Denver Business & Commercial Law Blog

Questions to answer alongside a potential business partner

On behalf of Virtual General Counsel LLC posted in Business Formation on Tuesday, July 14, 2020.

You're all set to go into business with a partner. While you're confident that things will work out, you're likely to have some reservations. It's natural when making such a big decision.

Rather than blindly jump into the partnership, the two of you should get together to answer key questions and address any potential concerns. These questions are a good place to start:

Will we each own 50 percent of the business?
What title will both of us hold?
What are our individual responsibilities?
Will one or both of us have control of the company finances?
What's the best way to deal with future disputes?
What type of business structure is best?
What system will we use to ensure that both partners are living up to their side of the agreement?

The art of negotiating small business mergers in Denver

On behalf of Virtual General Counsel LLC posted in Mergers & Acquisitions on Tuesday, June 30, 2020.

The deft handling of mergers and acquisitions is an art that many small business owners in the Denver area fail to master. Although they realize that merging with other businesses helps them achieve success, they tend to avoid this complex part of business growth.

To remain relevant to consumers and continue an upward growth trend, learning more about mergers, and acquisitions as well is vital. You can invest the time to increase your knowledge of these issues, but many choose to rely on legal professionals for assistance. A law firm with a history of handling successful mergers can help you on at least two fronts.

Jointly owned businesses may benefit from a founders agreement

On behalf of Virtual General Counsel LLC posted in Business Formation on Tuesday, June 16, 2020.

Many small startups in the Denver area are born out of the contributions and ideas of several individuals. In most cases, the co-founders of a new business agree on many critical principles at first. However, disagreements can arise over time, putting the business at risk of failure.

One of the ways attorneys like us help entrepreneurs with their business formation efforts is by suggesting personalized startup strategies. When more than one person starts a business, we often suggest creating a founders' agreement. This tool can go a long way in helping founders make decisions early on to avoid problems once a business begins to flourish.

Contracts: Should small businesses offer severance packages?

On behalf of Virtual General Counsel LLC posted in Contracts on Tuesday, June 2, 2020.

Severance packages are usually associated with massive corporations, but small business owners may also benefit from offering severance agreements. Sometimes, employers and employees agree on severance packages after employment begins or when a termination occurs. Other times, severance provisions are addressed in employee contracts signed at the beginning of the working relationship.

If you are reading this, you probably don't run a massive corporation but are a small business owner operating in Colorado. As such, you may not be able to afford to offer all your employees severance pay. However, offering severance packages may be worth your while.

Business formation -- the pros and cons of corporations

On behalf of Virtual General Counsel LLC posted in Business Formation on Monday, May 18, 2020.

One of the earliest decisions you will make during your business formation efforts is choosing its legal structure. While it may sound like a relatively simple step, the structure you choose now will influence your business activities going forward. Making an informed decision about your structure early on will save you from problems later.

Many Colorado entrepreneurs choose to structure their business as a limited liability company (LLC). This structure does offer many advantages such as protection from liability and tax benefits. However, corporations also offer valuable benefits.

Attract investors and employees: Corporations can issue stock, which attracts those interested in investing in a business. Offering stock options to staff members can also attract quality employees.
Established management: Since corporations have an established management system, they often operate more smoothly than other legal structures.
Liability protection: Like an LLC, a corporation protects business owners from legal liability to a limited degree.

What does a fair employment contract look like?

On behalf of Virtual General Counsel LLC posted in Contracts on Monday, May 11, 2020.

Owning and operating a small business in the Denver region typically means having at least a few employees. In bygone days, managing a workforce was much simpler. You accepted applications, interviewed your candidates and hired the person you thought best for the job. After that, you either kept the employee because he or she did a good job, or you let the worker go and looked for a replacement.

In the 21st century, hiring and managing workers is often complicated. Both workers and business owners are much savvier about employment law, meaning both parties want to protect their rights. A simple way to ensure mutual protection is to use employment contracts.

Hostile acquisitions: What is the white knight defense?

On behalf of Virtual General Counsel LLC posted in Mergers & Acquisitions on Tuesday, April 14, 2020.

As a business owner in the Denver, CO, area, you are deeply committed to protecting your business interests. Protective measures can take many forms. Sometimes, a business merger is the best way to ensure your business endures and continues to thrive. Mergers are something all parties agree to and are rarely hostile.

What if another company seeks to take over the business you have worked so hard to create? You may think your company is safe from an unwanted acquisition, but it might be more at risk than you think. You have probably heard the term hostile acquisition or hostile takeover, which means that one company tries to take over another by way of shareholder voting.

Business formation: Simple tips for new business owners in Denver

On behalf of Virtual General Counsel LLC posted in Business Formation on Wednesday, April 8, 2020.

Owning a successful small business is a dream many Denver residents have in common. You get to decide how much or how little you work while remaining in control of your future. This all sounds wonderful, but the success or failure of a new business cannot usually be predicted.

You will probably plan your endeavors carefully while you are in the process of business formation, addressing matters like building clientele and marketing. However, it is also wise to consider legal matters to help you avoid mistakes that could turn a potentially successful business into a failure.

Building better business contracts in Denver

On behalf of Virtual General Counsel LLC posted in Contracts on Thursday, March 26, 2020.

Owning and operating a small business in the Denver, Colorado, region usually means that you will need to create one or more business contracts. The days in which parties made agreements by way of a simple handshake have faded away. Now, business owners need much more protection than they might have needed in those bygone days.

Our attorneys have a great deal of experience helping people build fair and effective agreements in written contract form. This experience has given us much insight into what makes contracts function well and what can make them fall apart. We would like to share some of our insight with those operating a business in the area. The following tips can make certain your business contracts always work to protect your best interests.

Mergers a Acquisitions: Tips for small business mergers in Denver

On behalf of Virtual General Counsel LLC posted in Mergers & Acquisitions on Tuesday, March 10, 2020.

Creating a merger between two separate businesses usually comes with many benefits for the small business owner. Examples of such benefits include:

Lower operating costs
Access to new clients
Opportunities to collaborate
Increased product research and development

Unfortunately, the field of mergers and acquisitions seems especially complex to small business owners in the Denver region. As a result, many of them hesitate to consider a business merger, even when they are struggling to continue operating.

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