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Baton Rouge Business & Commercial Law Blog

The basics and benefits of a merger

A merger is a major event for any business but can also be a good and exciting opportunity for a business.

A merger can provide a growth opportunity but will likely have a significant impact on both businesses that are merging and stakeholders including shareholders, directors, managers, employees and customers.

Business formation is an important step

Business formation is a vital part of starting any new business endeavor. Sometimes it is an overlooked part of the process of forming a new business but because of its implications, should not be.

Business formation has a significant impact on the daily workings of the business; who controls the business and makes decisions for it; how the business and those engaged in the business are taxed; and the personal liability that those engaged in the business may have if anything goes wrong. For all these reasons, it is important to understand the different business forms and what they have to offer.

What is a zoning variance and how can I get one?

There are different methods of addressing an unfavorable zoning ordinance and one of them may be to seek a variance. When zoning laws are concerned, it can be helpful to understand the different legal tools and options available to help property owners when zoning-related issues pop up.

A property owner may wish to apply for a zoning change when their use of the land is inconsistent with zoning laws applicable to the property. Usually a request can be made by paying a fee which will be followed by a hearing process, usually with a zoning board, where the property owner can present information related to the request for the change. Appeals options may also be available. Because the process for seeking a zoning change can vary, it is important that you are familiar with the laws in your area.

Asset-based lending basics

When considering commercial real estate, financing options are always an important consideration and may also sometimes be a concern. While there are many different options, one option to understand is asset-based lending.

In the most basic sense, asset-based loans are loans that are loans that are based on assets that are used for collateral. Typically, for a business, assets will include accounts receivable and inventory of the business. Asset-based lenders will commonly advance funds based on an agreed percentage of the value of the secured assets. The agreed percentage is typically 70 to 80 percent of the business's eligible receivables and 50 percent of the businesses' finished inventory.

Remedies for breach of contract

A breach of contract can cause serious problems for a business that relies on a contract relationship it has with its business partners. As a result, it is important for businesses who are seeking to enforce a contract or have been on the receiving end of a contract breach to understand their legal rights and remedies.

A contract is an agreement between parties that outlines their rights and obligations to one another. In the context of a business setting, a contract memorializes the business relationship between the parties. In the course of business, a company may encounter breaches of real estate contracts, business contracts and other contracts. Each breach of contract can cause financial injury and disruption to the company.

How can you plan for a sale of a business?

The decision to sell a business may be a tough one, or it may be a relatively easy one. In either case, once a business owner in Louisiana has decided that selling the business is what is best, they may have questions about how to approach the sale and how to sell their business. It is always helpful to have a plan for selling your business.

There are several important steps associated with the sale of a business that business owners should be familiar with. To begin with, potential buyers will likely want to know the reason you are selling the business. Purchasing a business that is not profitable can be unattractive to potential buyers or lower the purchase price, so the timing of the sale will be important in terms of the selling price and the potential profits to be gained from the sale. It is important to enlist a valuation expert to value the true worth of the business, which will help you price it attractively for when you plan to sell it.

Grocer acquires 7 stores in Louisiana with plans to expand

The merger or acquisition of an existing business can be an excellent growth opportunity for a company looking to expand. A grocer based in a neighboring state recently acquired 7 grocery stores in Louisiana formerly operated by another grocer. The grocer that is expanding noted that the 7 new grocery stores adds to its footprint which now includes Louisiana and two neighboring states. The grocer now operates 47 locations in the 3 neighboring states.

The grocer noted that it always looks to expand its services to its customers. Mergers and acquisitions can present a valuable business opportunity for a company looking to expand the products and services it offers. In most situations, it is best for a merger or acquisition to provide value including a complimentary set of products or offering of services, or complimentary infrastructure, that can be a useful addition to the existing company.

Steps for dissolving a business

There are a variety of steps involved in dissolving a business and it is important to know what they are and be familiar with each. The requirements may also vary by state so it is also important to be familiar with the requirements in your state and is a good idea to be familiar with business law generally.

Business owners may want to wind down their business for retirement purposes, financial reasons or other reasons. The dissolution of a business process begins with closing the business according to the process laid out in the business articles. Business articles are not something that sole proprietors will have. The next step is to file with the state letting it know that the business has been closed. Though sole proprietors also do not need to meet this requirement, they will want to make sure to conclude all outstanding business with creditors and others.

A look at different business forms

This blog recently looked at selecting the best business form for any business so it might be helpful to take a look at the different business form options that are available. As recently discussed, there are a variety of important impacts the sometimes seemingly meaningless selection of a business form has related to control of the business, the daily activities of the business, tax consequences, regulatory requirements and liability for the business and its members.

Selection of a business form is anything but meaningless and should always be carefully understood and considered. One of the most common forms for businesses is the sole proprietorship. While this provides complete control for the sole proprietor and some tax benefits, it does little to limit liability of the sole proprietor. Partnerships are another common business form that allows partners to share control of the business. Additional options to limit liability may be available for partnerships.

The importance of business form selection

Forming a business is an exciting opportunity but one that should come with the right guidance concerning business formation and the importance of selecting the right business form for the venture. Business form selection should be able to help support the business's growth as it begins but also as it grows, changes and evolves and develops into the successful business the business owner envisions.

Business formation impacts many areas of the business people may not always think of. Selection of a business form can inform how a business is run and control of the business and who will have input about how the business is conducted. In addition, it has important tax implications and consequences that business owners should be thoroughly familiar with when selecting a business form that is best for them and their business.

Dale M. Maas, Attorney at Law
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Baton Rouge, LA 70816

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