How do I ensure that my independent contractors are not my employees?
As a business owner, you might prefer to hire independent contractors instead of employees so you can receive services as needed without having to provide your contractors with employment benefits. This manner of contracting for services can be beneficial, but if you do not have a proper agreement in place and if you do not […]
Empowering Your Corporation: Options for Business Financing
A loan is secured when the borrower puts up an asset (or assets) of value as collateral, which you, as the creditor, can seize if the borrower does not repay your loan. The bigger the loan, the more collateral you will need to secure it. A loan can be secured in many ways, including: a […]
Should I loan the purchase price to the buyer of my business?
In our last blog, “Should I accept financing from the seller to buy my business?”, we discussed some of the pros and cons of a buyer accepting vendor financing. This blog, on the flip side, discusses the pros and cons of vendor financing for the seller. Benefits of vendor financing for the seller: Reduced delays. […]
What should I include in my Shareholder Agreement?
Most shareholder agreements will address the following core issues with appropriately customized terms: (a) decision making; (b) restrictions on share transfers and ownership of shares; (c) financing; (d) pre-emptive rights; (e) rights of first refusal; (f) mandatory sales of shares; (g) conflict resolution; (h) non-competition, non-solicitation, and non-disclosure; and (i) shareholder exit strategies. Decision making […]
What is a shareholder agreement and why do I need one?
A shareholder agreement is a written agreement between shareholders, which sets out shareholder rights, protections, and obligations; the method by which shares will be valued; and how the corporation and its business will be structured, managed, and operated. A shareholder agreement can ensure that shareholders are treated fairly and can minimize disagreements by clarifying how certain matters […]