Indianapolis, IN Business Dissolution Lawyer
The United States Small Business Administration compiles statistics related to business formation and closures. The administration found between the years of 2004-2009 an average of 630,000 businesses were created while an average of 615,000 businesses were closed each year. For businesses of all sizes, the decision to dissolve or break up a business can be just as important as the decision to create one.
Not all business dissolutions need to be contentious. When potential business partners discuss the formation of a company, they can be well-served by also discussing and creating an exit strategy in the event that a partner needs or wants to leave the business in the future, retires, or dies. This exit strategy often takes the form of a buy-sell agreement.
Buy-sell agreements can help business owners on both sides of the dissolution transaction. This agreement will state who can buyout the ownership interest of the exiting party. Can the spouse or child of a departing business partner purchase their stake in the company? Your buy-sell agreement should include language that addresses this issue.
What happens to the ownership stake of a business partner who becomes disabled or dies? Again, this is one of those instances when having a buy-sell agreement in place can be invaluable to the continued viability of a business.
How does a person’s stake in a company get valued in a buyout situation? A well-crafted buy-sell agreement determines whether an ownership stake will be valued by an agreed value, appraisal, or another valuation method. Having a standard for valuation determined when the agreement is put into place can help avoid disputes and possible litigation.
A buy-sell agreement can be drafted during the creation of a business entity or any time after a business has begun operations. The experienced Indianapolis business law attorneys at Cohen & Malad, LLP work with businesses of all sizes to protect owners’ rights by assisting with the negotiation or drafting of buy-sell agreements. We can also review your existing buy-sell agreement and address concerns you may have regarding your legal rights and options as a business owner.
Business Conflicts & Break-Ups / Business “Divorces”
Business disputes can lead to a partnership break up. Disputes can also occur as a result of the decision to break up a business. Regardless of how it happens, protect your interests by hiring a capable Indianapolis business dissolution lawyer who can aggressively negotiate your position or pursue legal action on your behalf.
Closing or Winding Down a Business
In some cases, partners may decide that a business is no longer viable or that they mutually have no desire to continue operations. Business partners can end their partnership by winding down and dissolving the business. Having a strong business law attorney working for you can help you to file the necessary paperwork with state and local government to dissolve your business as well as deal with vendor, creditor, and employee issues that may arise.
Some common steps involved in closing a business include:
- File dissolution documents
- Canceling permits, licenses, etc.
- Finalizing employment and labor law issues
- Closing out business debts, paying taxes, and closing accounts
Hiring an attorney to help you with the process can minimize risk to your personal assets and ensure proper legal procedures are followed in the closing of your business.
Our business and corporate law attorneys are experienced in handling complex legal issues that usually accompany business breakups. We can help you understand your legal rights and options and advocate for you in contested business matters. If you are looking for an attorney who will fight for you, contact us.