Do I Need A Lawyer to Break up My Business?
Breaking up any type of business can be painful. When you put your heart and soul into a business endeavor and it comes to an end (for one reason or another), it can be a tough pill to swallow for even the most battle-tested business owner. When the decision has been reached, the actual process of breaking up a business can be somewhat confusing. Many owners are not sure if they need a lawyer to ethically break their business up or not. The answer to this question will depend on a number of factors such as how many people have an ownership stake, how complex the business’s finances were, as well as other vested business interests connected to your company. One thing is for sure, hiring a business attorney is in your best interest. There are very few instances where the advice of an experienced lawyer will not prove to be an asset. Choosing to break up your business without the help of an attorney can leave you as well as your partners (if applicable) vulnerable to a variety of potential dangers. Visit our website to learn more about the benefits of consulting with a business lawyer before you break up your business.
When You Need a Lawyer
While a business attorney can be an asset in just about any case involving the dissolution of a company, there are certain circumstances that it is especially recommended that you work with an attorney. Not doing so could prove to be detrimental by exposing you to unnecessary liabilities, putting your finances at risk, as well as leaving you open for potential lawsuits. Listed below are the most common reasons that a business owner chooses to hire a business attorney.
- Partnerships: Business partnerships are not always easy. In many cases, they end by one or all partners walking away. A business attorney can help you identify divisions of profits and losses and hep to enforce buy-out provisions.
- Complex Business Structure: If the structure of your business is complex, working with a business attorney can help to ensure that your company is dissolved in a fashion that will absolve you of further responsibility and insulate you (as well as your estate) from future liabilities.
- Stakeholders: When you decide to walk away from a business that has investors, it’s not as easy as it would be if you were a one-person show. An investor will likely demand their fair share. Deciding on what that is can be difficult without a business lawyer.
When You Don’t Need a Lawyer
If your business is profitable, holds a considerable amount of debt, has many employees and/or investors, etc. then it is in your best interest to at least consult with a business attorney before you break up your company. However, if you own a relatively small business with a low number of employees (if any), no investors, and your business does not have any debts, then it may be feasible to break up your business without the help of an attorney. In most cases though, it is best to check with an attorney before doing so. Most will offer you a free consultation before you have to pay for anything. When dissolving a business, it is best to take every precaution available to ensure that negative consequences do not arise as a result of a hastily executed business breakup.