Why Are Written Contracts Important?

Final agreements can be oral, but they can be difficult to prove in a dispute without something more than your own memory to establish the agreed terms. The law also requires that some contracts be in writing, including those for services extending more than a year, employment, and sale of land.

Preparing to Negotiate a Contract

1. Define Objectives and Limits

Spend time thinking about your objectives and limits. A successful negotiation falls between your goal and your bottom line. Evaluate your Plan B, or your best alternative to a negotiated agreement.

2. Study the Other Side

Prepare for the negotiation by understanding the other party’s objectives and limits. The more you know about them, the more options you’ll have during the negotiation. Ensure the person representing the other side has the authority to negotiate.

3. Consider Future Scenarios

Think about what may happen during the life of the agreement. This foresight can help in crafting a contract that is resilient to potential issues.

During the Negotiation

1. Manage Perceptions and Emotions

Get to know the person you’re negotiating with. Understand their incentives and concerns. Provide verbal and physical cues that you want to work together. Clearly state your interests and show flexibility on some points. Be prepared to walk away if necessary.

2. Actively Listen

Pay close attention to what the other side says. Identify and create multiple possible solutions. Look for areas that are unimportant to you but important to the other side and make concessions on those points. Following up with a written summary to confirm points of disagreement and agreement is always a good idea.

Reviewing a Form Contract

1. Negotiability of Form Contracts

Many businesses and vendors use form contracts. Just because it’s a form doesn’t mean it’s not negotiable. Never sign anything you don’t fully understand.

2. Understanding the Contract Scope

Determine the contract’s scope to understand what is and isn’t included. Read and understand common terms such as “hereafter” and “henceforth.”

3. Cape Law’s Contract Review Services

Cape Law offers contract review services. Our attorneys help identify potential points of conflict, provide negotiation advice, and handle contract execution. We ensure you understand the terms and protect your interests.

We invite you to contact us for expert assistance in negotiating and reviewing contracts. Let us help you secure favorable terms and avoid potential pitfalls.

The best state to form an LLC or corporation is where you intend to conduct most of your business or where you have an office or business presence.

Understanding State Requirements for LLCs and Corporations

When you set up an LLC or corporation in a different state than your home state, you will likely need to file an application as a foreign LLC or foreign corporation in any other state where you conduct substantial business. For instance, filing an Application for Authority to Conduct Affairs as a foreign LLC or corporation in Illinois costs $150. This application requires a registered agent with a registered office in Illinois, leading to additional expenses for hiring an Illinois registered agent.

If you form an LLC in Delaware but your business operates primarily in Illinois, you will need to file and pay fees in Illinois as a foreign LLC in addition to those in Delaware. This added expense provides minimal benefits and results in more record-keeping, processing time, and associated fees.

Considerations for Incorporating in Delaware or Nevada

While some believe Delaware or Nevada are ideal for setting up a new LLC or corporation, this isn’t always the case. These states may offer tax or liability advantages for specific types of businesses, especially larger publicly held companies. However, for smaller businesses, the costs and complexities of foreign state filings often outweigh these advantages.

Advanced Research Required

Investigate the tax and liability laws of the state you are considering. These factors can significantly impact your business operations and financial obligations.

Options for Internet-Based Businesses

If your business provides products or services across multiple locations, such as an internet-based business, you have more choices for incorporation. However, even with an Internet business, substantial business activities in a particular state, like Illinois, may still require registration as a foreign corporation or LLC.

Business Licensing Requirements

Unless otherwise exempted by state law, all businesses must obtain a business license from the city, town, or village where they are located. This applies to all business operations, regardless of the state of incorporation.

Cape Law’s Assistance in Incorporation Decisions

Choosing the right state for incorporating your small business or forming your LLC is crucial for long-term success. At Cape Law, we help you navigate these decisions based on your specific business needs and goals. Whether you’re a sole proprietorship, partnership, corporation, or limited liability company, our tailored legal services ensure you make informed choices that benefit your business.

We invite you to reach out and contact us for expert guidance on incorporating your small business or forming your LLC. Let us assist you in making strategic decisions for your business’s future.

Business succession planning ensures you maintain control when transferring business ownership and deciding who makes business decisions if you’re unable to.

Understanding Business Succession Planning

Business succession planning allows you to retain control over your business’s future by deciding who will take over and make decisions in your absence. This process ensures a smooth transition and continuity for your business, safeguarding its legacy and operational stability.

Key Components of Business Succession Planning

1. Personal Goals and Vision

Have you defined your personal goals and vision for the transfer of ownership and management of your business? Setting clear goals and a vision helps align the succession plan with your long-term objectives.

2. Identifying a Successor

Do you have a successor in place? It’s crucial to choose someone with the same passion and commitment to the business. If you’re considering a family successor, consult with family members to ensure they share your dedication.

3. Contingency Planning

Do you have a contingency plan for unforeseen events? A detailed plan is essential to handle unexpected circumstances like death or disability, preventing business disruption.

4. Corporate Structures

Have you considered alternative corporate structures? Different structures might better suit your business’s succession needs, offering more flexibility and benefits.

5. Authorization for Sale

Can you authorize the sale if someone wants to buy your business? A clear authorization process ensures a smooth sale if needed.

How Cape Law Can Assist You

At Cape Law, we understand that a proper business succession plan takes time to develop and implement. We offer tailored assistance for your business needs, whether you operate as a sole proprietorship, partnership, corporation, or limited liability company. Our services are designed to help you navigate the complexities of succession planning with ease and confidence.

About Cape Law

Cape Law is a law firm with offices in New York, New Jersey, California, Florida, Texas, Georgia, and Massachusetts. We provide limited-scope legal services for civil matters, including consultations, case management support, document preparation, and small claims court filing. Our mission is to empower individuals and small businesses to access and navigate the legal system effectively.

We distinguish ourselves by offering transparent, fair, and flat-rate fees, eliminating the need for expensive retainers and complicated billing structures. Our investment in technology ensures a smooth and efficient intake process, making legal services approachable and affordable. Our compassionate attorneys and staff are dedicated to providing patient and thorough assistance, ensuring no question goes unanswered.

We invite you to contact us for expert assistance in developing and implementing your business succession plan. Let us help you secure your business’s future with confidence and clarity.