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FAQ's

Why do I need a business lawyer?

You need a business lawyer to properly document the terms of your deal. We liken a good business lawyer to a primary care physician who prevents problems while a litigator is like a surgeon who fixes problems at a high cost financially and emotionally. A business lawyer foresees open issues, reduces risks, maximizes benefits, closes loopholes and negotiates the best deal for clients.

 

Why can't I use LegalZoom or Rocket Lawyer and do it myself?

In short, because these are forms that are not tailored to your deal and leave you vulnerable to multiple risks. A good corporate lawyer spent 4 years in college plus 3 years in law school followed by years of experience negotiating deals from the buyer and seller side and has the ability to analyze risks, explain risks and benefits, pinpoint major issues and resolve them in your favor.

 

Why are lawyers so expensive?

Again, lawyers spent 7 years of post-secondary education as well as many years of work experience in order to perform work in 1 hour that would take a junior attorney 4 or 5 hours. At Vu Law, we charge less than the big full service firms so that you get the expertise of a $1,000 hour partner at a fraction of the cost.

 

How are you able to charge less?

Big full service law firms have a lot of overhead, including premier office space, administrative assistants, receptionists, expensive artwork and teams of junior associates. We cater to small and medium businesses, so we do not need the overhead used by those firms.

 

How soon will I receive drafts of my agreements?

If you are responsive to our questions regarding business terms, we endeavor to provide drafts within a week for most agreements. Of course, this depends on the type of agreement and the complexity of the deal.

 

Should I consult with a corporate lawyer before starting a new business?

Yes. Your attorney can advise you on what type of entity to form (corporation, partnership, LLC, sole proprietorship) and under which jurisdiction (your home state or principal place of business or Delaware) to ensure you and your business are protected in the most advantageous way. Each structure has requirements for maintaining status with varying levels of protections for the owner.

 

What is a corporation?

A corporation is a legal entity separate from its owner(s) and protects the owner(s) against personality liability (with limited exceptions). However, corporations are subject to double taxation because profits are taxed at the corporate level and upon distribution to shareholders. Corporations must observe formalities, including conducting annual meetings, recording meeting minutes and electing officers and directors. In addition, public corporations must comply with SEC rules and regs.

 

What is a partnership?

A partnership is an association of 2 or more persons acting as co-owners. Profits, losses and control are proportionately divided among the partners. The partnership is not taxed as a separate entity. It is a pass-through entity to each of the partners. Each general partner is personally liable for all acts and obligations of the partnership.

 

What is a limited liability company?

A limited liability company is an unincorporated business organization with at least one member. LLC's are not taxed as a separate entity, but as a pass-through entity to each member. However, members are not personally liable for acts and obligations of the LLC. An LLC combines the best aspects of a sole proprietorship and a corporation.

 

What is a sole proprietorship?

A sole proprietorship is a business that legally has no separate existence from its owner. Income and losses are taxed on the individual's personal income tax return. The individual is personally liable for acts and obligations of the business.

 

What is a fictitious business name or d/b/a?

A fictitious business name is a name that is different than the legal business name on file with the state. Generally, fictitious business names must be registered with the state.

 

 

Is it important to use the same business lawyer for all of your transactions?

Yes. Using the same business lawyer is beneficial because she knows your company, your team and your goals. The more knowledgeable she is about your company, the better she is to negotiate on your behalf without needing as much input from you. So, this decreases ramping up, consultations with the company and costs for you!

 

What is mergers and acquisitions?

Mergers and acquisitions, or M&A for short, involves the process of combining 2 businesses into 1. The goal of combining 2 or more businesses is to try to achieve synergies, economies of scale, reduce labor costs and increase market share.

Mergers occur when companies join forces. Such transactions typically occur when 2 businesses recognize advantages the other offers in terms of increasing sales, efficiencies and capabilities. The companies become equal partners in the new venture.

 

Acquisitions occur when 1 company buys another company and folds it into its operations. Sometimes the purchase is friendly and sometimes it is hostile, depending on whether the company being acquired believes it is better off as an operating unit of a larger venture.

 

The end result of both processes is the same, but the relationship between the 2 companies differs based on whether a merger or acquisition occurred.

 

What is a joint venture?

A joint venture is when 2 or more individuals or businesses agree to pool resources to achieve a specific target. A joint venture may be investing in a new business operation or it may involve sharing certain assets for the combined benefit of both parties.

 

By combining skills and assets, 2 businesses involved in a joint venture may experience growth that’s not possible when operating as separate entities. Negotiations of joint ventures include profit sharing, boundaries between parties involved and a fair share in profits.

 

This is non all-inclusive, but meant to answer questions you might have. We hope that you found this helpful. Please reach out for a free consultation if we can answer ANY questions you have.  

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