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Do You Need a Business Lawyer?

business lawyer.jpgMany entrepreneurs or business owners (of small and large businesses alike) are go-getter types of people, are not afraid to take calculated risks, and are accustomed to relying on themselves and their colleagues to make smart business decisions. But in some cases, reliance on an attorney can be important to secure assets, avoid unnecessary risks, and maintain your interests in the courtroom (if it comes to that). Do you need a business attorney? Consider some common scenarios in which legal counsel could be indispensable to your business success:

You Need to Make "Special Allocations"  

Special allocations are made when a business plans to split profits and losses in a proportion different from the owners' percentage interests. Tax evaders often use special allocations to hide potential tax dollars or manipulate tax brackets in their own interests, so the Internal Revenue Service pays careful attention to special allocations to ensure that every provision is lawfully and correctly made. Tax and business attorneys can be a great help in ensuring that everything is completed with minimal errors, which is essential because if the IRS rejects your special allocation plan, it will tax you and your business according to your ownership interests and completely disregard valid and lawful allocations you intended to make.

An Environmental Issue Arises

An environmental issue, no matter how small, and regardless of whether it is related to manufacture, sale, real estate, or construction, carries heavy penalties, including some arising under federal law. If an environmental issue arises, you will almost definitely need an experienced legal hand by your side to navigate the intricacies of environmental protection laws.

You Are Attempting to Buy or Sell a Business

Mergers, acquisitions, and other mass movements of business property involve rearrangements of assets and liabilities and compliance with state and federal laws and regulations. You will need to select the most advantageous structure for merger or acquisition, negotiate letters of intent, procure finance for the transaction, and take steps to protect confidential information appropriately. An experienced business attorney will be invaluable to ensure that each step is taken properly and nothing is forgotten.

You Intend to Become Involved in Franchising

Franchising, like the other business activities discussed above, is bound under federal and state regulations, as well tax regulations. An attorney can assist you in ensuring your compliance with all requirements and navigating the franchising process, including filing necessary forms, developing business and franchising plans, and advising on the development of your brand and products.

While these are just some of the most important times to retain an attorney, there are many other occasions in business ownership and management that may require legal counsel. And there are many more in which the help of an attorney may be beneficial or may be the best way to protect your rights or interests. If you are a business owner, partner, or manager, or you are considering becoming one, contact our skilled San Jose business law attorneys today for a consultation to learn how we can help you.

Source:

https://www.irs.gov/Businesses/Partnerships/Partnership---Audit-Technique-Guide---Chapter-6---Partnership-Allocations-(Revised-12-2007)

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