Starting and managing a business of any size involves legal agreements and money.
If your attorney only helps you in forming the legal entity and does little else, why did you need your attorney except for properly completing a ministerial function? You are really investing in your attorney's time and experience.
Over the many years of being in the legal business, private and public enterprises, engineering of raising sufficient capital and navigating bank, finance, investor cash contributions and how best to structure these important subsets of creating a successful business need the services of a knowledgeable business counselor, visionary and detail-oriented attorney. Business formations are done for many reasons. Often these are done to live out a life expectation and dream. Prudence dictates that planning is extremely important. However, as people, we often feel compelled to just get started and learn as we go. Most business plans are not well documented due to limited time and resources of entrepreneurs or the belief that the idea needs be “live” or it's a missed opportunity.
Business schools and psychological studies show that the most successful businesses actually follow patterns and even then, timing and luck are very commonly cited elements of success. While many studies suggest businesses fail not because of not having enough money but usually because the founders did not truly plan and distinguish what they control and what they do not control.
A forward-looking attorney who takes time to understand your personal ideas, how to protect them, how to help you generate success as you define it, needs to be working on your side. At Zacks Law LLC, we fully recognize that people create and grow businesses all the time and yet, they often do not engage their attorney on a strategic basis, but only to address specific transactional tasks. This in our view leads to unforced errors and mistakes, many of which individually can be overcome, but at a certain point, just like rolling a snowball up a hill, hit that breaking point where the immediate concern becomes salvaging the good parts and people or restructuring the business or worse. While the law of business enables some to bankrupt their mistakes or use bankruptcy to restart free from some debt, it's quite common for failed businesses and people to accept the inevitable failure and move on without winding down the business in any formal way. This real-life situation is worse in “lifestyle” business. These are businesses that create income for the owners and yet do not make significant free after cash tax flow. These events cause many unintended future consequences unless funds, time, and effort are set aside to shut down future legal claims.
Many believe that simply by creating a company they have separated their liability from future concerns. While forming a company can be an impenetrable legal shield from personal liability, there are many situations where that does not happen because of super priority rules, responsible party assessments or the way a company is closed down opens the control people to exposure, consequences, and headaches that with a little planning and effort can be minimized and even eliminated.
Consider that when forming a business you need money, legally recognized structures to minimize risks, and that through planning with practicing attorneys you will save money, time, and aggravation.
While this is heavy on information and negotiations as most attorneys know the tools available only, attorneys who have both business, F.A.T. ™, and transaction experience combined with complex litigation, arbitration, mediation, and business experience will truly help you make informed choices and planful success.
A Written Plan
Timing-Tax 3-1-3 Litigation 30x720
Bankruptcy & Fresh Starts