It is estimated that only 30% of partnerships have a legally binding Partnership Agreement – amazing when you consider the risks to a business of not having one!

     Your client base is an asset worth protecting.  Having an employee leave with clients or other proprietary information, and go to work for a competitor, or to open a competing business, can cause a severe setback for your business. Not having an employee sign a non-compete and nondisclosure agreements can be a mistake.  Without one, employees are free to transfer portable relationships, customer lists or proprietary information to a new job or business. Putting non-compete and a non-disclosure agreements in place will provide the assurance and peace of mind necessary to help you grow your business free from those concerns.

    Commercial lease agreements explain which maintenance and repair responsibilities are assigned to the Tenant and which are assigned to the Landlord.   Most frequently Tenants are responsible for maintaining the leased portion of the premises.  Tenants are required to repair and maintain the heating and air conditioning, plumbing and electrical systems. The Landlord will maintain the roof and structural elements of the building. In a “triple net” lease, the entire obligation for repair and maintenance is shifted to the Tenant. Many Tenants are surprised by the repair provisions of their leases, and first become aware of them when a major repair is required.

     If a lawsuit is brought against a business or LLC, it’s not unusual for a shareholder or member to be named as an additional defendant. This means that someone is seeking a judgment not only against the company, but also against its owner. This raises an important question. If you incorporate or form a Limited Liability Company to shield shareholders or members from liability, how does one become personally liable? Why and when are lawsuits brought against persons individually? 

   When all else fails, you may consider filing a lawsuit to collect on delinquent accounts. But you may not be comfortable taking this course of action. You may fear that it will be too costly, or that legal fees will end up being more than the amount recovered. However, this is not always the case. Understanding how the Courts operate will help explain why.

   Many small business owners don't understand the terms of their lease. The guarantees, assignment and other clauses can have a detrimental effect on your business.