When it comes to taking care of yourself, having access to an incredible lawyer is absolutely essential. A few years back, I was accused of a crime that I didn't commit, and it was absolutely devastating. The only way that I got through the ordeal was by finding an excellent general attorney who could represent me. I worked hard to find the right lawyer, and it was amazing to find an expert who truly understood what I was up against. This blog is all about finding the right lawyer to help you through your legal battles so that you can avoid serving time for something you didn't do.
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Don't Let A Third Party Gain Control Over The Fate Of Your Business
Henry Jennings
Maintaining control over a business isn't as easy as it sounds. It's not just the process of keeping the business viable and profitable you have to worry about. You also have to worry about how much power over your business you give to third parties. Third parties can help, but they can also hurt your business as well.
How You Can Give Away Power Over Your Business
There many ways to give away power to third parties. Forming partnerships, or corporations, is one way. Giving away things like contracts, shares, rights, and stakes is another way. These are all forms of giving away control over your business.
However, these things are mostly purposeful and negotiated. Of course, they can happen accidentally if you're not careful with your deals, or if you fail to contact a business lawyer before you make moves. But there are other ways to involuntarily give up some power over your business to others.
Debt -- Every time you take a loan, or don't pay a debt, you're giving away power over your business. It may not seem like it at first, but debt adds up. That debt and its interest compounds and can grow out of control.
Government – You give the government power over your business whenever you don't file yearly paperwork, don't pay taxes, or otherwise miss doing something that's required of you by law.
Contractors – If you contract someone who performs work for you, but you don't pay them, you give that contractor power over your business. There are any number of ways this can happen, and it may not seem like a large issue to begin with. But it's a problem that can lead to unfortunate consequences.
How a Third Party Can Exercise That Power
In all these cases, you have a couple of options. You can pay what you owe, you can petition the court for an extension to file or pay, and you can attempt to negotiate with contractors. If you don't or cannot do these things, then each one of these groups can literally dismantle your business.
If you owe a debt you cannot pay, then the creditor can sue you. It's an expected action, but what you probably don't expect is for that action to lead to you losing your business. If you don't have the assets to pay, then your business becomes forfeit.
You will either need to file for bankruptcy, or the court can dissolve the business, or both. If you do have the assets to pay, you may cripple your business by having to pay out one court-ordered lump sum.
The state your business operates out of can also move to have your business dissolved. This can occur if you fail to pay proper taxes, fail to file proper paperwork, or fail to file renewal documents each year.
Don't Let Others Control the Direction of Your Business
In any of these scenarios, it's easy to see how a third party can effectively take control of your business. Dealing with these problems can dictate how you run your business, as well as the future of your business.
You should speak to a business lawyer the second any of these possibilities come up. Your business lawyer can help you figure what steps you need to take to keep your business operational while dealing with creditors the right way. He or she can also help you figure out how to avoid these kinds of situations going forward.
For more information, contact a law firm like Caldwell Kennedy & Porter.
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