Business Law
Protecting your business, the right way.
Forming a business entity can protect you and your business against liability, set out the rules of the business, and help lay the foundation for a successful endeavor. In Texas, there are several types of business entities: limited liability companies (LLC); limited partnerships (LP); for-profit corporations (Inc.); non-profit organizations (501(c)(3)); and assumed name or fictitious businesses (DBA). Selecting the correct business entity is one of the most important decisions to make before you begin a business.
Typically, it only takes a few days to get your business formation documents back from your state’s Secretary of State office. That being said, it can take more time for the owners of the new business to iron out the details and finalize the operating agreements.
Why is drafting and negotiating contracts important for my business?
Contracts are tools to help businesses operate smoothly. They are legally enforceable agreements that provide necessary and required legal protections needed in any operation. Contracts minimize risk, create clear guidelines and expectations, and outline the rights and responsibilities of all parties. More so, contracts are used to ensure clarity, identify boundaries, and establish the legal relationships and protections to protect you and your company. Establishing a good contractual relationship also builds trust.
What contracts do I need to protect my business?
It depends on several things, such as, what stage of business are you at, what kind of business you’re doing, and what you are trying to protect your business from. Here are a few examples of contracts that can help protect your business:
- Operating Agreements: Governing document that outlines the business’ financial and functional decisions including rules, regulations, provisions etc.
- Licensing Agreements: Allows the owner to control and protect their intellectual property while allowing others to use it.
- Non-Disclosure Agreements (NDA): Creates the legal framework to protect ideas and information from being stolen or shared with competitors or third parties.
- Consulting Agreements: Establishes clear expectations between the entity/company and consultant who is hired.
How much does contract drafting cost?
It depends on a few factors such as the type of contract, its complexity, and how much time it takes to write and edit the contract to your satisfaction. Call us to discuss in more detail the estimated time and cost to get your business protected.
