Often, the initial contract a small business encounters is a lease. Securing a location is typically the first order of business after conceptualizing an idea and securing investment money. This is a common area where our law firm steps in to assist small businesses in navigating the contractual landscape. However, it’s also essential to pay close attention to contracts that pertain to your revenue streams.
For instance, if you’re in the business of manufacturing and selling expensive scientific equipment, defining the terms of sale in a contract is crucial. This foresight ensures that when you acquire your first customer, you are not left scrambling or feeling desperate, but instead, can present them with your standard contract. Our firm emphasizes the importance of having such contracts tailored to different scenarios, ensuring flexibility whether your products are high-end or more moderately priced but sold in volume.
The Importance Of Seeking Guidance On Human Resources Matters
Almost every business, regardless of its size or industry, can benefit substantially from expert guidance in human resources. Addressing whether or not to have employment contracts is a pivotal discussion that businesses should have with their attorney. It’s also worth noting that while there can be disadvantages to having employment contracts in certain states, like California, there are also potential benefits, even in states where such contracts are usually advised against.
What’s more, documenting the terms of employment is imperative, as we’ve witnessed situations where discrepancies in agreed pay have led to labor board actions. The absence of written records or offer letters in such cases can lead to complications. Thus, if not entering into contracts with every employee, having a foundational offer letter in place is essential.
The Factors That Should Be Considered When Bringing A Real Estate Investor Into A New Business
When a business with significant potential, especially in the product-based sector, needs capital to transition from its current state to mass-selling its technology or products, bringing in investors becomes a vital consideration. This step, however, often necessitates relinquishing a part of your ownership.
Evaluating your comfort level with this exchange is a pivotal first step. Various alternatives exist, such as securing a line of credit, obtaining a business loan, or engaging in convertible promissory notes. Working alongside a business attorney to structure the terms for investors is fundamental given the intricate and regulated nature of securing investments.
How Our Firm Can Aid In Vetting Investors & Structuring Investment Transactions
Vetting potential investors is a critical process, and our firm assists by preparing qualified investor questionnaires. These documents are essential in assessing the investor’s financial standing, business acumen, experience, and overall sophistication in investment matters. Once the potential investor clears this initial stage and expresses a continued willingness to move forward, our firm provides comprehensive guidance on structuring the transaction.
The considerations at this stage are multifaceted, encompassing whether the transaction will take the form of debt, convertible debt into stock, or pure equity. Depending on the business entity, we also explore different levels of shareholder preferences and rights. Compliance with both federal and state law is paramount, especially considering the regulations set by the Securities and Exchange Commission (SEC) and corresponding state entities, all aiming to protect the investors.
Why Marketing Guidance And Compliance Assurance For New Businesses Is Important
While our firm occasionally offers suggestions based on our diverse experience with various business clients, our principal role revolves around ensuring compliance. Clients who are proactive in safeguarding against accusations of false advertising often consult with us to review marketing materials for compliance with state laws. Different industries have distinct compliance requirements and disclosure mandates.
For example, some necessitate the identification of models or actors in advertisements, while others require clear labeling of promotional materials to avoid public confusion. Our goal is to help businesses navigate these marketing laws, which, like securities laws, are designed to protect the public’s interest. Regular consultation with your business attorney regarding marketing materials is recommended to ensure compliance and avoid potential legal pitfalls.
For more information on Contracts And Other New Business Needs, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (831) 480-6608today.