Boston Avenue Law can help you choose the right type of business entity, such as a Corporation or a Limited Liability Company (LLC), and then help you create it. Even though you can “create” a business entity by simply filing some documents with the Secretary of State, there are other documents you need to have in place for legal and/or tax reasons.
Although downloadable or pre-printed forms for important documents like the bylaws of your corporation or the operating agreement of your LLC are typically legal, they rarely reflect what the founding investors actually envision for their business. By planning ahead with our Firm, you can adjust the governance of your organization to the needs of your stakeholders. Another concern is that canned documents may not take advantage of benefits available under Oklahoma law or, worse, they may be more strict or in violation of Oklahoma law.
There are several other details involved in the creation of a business entity. For example, particularly with Corporations, you must take adequate precautions to ensure the founding individuals are not stuck with debt or other liability intended for the business entity. Also, both corporations and LLCs can be treated differently by the Internal Revenue Service, depending on tax elections you make. Boston Avenue Law, in conjunction with your CPA, can help you make the best choice for your business and its stakeholders.
What We Do – Working Smart Inside a Business Entity
Business entities like corporations and LLCs provide great protection for their owners. However, with that protection, comes the burden of legal formalities. Corporations are typically much more formal than LLCs, and with that formality comes more meetings, more paperwork, and more rules. Sometimes, owners operate their business outside the bounds of the formal requirements placed by statute or by their own documents, such as the bylaws or the operating agreement. Other times, stakeholders are operating properly, but the situation has become too complex to fully grasp rights and responsibilities. These issues become very important when there is more than one owner and the group cannot agree on an important decision, or worse, owners become openly hostile to each other. Boston Avenue Law can help you navigate such rocky terrain.
What We Do – Selling Business Entities and Individual Interests
There is no “typical” process for selling a business or “standard” formula for determining the sale value of a business. Ultimately, a business is “worth” what a buyer is willing to pay, and the process that will be used is determined by the needs of the parties and the requirements of the law. There can be a constant stream of negotiated details right up to the signing of documents and exchange of funds. Certainly, a Boston Avenue Law attorney can help you or represent you every step of the way.
However, there are other concerns you should have before entering into sale negotiations. For instance, if you are selling real estate with the business, there are numerous steps you should take so you will be prepared for buyer inquiries. Additionally, Some businesses are regulated and must inform or involve government agencies whenever a substantial interest like realty is sold.
Additionally, you should have an attorney review your bylaws or operating agreement in addition to your organizational structure and outstanding obligations. If, for example, your business entity is not governed in accordance with its rules, debts or other obligations currently undertaken by the business could end up being the liability of an individual director or officer after the sale. Preparing for the sale can be a more intense and rigorous process than the sale, itself.
What We Do – Dissolving Businesses
Businesses dissolve for a variety of reasons and those reasons can be intertwined with how the business winds up its operations. There are a variety of factors to consider, including your bylaws or operating agreement, your assets and liabilities, tax consideration, and the interests of your stakeholders. As with the creation and sale of a business entity, there can be substantial negotiation at all phases and, as terms of the dissolution change, compliance, tax liability, criminal liability, and civil liability must be considered. Boston Avenue Law works with you and your CPA to minimize your risks.