Sometimes, it only takes a moment of serendipity -- a great idea for a new product, the recognition of a need in the community or an agreement between two professionals to combine their business efforts -- for a person in Baton Rouge to start a new business. However, these days, starting a business takes more than a mere handshake. There are a number of things one needs to consider before starting up a business.
Residents of Louisiana keeping track of the banking industry may have been surprised to hear that the U.S. Federal Reserve recently approved the acquisition of Suffolk Bancorp by People's United Financial, given that the resulting financial institution would have approximately $43 billion in assets. This move was announced alongside a policy change that could make it more likely to see such mergers and acquisitions in the future.
One of the worst nightmares of small business owners in Louisiana is the decision of a key employee to quit and accept a job with a competitor. One solution to this problem is the non-compete agreement in which the employee agrees not to accept a job with a competitor or otherwise compete with the employer. Louisiana law sharply restricts the use of such agreements, but in the right circumstances, a non-compete agreement can be enforced and can protect the employer's business against encroachment from competing corporations.
Most people in Louisiana these days have heard of the terms "merger" and "acquisition" in connection to business dealings, although they may not know exactly what the difference between these terms is. While the terms "merger" and "acquisition" are often used interchangeably these days, technically they are two different business transactions. A merger takes place when two separate business combine in a way that creates an entirely new business entity. The consolidated new business entity has a new owners and a new management structure.
One of the first decisions entrepreneurs have to make is what type of business to register as. The type of business structure selected has significant impact on the business and consequences for the future of the company, including tax implications, liability concerns and how the business will be operated. Two different business types, among others, include corporations and partnerships. The basic structures of corporations and partnerships are quite different. Entrepreneurs starting a business may wonder about the differences.