Business Law · Business Transactions
Business transactions require more than a handshake. Federal, state and local laws dictate nearly every aspect of doing business.
Business transactions require more than a handshake.
Federal, state and local laws dictate nearly every aspect of doing business. A lawyer with experience advising business clients can help you conduct transactions within the letter and spirit of the law.
Bring the transaction to counsel before the terms become difficult to change.
Keep reading
Learn what a Rhode Island breach of contract claim requires, how to review remedies, preserve evidence, negotiate, and decide when to bring counsel in.
Read guide ↗Compare corporations and partnerships in Rhode Island by formation, control, liability, taxation, ownership transfers, and financing.
Read guide ↗Learn what to prepare before selling a business, how diligence and letters of intent work, and what buyers examine in the final agreement.
Read guide ↗Clear answers
Common structures include a sole proprietorship, partnership, limited liability company, and corporation. The choice can affect ownership, management, liability, recordkeeping, and how the business operates, so it should be evaluated against the people involved, the planned activity, and the business’s goals.
An entity can create a legal separation between the business and its owners for many business obligations. That protection depends on the structure, the facts, and maintaining the entity’s separate identity; forming an entity does not make every personal exposure disappear.
An operating agreement explains how an LLC is owned, managed, funded, and changed, including what happens if an owner leaves or the members disagree. A bank may ask for it to confirm who can act for the company and whether the proposed borrowing is authorized.
A single-member LLC may have fewer internal decisions than a multi-member company, but it still benefits from an operating agreement, separate finances, accurate records, authorized contracts, and compliance with required filings. Informality should not blur the separation between the company and its owner.
A personal guarantee can make an individual responsible for a business obligation if the business does not perform, depending on the language and applicable law. The scope, triggers, defenses, and duration should be understood before signing; an entity does not automatically protect a person who separately guarantees a debt.
Start with a conversation
A clear first step can make the rest of the process easier to understand.
