If you are considering establishing your business as a limited liability corporation (LLC), then you are going to need an LLC operating agreement. Not only does this agreement govern the operation of your LLC, but it sets forth key details relating to the inner workings of the LLC that will be critical to clearly communicate to the LLC members. In setting forth key provisions in the LLC operating agreement, you provide clear guidance on how important matters are to be handled within the LLC. You also can help set clear expectations for LLC members and, therefore, avoid needless misunderstandin ..read more

Contracts are an integral and unavoidable part of doing business. As such, it is critical that business owners have at least a basic understanding of what goes into creating a strong business contract and what can happen when a contractual relationship does not work out. For example, knowing about what constitutes a material breach of contract can be invaluable to a business owner. A material breach is one that goes to the heart of a contract between two parties. It is one that renders the contract irreparably broken and one that essentially disregards the whole purpose behind establishing the ..read more

Regardless of the type of business you run or the size of your business, it is likely that, at one point or another, a dispute will arise. Business disputes, while common, can still be overwhelming. This is not to mention that they can take up a lot of valuable time and resources as you work to remedy the dispute. You may not be able to prevent any disputes from arising, but there are certainly actions you can take to minimize the chance of disputes and to streamline your processes so that, should a dispute arise, it can be swiftly and effectively addressed. To help you with this, we are going ..read more

Sometimes, despite our best efforts, life and the world throw us curve balls that few could have foreseen and are completely beyond your control. Because of this, sometimes a business contract you entered into may become impossible or impractical to perform. This is where a force majeure clause can come in handy. Force Majeure Clauses A force majeure clause in a contract is a provision excusing one or both parties to the contract from performing their contractual obligations when circumstance beyond either parties’ control arise which make performance of the contract either impractical or impo ..read more

The value standard in a partnership agreement is, as it suggests, the standard at which the partnership is valued. It is a critical component of a partnership agreement and one which should be serious considered before being memorialized in this legally binding contract. At some point, a partner may want to leave the partnership. In this case, the value standard will play a pivotal role in determining the equity the exiting partner has in the partnership. When an improper value standard is used, it discourages partners who want to leave from leaving which can lead to big problems in and of its ..read more

There are few things more exciting to an entrepreneur than a new business idea. As you forge ahead in making your business dream a reality, you may, at some point, find that your endeavor could greatly benefit from some help. A business partner can be a great way to bring in a particular skillset or resources into a developing business. By diversifying the skills, experiences, and resources found among those playing key roles in growing the business, you can strengthen your business and foster more sustainable growth. The role of partner in a business, however, is an important one. Bringing in ..read more

Contracts are not always honored. Breaches do occur and if you are a business owner it is an important possibility to plan for. While we put contracts in place hoping to see them fulfilled, there is always the chance that one or both parties to the contract will not uphold their end of the deal. In the event of a contract breach, the legal system provides various mechanisms for either enforcing the contract or for compensating the party impacted by the other party’s breach. Enforcing a contract or seeking damages sustained due to a breach of contract, however, can lead to some rather involved ..read more

There is a fairly wide range of business entity options from which you can choose from when starting a new business. Depending on the type of business you are planning for and who will be owning and operating the business, there may be further options still. A professional corporation, for instance, may be an option for some. Let’s take a closer look here at what a professional corporation entails. What is a Professional Corporation? Essentially, a professional corporation is a corporation that is both owned and operated by licensed professionals. Licensed professionals often include doctors ..read more

A Limited Liability Corporation or “LLC” is a popular business structure to select. It affords owners many benefits, including pass through tax benefits, flexibility, and personal liability protection. If you are an entrepreneur looking to form an LLC in Texas, here is an overview of the formation process. Forming an LLC in Texas In order to form your LLC, you must choose a name for it. Texas law requires that LLCs contain “Limited Liability Company,” “Limited Company,” or some form of the “LLC” abbreviation. The name of an LLC must be distinguishable from other businesses that have previously ..read more

Family businesses can be a great source of pride. After all, family members pour their time, financial resources, and hearts into these kinds of entrepreneurial endeavors. While they come in a variety of shapes and sizes, family businesses all maintain single family ownership. It can be difficult to keep a family business in the family. Along with the other challenges any other business can face, there are struggles that can pop up for family businesses in particular. Here, we will discuss some of the more common mistakes made in family businesses in the hopes that you can avoid them and have ..read more