Frequently Asked Questions About Business Law

How Do I Structure A Business Succession Plan?

When you pass away or if you decide to step down from your business, business succession can take many forms. Some of the most common succession plans in California involve:

  • Selling your shares to another co-owner
  • Passing your ownership to a beneficiary
  • Selling your ownership to a key employee, outside party or back to the company

What Should I Include In A Business Contract?

A business contract is meant to outline the expectations and protect the interests of the parties involved in an agreement. The most common elements of a business contract include:

  • The identity of the parties: All people or entities legally bound by the terms and conditions of the contract should be defined explicitly.
  • The obligations of each party: Commitments that each party makes should be distinct and included in the agreement.
  • The rights of each party: If a party can't fulfill their obligations, what happens? The actions that each party would take in that case should also be clearly documented.

What Is A Buy-Sell Agreement?

This isn't necessarily about buying or selling the business. Instead, it's a formal agreement that defines how and when owners can sell their interests in the company. It provides a plan for scenarios such as when an owner retires, dies, divorces or goes bankrupt and can also include details about how an outside party may buy in to the business.

How Can I Avoid Liability In My Business?

There are many ways to avoid being liable, but one of the best places to start is by making sure that your business entity is set up correctly by working with a business formation lawyer. You will be less personally liable for the company with an LLC or LLP, but there are still areas where you may be at risk.

We Can Answer Your Questions Today

We will work with you personally to find answers for your business. Give our attorneys a call today in San Diego at 619-822-7566 or message us online to start the conversation.