Virtual General Counsel LLC
Helping Startups And Complex Business Clients Services Throughout Denver And The Surrounding Areas
Phone: 303-395-0259 Toll Free: 800-229-1646

Denver Business & Commercial Law Blog

Different approaches to business valuation

One of the most difficult aspects of buying or selling a business is determining its value. One might say that, as with so many things in our society, a business is only worth whatever someone is willing to pay for it.

However, it's essential to get a professional valuation of the business so that the buyer and seller know a baseline for their price negotiations.

When business and historic preservation collide

Merging with or acquiring a small business often means taking possession of the business' real estate, and sometimes this means the new owner is stuck with a lease or outright ownership of a building that doesn't suit its needs. It may seek to renovate, or demolish and rebuild a structure in order to make it more practical for its business.

And here is where zoning and many other complicated real estate law issues can interfere with even the best business plans.

What types of contracts must be in writing?

It's always a good idea to get a business agreement down on paper, but sometimes, for one reason or another, it doesn't happen. Most businesspeople in Colorado are familiar with the so-called handshake deal, and other types of contracts that are not necessarily in writing. Many of these agreements meet the basic requirements of a contract (offer, acceptance, consideration, competency, intent) and so will be legally enforceable. However, a law known as the Statute of Frauds requires that certain types of contracts must be in writing, or else they are not legally enforceable.

Every state has some version of the Statute of Frauds on its books. In fact, the basic premise of the law dates back to English law from before the American Revolution. Contracts that must be in writing include those that are to last for more than one year, contracts involving the executor of an estate, contracts for goods that cost more than $500 and contracts for the sale of land, and financing agreements.

Food truck owners need help getting business on the road

With the summertime comes a flock of food trucks on the streets of many other American cities, and especially in and around Denver. Just a decade ago, food trucks appeared to be no more than a trendy update to the lunch wagons and taco trucks of old. Now they represent a $2 billion industry.

A while back, the U.S. Chamber of Commerce Foundation declared Denver one of the best cities in the nation for starting a food truck business. In a review of 20 urban areas, and a survey of 288 food truck operators, the organization compared permitting and licensing, local restrictions and other factors. Ultimately, it concluded that Denver was second only to Portland, Oregon, in overall ease of opening a food truck business.

Professional guidance for new businesses

When you are starting a new business, you have a lot on your mind. You have to get your product or service ready for market, you have to find a market, deal with suppliers, hire employees, find office or retail space and keep track of thousands of details.

All that is more than enough for any one person to take on. But while you're preparing to launch your business, it's important to make sure your business is prepared for the next chapter. If you don't have the legal elements of business formation together early on, you could be setting your business and yourself up for big trouble.

Coworking spaces getting too expensive for many small businesses

If you are starting a new business, you have to make a lot of decisions quickly. You have to figure out how to develop your idea into a working business, how to hire employees and attract customers. You may even have to figure out where you are going to work.

Renting an office space is expensive, especially in urban areas like Denver, but working from home has its problems as well. Recently, many professionals, freelancers, entrepreneurs and small businesses have tried to get around these problems by opting for coworking spaces.

Businesses backing away from e-commerce over tax concerns

Since the beginning of e-commerce as a force in the marketplace, business leaders and lawmakers have argued over how to handle the issue of sales taxes. If a website for a Denver company sells a widget to a customer in another part of Colorado, should the customer pay the sales tax rate for Denver, or for the customer's location?

Recently, Colorado Gov. Jay Polis signed a law that will require website-based sales to pay the tax rate based on the destination of the sale. The law is meant to help the state comply with a U.S. Supreme Court decision, and could potentially be a boon to smaller local governments. However, the rollout of the law has been met with confusion and frustration.

State electric vehicle plan opens new opportunities

While the move away from burning fossil fuels remains a contentious issue in the federal government, Colorado is moving ahead with a cleaner-energy future. Earlier this year, Gov. Jared Polis signed an executive order intended to promote the use of electric vehicles.

Among other things, the order establishes that the $70 million the state received as a part of a settlement from automaker Volkswagen will be used in state grants for local businesses and agencies to replace older cars, trucks and buses with electric vehicles.

When does a court refuse to enforce a contract?

When deciding on a contract dispute, a court first determines whether the parties had a valid contract. The court must find that one party made an offer, the other accepted it, and they must have exchanged something of value in exchange for a promise.

This last element is known as the requirement of "consideration," and the consideration can be almost anything of value, including another promise. The point is to show that the parties entered into the agreement knowingly. If the court finds offer, acceptance and consideration, then it determines that the agreement met the requirements of a contract.

Choose the right type of partnership for your business

Simply put, whenever two or more people own a business together and share in its profits and losses, they are said to have a partnership. However, it is always a good idea to get a partnership agreement in writing, so as to make sure everyone has the same expectations. A written agreement can save a lot of headaches later on, if or when the partners have disputes or decide to part ways.

The first step in creating a partnership agreement is to decide what type of partnership it should be. The most common forms are general partnerships, limited partnerships and limited liability partnerships.

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7900 E Union Ave
Suite 1100
Denver, CO 80237

Toll Free: 800-229-1646
Phone: 303-395-0259
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