Complex Business Startups
What Defines a Complex Business Startup?
A business start-up may be considered complex under conditions such as the following:
- When capital is raised from many people
- When some of the capital is invested through loans
- When the terms of the loans, including collateral, are customized
- When there are unusual arrangements for control of an entity
- When voting control of the entity is provided to some, but not all
- When agreements between investors are necessary to restrict who may be owners
- When buy-sell agreements are necessary
- When a combination of ownership units and loans are used to capitalize the company
- Many other special needs
A couple of individuals can form a business entity such as a limited liability company (LLC), a limited partnership or an S corporation with a minimum of work and expense.
But when there are more owners, there may be extensive and various agreements between them, the result of which is the need for counseling, so the necessary terms for the agreements can be complete. There will also be custom, detailed drafting of documents. There will be side effects of the type of documents that are necessary. A good lawyer will anticipate the unintended consequences of various provisions in the documents and advise appropriately.
When it is necessary to offer an opportunity to invest to many people, the federal and state securities laws could cause major damage to the entity and those who have started it, if the company is unsuccessful. It is necessary, in these circumstances, to prepare a private placement memorandum and associated documents.
A Dependable Business Lawyer in Austin
When I serve as counselor in the process of complex business start-ups, I may play a role in bringing all of the players and pieces of the whole together, to where lasting agreements among parties can be made. I advise on and facilitate negotiations and the writing of key documents such as employment contracts, Shareholder agreements, other agreements between owners, loan agreements, securities issues, covenants not to compete and others.
How long the process takes will depend on various factors, including how many people are involved. It will take more time than the formation of a simple LLC or S corporation, but I meet investors’ projected timetables regardless.
An initial consultation regarding a complex business startup will generally last an hour at the law offices of John McDuff, Attorney at Law. Night and weekend appointments are available. Once I am on your team, I can be reached 24/7/365.
Contact John McDuff
Contact me, John McDuff, at 512-457-1177 to discuss your goal to make a set of arrangements with various players, which will each be a part of your start-up.
