Business Law | Shakfeh Law LLC

Profit Sharing Tips for Illinois Businesses

Posted on November 17, 2020

If you have an entrepreneurial spirit, you may have dreamt of being your own boss someday or building a company from the ground up. Starting your own company or going into business with a partner is a major endeavor, not to be taken lightly. In a business partnership, you and your partner can split the profits any way you want, as long as you both agree to the terms of the arrangement. When business partners start a new company, they typically bring different skills and assets to the table. It is not uncommon for one partner or partners to bring in cash and the others to bring managerial experience or industry knowledge. The key issue here is then how to appropriately compensate each partner and where to allocate the liability. The legal aspects of running a business can be intimidating, so that is why you should consult with an experienced business law attorney before embarking on this type of endeavor. In order to avoid any disputes when a company becomes successful, fails, or if there is a third party lawsuit, it is imperative to consult an attorney to properly allocate profits—and liability—to minimize harm later on.

Limited Liability Companies and Profit Sharing

Limited liability companies (LLCs) are an ideal way to share profits and distribute liability between partners (or as known in LLCs: “members”). LLCs are incredibly flexible and can be custom designed for your business’ specific needs. LLCs can be designed in the following ways:

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What Is Involved in the Business Contract Review Process?

Posted on October 19, 2020

For any business owner, it is imperative that all agreements related to the company are put in writing in order to protect his or her rights and interests. However, business contracts are important for outlining the expectations of the parties on all sides, whether a business, vendor, or employee. In simple terms, a contract is a legal document that governs the relationship between two or more parties. These contracts should be carefully reviewed by all involved parties because it is important to take into consideration what other factors impact this type of relationship, including any relevant laws or statutes.

Types of Business Contracts

Different types of business contracts define terms of an arrangement, which can be between various parties. Business partners may enter into an agreement that defines their roles and responsibilities and the consequences if one partner leaves the company. The nature of that contract depends on whether the business partners are part of a limited liability corporation, partnership, or corporation. Another type of contract is an employee agreement, which outlines the roles and duties of the employment, salary and overtime pay, hours, paid time off (PTO), medical leave, healthcare benefits, as well as non-compete agreements. Additionally, confidentiality clauses restrict employees from taking trade secrets and going to work for a competitor. Another type of business contract is a vendor agreement, where business owners hire third-party vendors. Vendor agreements typically outline the duties they are performing, prices, intellectual property, confidentiality, non-compete terms,

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Understanding the Terms of a Non-Compete Agreement in Illinois

Posted on October 7, 2020

As a business owner or an employee, it is important to understand the contracts you are signing, whether you are a new employee accepting a job or an employer offering a job. Regardless of your level or position at the company, you should not overlook the details of any contract. Business contracts can be complicated with a lot of legal details that may be difficult to comprehend. For example, many people may not know what a non-compete agreement, which is a type of “restrictive covenant,” entails. As an employer, if you wish to enforce a non-compete agreement (also known as a “covenant not to compete”) in regard to an employee, you must draft it carefully according to the standards outlined by Illinois courts. A non-compete clause can be confusing, but you will have an advantage in negotiations if you understand the requirements for enforcing this type of legal document. Whether you are the company owner or the employee, an experienced business attorney can assist you during this process to make sure your rights are protected. The following are some important issues to consider when drafting or signing a non-compete agreement in Illinois.

What Is a Restrictive Covenant/Non-Compete Agreement?

A non-compete agreement is a stipulation within a contract that typically prohibits an employee from going to work for another competing company or starting his or her own competitive business for a certain period of time. The main purpose of this restriction is to prevent an employee from leaving

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Stock Sale Versus Asset Sale in a Business Acquisition

Posted on September 24, 2020

If you are considering selling your company, it is important to understand the few ways that this can occur. Maybe you wish to fully sell or perhaps you would like to continue owning a certain number of shares to stay connected to your business. Whatever route you are leaning toward, it is a good idea to discuss your options with a business lawyer to have a full grasp of the pros and cons of each sale type. At Shakfeh Law LLC, our business attorney is prepared to help you with every step of the sale process, starting with explaining the legal terms and options surrounding business acquisitions.

For Better Legal Understanding

As a business owner, you may have a team to help you understand the complexities of business law. Before comparing asset and stock sales, you should first have an understanding of the terms being used. The term “business acquisition” refers to when one company purchases a company in order to fulfill particular strategic goals related to revenues, market share, product or service offerings, or competition. With stock sales, the purchasing party is given shares of the business. Once the buyer holds all of the target shares, the buyer has control of the business by becoming its owner. In an asset sale, the purchasing party is given assets. Once the buyer has all of the company’s assets, it controls the business since he or she holds everything that made the seller’s equity worth something such as intellectual

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What Are the 3 Stages of Purchasing a Business in Illinois?

Posted on September 8, 2020

Many business professionals dream of owning a business, but they may not want to start from scratch. While entrepreneurialism is a common way to own a business, it can also be daunting and risky. Building a business from the ground up involves much more than just coming up with a product or service. A business structure must be selected, a location for the establishment must be found, employees must be interviewed, hired, and trained, and that is just the tip of the iceberg. And did I mention the marketing and breaking into the chosen industry? An alternative to this risky endeavor is buying a business that is already established. While the company will still require time and dedication, the groundwork for the business has already been laid, alleviating the risk of starting a new business. That said, buying a business also comes with its own risks that require the advice of a few experts, including a knowledgeable Illinois business law attorney.

Discovery and Research

Numerous businesses are for sale and you should never settle for the first one that you find on the market. First, you should decide which type of business you want to buy. Depending on your past professional experience, you may want to stick within the same field or you may have realized that you would like to forge a new path. Choosing the industry that you would like to work in and finding an appropriate-sized business for you is a critical first step.

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Category: Business Law