Salt Lake City Business Litigation AttorneyAs lawyers who fight court battles for our business clients, we’ve come to realize over the years that if the businesses we represent can sign some documents before the fights begin — maybe when the company is first established — then, if contract disputes or other disagreements arrive, we have a better chance at resolving the case without going to trial. Don’t misunderstand us — we love going to court and battling it out in litigation. We enjoy that – it is our job. However, with that same enjoyment in the courtroom, we realize that out clients are better served when they can avoid the courtroom. Trial Lawyers in UtahAs litigation attorneys, one of the skills that we must have is the ability to convey a story to the jury or judge. Judges don’t need a story as much as a jury. Jurors can get bored during a trial. We have polled jurors after verdicts and we find that legal concepts can evade them. When it comes to business trial work, we prefer to have judges rule on every decision possible. A judge who has prior business litigation experience is extremely helpful because that judge will understand the legal concepts and arguments advanced. When a trial is necessary in your business, please call us to discuss our availability to represent your business. We have all types of business litigation from trademark infringement, collection matters, breach of contract, non-compete agreements, and buy-sell agreements to name a few. Business Owners Should Have a Buy-Sell AgreementIf you own a business with someone, you may have heard the term “buy-sell agreement” or a “buyout agreement.” This is a common legal document that serves as a fail-safe for many owners and it may be pertinent for you to have use draft one for you. Understanding buy-sell agreements in more detail may help you decide if creating one it right for you and your business. What is a Buy-Sell Agreement?A buy–sell agreement is a legally binding agreement between co-owners of a business that determines what should be done if a co-owner leaves the business because of death or any other external circumstance. Essentially, it’s like an estate plan for businesses. There are three common types of buy-sell agreements: cross-purchase, redemption, and hybrid. Each form has different functions, and it is important to understand the differences so you know what sort of buy-sell agreement you will need. A cross-purchase agreement is a type of buy-sell agreement where the co-owners agree that in the event of departure of a co-owner, they will buy out that co-owner’s share of the business at a specified price. A redemption agreement is a type of buy-sell agreement where the company buys the departed owner’s share of the business. Typically, the business will have a life insurance policy for each owner and in the event of death, will use the resulting money to purchase the deceased owner’s share. A hybrid agreement is a type of buy-sell agreement which combines the other forms of buy-sell agreements, requiring the remaining owners and business to purchase the interest of the departing owner. If the owners won’t buy the departing owner’s interest, the business is then obligated to do so. However, all buy-sell agreements are unique to each business, so it is important to consult with a lawyer about the right buy-sell agreement for you and your business. Why Should I Get a Buy-Sell Agreement?If you co-own a business, or want to start a co-owned business the long and short of the matter is that you need a buy-sell agreement as soon as possible. These agreements protect your interests and the interests of the business when a co-owner wants to leave or is forced to by extenuating circumstances. Without a buy-sell agreement to protect your interests and the interests of the other owners of your business, you put yourself at significant financial risk. ConclusionIn the absence of a buy-sell agreements, situations like sudden death or mental or physical illness can have a major detrimental effect on your business. If there is no agreement, your co-owners may be unable or unwilling to buy your share of the business, forcing you or people you care about to sell your share to a third party at an amount far less than the actual worth of your share because of the desperate situation. We could tell you horror story after horror story of situations that went wrong. Don’t let that be you. Buy-sell agreements prevent such situations from occurring and ensure that all parties maintain financial security in the business in the event of an unavoidable departure. For more information on buy-sell agreements, a free initial consultation is your next best step. Get the information and legal answers you’re seeking by calling (801) 876-5875 today.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 876-5875
Ascent Law LLC
4.7 stars – based on 45 reviews
Business Law Report by Attorney Michael Anderson in Utah Contract Dispute Attorneys in Utah Mergers and Acquisitions Lawyer in Salt Lake City Utah Business Program by Attorney Michael Anderson in Utah Attorney Michael R. Anderson, Business Litigation via Michael Anderson http://www.ascentlawfirm.com/salt-lake-city-business-litigation-attorney/
0 Comments
Leave a Reply. |
ABOUT USDivorce and Bankruptcy Lawyer in UT. If you need divorce and bankruptcy lawyer, child custody, adoption or family law attorney who does child custody, father’s rights, divorces and bankruptcy – both chapter 7 bankruptcy and chapter 13 bankruptcy law that cares about you, your family, your case, and is aggressive, call 801-676-5506 now for a free consultation. divorce and bankruptcy in Utah can be tough, so you need a smart divorce and bankruptcy lawyer who can help you today. Call 801-676-5506 for the top divorce and bankruptcy attorney in Utah now. Archives
April 2017
Categories |