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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

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.

Illinois businessmen and businesswomen who would like to own their own business have two options: start your own business or buy someone else’s. There is a certain sense of pride that comes along with becoming an entrepreneur, formulating your own business idea, and starting from the ground up. However, people often forget the number of benefits that come along with purchasing a business and becoming its new owner. Before deciding which plan you would like to use, it is important to have the following practical considerations in mind.

1. The Comparative Costs of Starting and Buying

   
   

There is no single price tag for starting or buying a business. The costs can greatly fluctuate depending upon the industry, business plan, timing, and more. Before making a decision one way or the other, consider the costs of each. When starting a business, you will need to spend time and money looking for a suitable location, employees, means of production, advertising, and much more. If you purchase an existing business, many of these details will already be nailed down. While you may still wish to adjust some of these details, you can choose to do so over time when you have adequate funds in place.

2. Immediate Cash Flow

   
   

Purchasing an established business means that existent customers are already in place. You will not have the in-between time spent funding your business with no customers to help cover the

Anyone who is starting a business will need to select a business entity or model with which they will follow. A corporation and limited liability company (LLC) are two different types of business entities that both offer their own benefits. Depending on how you would like ownership, taxation, and management to look for your business, you can select a business entity that reflects these professional goals. You may have an idea of how you want your business to run, but may not be sure which business entity this aligns with. Before deciding upon your business entity, speak with a reputable business attorney for advice on how to proceed with your business.

Business Ownership

If you are beginning your business with a few investors or partners in mind, you should understand how corporations and LLCs differ in this regard. In corporations, the ownership of the business is divided by shares of stock purchased by owners, known as shareholders whereas LLCs’ owners are called “members.” These shareholders can determine how much ownership they would prefer to have by purchasing additional shares to own a larger percentage of the company or selling their shares if they wish to reduce their ownership amount. Corporations are a good option for those who are seeking outside investors.

LLCs do not look at ownership through the same financial lenses. LLCs can have as many owners as they want and their financial contribution does not have to determine their “level” of ownership. Instead, many

Many small business owners opt to have a limited liability company (LLC) business structure. This provides the owner, or multiple owners known as “members”, with more personal protection but less formality than other business entities. Those who decide to follow an LLC structure should have an operating agreement in place to ensure that all members are on the same page and the business’s functional and financial dealings are explicitly outlined. Operating agreements are not required for LLCs; however, they offer a number of benefits and are always a good idea when starting your business. For help with the legal side of your operating agreement, work with a reputable business attorney who can guide you through the legal document’s details.

What Is an Operating Agreement?

For LLCs that have multiple members in charge of the company’s dealings, an operating agreement is a good way to maintain continuity between the owners and management. An operating agreement is a legal document that describes the operations of an LLC and includes agreements between the business’s various owners. The document acts as a rules and regulations manual and partnership agreement to meet the specific needs of all of the members. Once the document is formulated with an attorney and signed by all of the LLC’s members, it is legally binding in the same manner as a business contract.

What Benefits Do They Offer?

Since every operating agreement is tailored to meet the needs of your LLC, there