BUSINESS SALES / PURCHASES
Whether you are on the buying or selling end, if you are exploring a small business purchase or sale you will want to ensure that you have adequate legal representation. The firm assists individuals and entities in purchasing or selling their business, including preparing Letters of Intent, Purchase Agreements, Negotiating purchase terms and preparing Non-Competition Agreements, other Transfer Paperwork and Attending Settlement.
In many cases, legal services for a business sale or purchase may be handled on a flat fee. Call 410-216-7000 or email biz@elawmd.com
STEPS TO SET UP A NEW BUSINESS:
Arden Law Firm helps clients get a new business up and running. Typical steps in starting a new venture involve the following:
- Craft a business plan
- Determine funding source (savings, friends / family, bank business loans, investors, personal loans)
- Meet w/ Attorney and Accountant; Determine best entity type based on your proposed structure, owners involved and funding
- MD business options include sole proprietorships, partnerships, limited partnerships, corporations (Close Corporations, C Corporations, Subchapter S Corporations, Limited Liability Company or LLC)
- Research industry specific license requirements
- Research / Select Trade name
- Form entity / file articles
- Create governing documents (by-laws, operating agreement)
- Set up tax accounts
- Make appropriate filings / registrations
- Hold organizational meeting(s)
- Create and maintain Corporate / Company Record Book
- Open business bank accounts
- Negotiate Lease (if applicable)
- Prepare Contracts for use in customer relationships (if appropriate)
- Obtain insurance
- Prepare Advertising Material
STEPS TO INCORPORATE / INSULATE AN EXISTING BUSINESS
Existing business owners often realize the benefits of incorporating or forming a LLC after they are established in their line of work. Typical steps to incorporate / form a LLC for an existing business include the following:
- Meet with attorney to determine best entity type (LLC, Corporation, Professional Corporation, etc.)
- Form entity / file articles
- Create governing documents (by-laws, operating agreement)
- Hold organizational meeting(s)
- Obtain new EIN / tax accounts as appropriate
- Create and maintain Corporate / Company Record Book
- Switch existing contracts to entity name
BUSINESS FAQ:
Q: What type of business offers the best liability insulation?
--- A: Limited Liability Companies and Corporations tend to best insulate a business owner from personal liability. Sole Proprietorships and Partnerships may offer no liability protection and may leave the business owner's personal assets open to creditors. Potential clients can email or call to discuss how to best structure their business.
Q: Should I have employees or independent contractors?
--- A: Employees naturally incur employer charges like unemployment, workers compensation, payroll taxes and so forth. Independent contractors pay their own taxes. Unfortunately, you can't simply label individuals you hire to help your business as you chose. The law (and the IRS) look at how your business is set-up and how a job is performed (so if you call someone an independent contractor when they really act like an employee your business could face trouble). This is a very fact-specific question and is based on a number of factors. You may want a qualified opinion or help determining how workers are classified before you hire.
Q: How do I register a new business in Maryland?
--- A: Businesses must register any trade name they operate under with the State Department of Assessments and Taxation. If the business will operate as an entity (a corporation or LLC) that entity must be formed with appropriate Articles filed (either Articles of Organization or Articles of Incorporation). Businesses should also set up tax accounts with both state and federal taxing authorities. Industry specific licensure requirements must be followed (for instance, a barber will need a barber's license, a daycare will need a daycare license and so forth) -- regulated professions must be registered with the appropriate state board for that profession. Depending on the type of business, there may be additional county licensure / registration (for instance, a retailer will need a vendor's license, a home based business may need to register with the county as a home-based business and so forth).
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Small Business
