West Valley City, Utah Business Law Lawyers

What type of business entity should I form?

The best structure depends on your situation — number of owners, liability concerns, tax implications, and growth plans. Common options include sole proprietorship, LLC, S-corp, and C-corp. Each has different liability protection, tax treatment, and administrative requirements. An attorney can help you compare the options for your specific circumstances.

Do I need a lawyer to start a business?

You can file formation documents yourself, but an attorney adds value beyond paperwork. They can advise on entity selection, draft operating agreements or bylaws, set up proper ownership structures, ensure regulatory compliance, and help you avoid common mistakes that become expensive to fix later.

What should be in a partnership agreement?

A good partnership agreement covers ownership percentages, capital contributions, profit/loss distribution, decision-making authority, dispute resolution, what happens when a partner wants to leave, and buyout provisions. Without a written agreement, your state's default partnership laws apply — and they may not reflect what you and your partners actually agreed to.

What happens if my business partner and I disagree?

Your operating agreement or partnership agreement should include a dispute resolution process. Without one, disputes can escalate quickly and may require court intervention. Options include mediation, arbitration, or buyout provisions. In severe cases, a court may dissolve the business. Address dispute resolution in your formation documents before problems arise.

Are non-compete agreements enforceable?

Enforceability varies significantly by state. Some states enforce reasonable non-competes, while others (like California) generally don't enforce them at all. Courts typically look at the duration, geographic scope, and whether the restriction is reasonably necessary to protect legitimate business interests. Recent federal activity may also affect enforcement.

What's the difference between an asset purchase and a stock purchase?

In an asset purchase, the buyer selects specific assets and liabilities to acquire. In a stock purchase, the buyer acquires the entire entity, including all assets and liabilities. Buyers often prefer asset purchases (more control over what they take on), while sellers may prefer stock sales (cleaner exit, potential tax advantages). Each has distinct legal and tax implications.

How do I protect my personal assets from business liabilities?

Forming an LLC or corporation creates a legal separation between your personal and business assets. However, this protection can be lost if you commingle funds, fail to follow corporate formalities, or personally guarantee debts. An attorney can help you maintain the "corporate veil" that protects your personal assets.

When should I have a lawyer review a contract?

Before you sign it. Once you sign a contract, you're generally bound by its terms. An attorney can identify unfavorable clauses, missing protections, ambiguous language, and liability risks. It's particularly important for leases, vendor agreements, employment contracts, and any agreement involving significant money or long-term commitments.