threats of lawsuits or creditors. The legal team at the Law Offices of Mark T. Hurt will not only evaluate your business to ensure you are in the best possible business structure for your situation, but also make sure your assets are well protected from any of those outside threats.
With more than 25 years of experience, the Law Offices of Mark T. Hurt have been helping clients devise business plans and protect assets and property, and we will work with you to ensure a safe future for you, your family and your business.
For more information about creating a business plan, please contact The Law Offices of Mark T. Hurt to schedule a consultation with a business lawyer Abingdon VA trusts.