Business Formation Made Easier by Nonaj Law Firm
Business formation is not an easy task. It involves a lot of legal work and paperwork. The first thing that you must do is decide on the type of business entity you want to start. There are different types of business entities including sole proprietorship, partnership, corporation and limited liability company (LLC).
The benefits of each type of entity vary depending on your specific needs and circumstances. In general, it’s best to choose the form that best matches your business goals. For example, if you’re just starting out, you may want to consider forming a partnership or sole proprietorship because they are less costly and simpler than creating a corporation. However, if you plan on growing your business substantially down the road or want to protect yourself from personal liability, forming as an LLC may be better for you.
Here are some of the types of ways a business can be created.
Corporate Entity Creation
A corporation is a business that is separate from its owners. It has its own legal existence, with limited liability for the shareholders. Corporations can be privately held or publicly traded on the stock market.
The benefits of forming a corporation include:
Limited liability for the shareholders
This means that if you are sued, the corporation (and not you personally) will be responsible for paying any judgments against your business. If your assets are worth less than the amount owed to creditors, then their claims will be satisfied by taking your personal assets first.
Some corporations are taxed at lower rates than other businesses, and some may even qualify as corporations, which pay no income tax at all. In addition, many types of investors prefer investing in corporations rather than partnerships or sole proprietorships because they offer more security and stability. The downside to forming a corporation is that they tend to involve more paperwork and cost more money than other forms of business entities (for example, by requiring an annual report).
If your business needs more capital or wants to expand operations, it might be time to consider changing corporate structure. You could merge with another company, acquire assets from another company or even sell off parts of your company in exchange for stock in another company. This can be in the form of a partnership
A partnership is a group of people who agree to share profits and losses on an equal basis. Partnerships have unlimited liability for debts incurred by partners — this means that if one partner fails to pay his or
Business Sales, Mergers and Acquisitions
These are very common in the modern business world. But how do you go about them? What are the legal aspects involved? This article will help you understand more about these processes.
In a merger or acquisition, one company buys another company. This is because they want to expand their business, or because they want a different product line. They may also want to take over a competitor’s market share.
There are many different types of mergers and acquisitions which include:
In this type of merger, one company buys only certain assets of another company. For example, if Company A wants to buy Company B’s cash flow generation capacity without buying the entire company, it would purchase just those assets related to generating cash flow such as an office building or factory equipment.
In this type of merger, one company buys another company by purchasing its stock from its shareholders. The shareholders receive cash for their shares in addition to whatever premium they paid for them in the first place when they bought them from the issuing corporation (or even from other shareholders). This can be either cash or other securities (such as bonds), depending on how much
In creation, the business is created by making a contract with the government or another entity. The contract specifies what rights and obligations the business has. This is typically done through incorporation, but it can also be done by other methods such as setting up a limited liability company (LLC) in some states.
In enforcement, a business is formed when someone starts doing business under a name that’s already been registered as a trademark or service mark. For example, if you start selling products under the name “Apple” because you think that name refers to your products, then you’re infringing on Apple’s trademark rights because you’re using their name without permission. The government doesn’t need to know about it for this form of enforcement; instead, Apple could sue you for trademark infringement in federal court (assuming they discover your use of their mark).
A noncompete agreement is a contract by which an employee agrees not to compete with his or her employer after the employment relationship ends. Noncompete agreements are designed to protect a company’s business interests, but they can also have negative consequences for employees and consumers.
In some cases, non-compete agreements can be enforceable in court. State laws vary regarding what types of agreements are enforceable, but most states limit non-compete to certain professions and industries.
There are various ways that noncompete agreements can come about:
When one company acquires another, it may require the new owner not to compete against it — either within a certain geographical area or for a specified period of time. This type of agreement is common when an acquisition occurs between two competitors or when an established company buys out its competitor that has been operating under the same name and logo. The same applies when one company buys another’s assets through bankruptcy proceedings.
When two companies merge or acquire each other, they often include clauses in their merger agreement prohibiting one party from competing against the other for a certain amount of time or within certain geographical areas after the merger closes on paper
It is a good idea to have a lawyer review the non-compete agreement before you sign it. The lawyer can help you understand your rights and responsibilities under the agreement and can advise you about whether or not it is fair.
The Nonaj Law Firm is a boutique law firm dedicated to helping our clients in all types of business-related issues. We handle all types of legal work business related. We have an extensive knowledge of the law and can provide effective representation in any type of business dispute.
Our attorneys will work with you and help you in every legal work for your business. We will use our experience and legal expertise to help you achieve your goals when setting up your business.
Contact us today on 917-423-7259 to schedule a free consultation with one of our experienced attorneys