Complex Business Startup
A business start-up may be considered “complex” under conditions such as the following:
- When capital for the business 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.
How Does a Business Lawyer Aid a Complex Business Start-up?
A few individuals can form a business entity such as a limited liability company, limited partnership, or an S corporation with a minimum amount of work or expense. However, when there are more owners, there may be extensive and various agreements between them. These agreements require experienced legal counseling so the necessary terms for the agreements can be complete. In addition, a skilled business lawyer can anticipate the unintended consequences of various provisions in the documents and advise appropriately.
Furthermore, when multiple investors are necessary to begin a business, the federal and state securities laws could cause major damage to the entity (and those who have started it) if the business is unsuccessful. It is crucial, in these circumstances, to have an experienced business lawyer prepare a private placement memorandum and associated documents.
Contact John McDuff to Discuss Your Startup
When serving as a counselor in the process of complex business start-ups, John McDuff plays a key role in bringing all the pieces together, making lasting agreements among parties. The Law Office of John McDuff, P.C. advises on and facilitates negotiations. We also draft key documents such as employment contracts, shareholder agreements, agreements between owners, loan agreements, securities issues, covenants not to compete and more.
Contact John McDuff at 512-457-1177 to discuss your goals, make arrangements, and begin building your start-up. Our law firm serves clients primarily in Austin and throughout Central Texas.