Engaging experienced business counsel early helps prevent costly disputes, clarifies ownership and management roles, and establishes structures that support investment and growth. Sound legal planning also streamlines transactions, protects personal assets where appropriate, and creates predictable procedures for succession, sale, or dissolution.
Preventive legal measures like tailored contracts, clear governance rules, and routine compliance checks lower the chance of litigation and financial exposure. This proactive stance preserves management time and company resources while fostering stable relationships with stakeholders.
Hatcher Legal offers focused business law representation that emphasizes clarity, efficiency, and strategic alignment with your commercial goals. We draft precise agreements, anticipate common disputes, and design governance frameworks that support operational stability and investor confidence.
When conflicts arise we pursue negotiation, mediation, or litigation strategies depending on goals and likely outcomes. Early assessment focuses on resolution options that protect business continuity and financial stability while advancing the client’s position efficiently.
Choosing between an LLC and a corporation depends on ownership structure, tax considerations, investor expectations, and plans for growth. An LLC often provides flexible management and pass-through taxation for owners, while a corporation may be preferable for equity financing, stock issuance, and certain institutional investors. Evaluate your capital needs, long-term exit strategy, and tax implications with counsel. A tailored assessment of governance flexibility, investor preferences, and liability protections will guide the optimal structure for your specific business model and growth objectives.
Good shareholder or operating agreements clearly define ownership percentages, voting rights, decision-making authority, capital contribution obligations, profit distribution, and transfer restrictions. Include buy-sell provisions, valuation methods for transfers, and procedures for resolving deadlocks to reduce ambiguity among owners. Incorporate dispute resolution processes such as negotiation and mediation and set clear expectations for roles and compensation. Regular reviews and updates ensure the agreement remains aligned with changing ownership dynamics and business needs.
Preparing for a sale or merger requires organized financial records, clean governance documentation, and resolution of outstanding liabilities or contractual issues. Early alignment on valuation expectations, tax considerations, and necessary approvals helps streamline negotiations and due diligence. Work with counsel to identify and remediate legal risks, assemble a diligence data room, and structure the transaction with appropriate representations, warranties, and indemnities. Clear documentation and pre-closing fixes increase buyer confidence and enhance the likelihood of a smooth closing.
If a partner breaches a contract, begin by reviewing the agreement’s terms and remedies. Preserve documentation of the breach and communications, and consider sending a demand letter that outlines the breach and requested remedy to seek resolution before escalation. If negotiation fails, assess dispute resolution clauses such as mediation or arbitration and evaluate the merits of filing a claim in court. Counsel will advise on the most efficient path to enforce rights, recover damages, or reach a settlement that preserves business value.
Protecting personal assets starts with selecting an appropriate entity that limits personal liability, maintaining corporate formalities, and separating personal and business finances. Proper insurance coverage and well-drafted contracts also reduce the risk that personal assets will be exposed to business claims. Consistent recordkeeping, adherence to governance procedures, and avoiding commingling funds help preserve liability protections. Consult counsel to evaluate asset protection strategies such as entity structuring and risk allocation appropriate for your business and personal circumstances.
Due diligence for a business transaction examines financial statements, contracts, liabilities, employment matters, intellectual property, licenses, and regulatory compliance. The goal is to identify risks that could affect valuation or require contractual protections in the purchase agreement. Sellers should prepare by organizing documents and addressing known issues in advance. Buyers use diligence findings to negotiate price adjustments, warranties, and indemnities or to require remediation prior to closing to ensure the transaction aligns with expectations.
Review governance documents whenever ownership changes, during major transactions, or at least annually for evolving businesses. Regular updates ensure that bylaws, operating agreements, and policies reflect current operations, compliance requirements, and owner intentions. Proactive reviews also allow for timely incorporation of new legal developments or tax changes. Periodic assessments reduce the chance of disputes arising from outdated provisions and keep the company prepared for investment or succession events.
Mediation is a constructive option when parties seek a negotiated resolution without the time and expense of litigation. It can preserve relationships, reduce costs, and lead to creative solutions tailored to business continuity and shareholder interests. Early mediation often succeeds where parties are willing to compromise and where the dispute centers on enforcement or interpretation of agreements. Counsel can prepare a mediation strategy that outlines priorities, acceptable outcomes, and fallback positions to improve prospects for settlement.
Common pitfalls in early-stage formation include unclear ownership percentages, lack of written agreements for founders, failure to document equity grants, and insufficient attention to intellectual property assignments. These oversights can create disputes and complicate future financing. Address these issues early by documenting roles, equity allocations, vesting schedules, and IP ownership. Implement governance procedures and investor-friendly documentation to avoid delays in future fundraising and to provide clarity for all stakeholders.
Transactional work focuses on documentation, negotiation, and preventive planning to avoid disputes, while litigation involves advocating positions in negotiation, arbitration, or court when conflicts cannot be resolved. Both require factual analysis and strategic planning, but the objectives and timelines differ significantly. Our approach treats litigation as a last resort, preparing each case with full awareness of commercial goals and potential business impacts. When litigation is necessary, we pursue efficient strategies that aim to protect value and resolve disputes in a manner consistent with client priorities.
