Entrepreneurs that start up a new business or look to change locations will likely need to negotiate a commercial lease. These negotiations are often intimidating. An entrepreneur for a small business may go up against a landlord that has negotiated dozens of these contracts in the past.
Key provisions to include within a Shareholders Agreement
Shareholders Agreements are essentially contracts between the shareholders of a business. Contracts can include a variety of provisions and these provisions can help reduce the uncertainty of an outcome during a dispute.
Although each Shareholder Agreement should be tailored to each business’ needs, it is generally wise to include these three key provisions:
Importance of due diligence on a commercial real estate purchase
When acquiring real estate, you want to ensure there will be no surprises after purchasing a property. This is especially true when buying commercial real estate because the purchase price is often high, and if you miss something, that could affect your ability to make money from the property.
According to the American Bar Association, there are typically three kinds of commercial real estate investors. There are buyers who want the property for investment purposes, real estate development purposes or to use for their own business operations. The planned use of the real estate affects how you conduct your due diligence.
Fed's quarterly survey finds commercial real estate loans eased
A new survey from the Federal Reserve finds banks have eased lending standards for commercial loans during the first quarter of 2018.
Based on information gathered from an official survey, the agency reports banks have eased important lending terms for commercial real estate loans. These terms include the amount the bank is willing to provide as capital and the rate for the loan.
Business succession in Texas: Three tips
Business owners are wise to put together an exit strategy years before retirement. Three questions to answer to help ease this transition and better ensure both the business and the former owner move on successfully include:
- Do you want to keep the business in the family? If so, it is best to start looking at family members for the position as soon as possible. The transition of a business to a family member can be difficult on the former owner as the transition may benefit the family to the detriment of the business. Begin planning early to address any potential issues.
Venue selection & location concerns for real estate developers
For real estate developers, location selection is the prime consideration. Choosing an ideal location depends on multiple factors, but a poor choice will mean low financial rewards after project completion.
Real estate is very local and the optimal locale depends on the development type. Zoning laws aside, the perfect location for a shopping center would differ from a prime spot for a multi-family unit. In general, a solid location appeals to potential customers and generates profits for the investor.
Will the SCOTUS online sales tax ruling impact small business?
The Supreme Court of the United States (SCOTUS) has taken into consideration the application of a state sales tax for online transactions in South Dakota v. Wayfair.
SCOTUS has answered this question in the past. In 1992, the court addressed a similar issue in Quill Corp. V. North Dakota. In Quill, SCOTUS decided a business must have a substantial physical presence in a state for a state tax to apply. An online transaction alone did not suffice.
Want to remove a shareholder? Here are three options.
A situation may arise when it is best to remove a shareholder that is causing discord within the organization. Shareholder removal is not an easy process. It is wise to read the following before seriously considering this form of action.
Shareholder removal: First things first
SCOTUS to define "compensation" for business purposes
What exactly is compensation? Generally, when we think of compensation in a business setting we think of a paycheck or direct deposit amount. The Supreme Court of the United States (SCOTUS) will soon hear a case that asks whether or not this definition should extend to include stock options.
The case involves the railway industry and the definition of the term "compensation." In the applicable statute, the term is defined as "any form of money remuneration paid to an individual for services rendered as an employee."
Selling a business? Avoid these 3 common mistakes.
Business owners may sell a business for a number of reasons. Some entrepreneurs sell their interests to transition into retirement while others are moving forward to pursue another opportunity.
Whatever the reason for the sale, it is important to take proactive steps to better ensure the transaction goes well. One way to help ease this transition is to avoid these common mistakes:
