Ask The Business Lawyer

OK, so I'm somewhat biased, but I think lawyers can make for great business partners.  We have a knack for detail-orientation that many entrepreneurs would rather gloss over.  We're careful, read everything, and tend to be risk averse.  A perfect foil for the stereotypically free-spirited business owner.

But sometimes, it's not such a good idea, and I've seen the wreckage when our occasionally bombastic nature can be turned against those who work most closely with us.  That's when there's a conflict of interest. 

Actually, it can happen with non-lawyer business partners, too--such as if you're opening up a competing business together . . . and it's not entirely clear where your partner's loyalties lie.

There are some tasks your lawyer-as-business-partner can probably do very well and efficiently for the company.  Other things, you will want to be sure to get independent counsel.  Read on to find out which is which.

In his post by the same name, attorney Anthony Cerminaro neatly outlines the top 10 steps to buying a business.  They include:

• Assembling a team of professional advisors
• Investigating the business
• Valuing the business
• Negotiating and closing the deal

. . . among other steps.  There are even greater wrinkles when you choose to buy into a business when there are other others already present.  Part of your investigation should include background checks of the other owners, and spending some time with them to ensure that you have a clear definition of roles and the right chemistry to make this steps worthwhile for all.  To make sure that you've thought this through (and don't get the short end of the stick), get your copy of my Entrepreneur's Prenup program, so that your investigation is as thorough as possible.

Q.:  Can a business partner be charged with embezzlement? My husband owns a business along with a partner whom he went to school with. The are equal partners. We have discovered this year he had a $10,000 cashiers check issued to himself from a business loan that acts as a checkings plus account. He also has approximately $40,000 in exessive business expenses that are not legitimate.  What can be done?

Read on to find out . . . !

With Valentine's Day just around the corner, it's no surprise that thoughts turned toward relationships. And frankly, with romantic partnerships, whether we like it or not.

We've all heard the stories (and seen the Jerry Springer episodes) where romantic couples, having married within nanoseconds of each other, grow to realize that their partner:

• Has really annoying habits
• Has grown into a totally different life path (wants to give it all up to enter an ashram)
• Is completely irresponsible with money, or
• Wants to lead a totally different lifestyle from you (you'd like time with the kids; your partner is a workaholic)

Whatever the reason for the disagreement, it's very likely that, with a little digging and probing questions, your incompatibilities could have been uncovered far earlier. Same thing happens with business partners. Entrepreneurs are often so taken with the first flush of start-up fervor that they don't take the time to see whether their potential business partner will be right for them for the long term, or only the short-term.

If your business plans for 2010 including having a business partner, make sure you get your copy of The Entrepreneur's Prenup: How to Choose a Business Partner Who Won't [bleep] You!  There's more that goes into the partner-screening process than you think, and you certainly don't want to look in the mirror this time next year, realizing that you've hitched your wagon to an albatross. 

Click here for a sneak peek of the valuable information you'll get from this book-CD-workbook program!

Q.:  I've invested money into our business and I feel like my partner is trying to cheat me out of my money. I have not said anything because I do not have proof. So I need help to figure out what I can do to guard my back. Our paper work is on the way, but I have not seen the actual paper work yet that proves that I'm 50 percent owner. So what can I do to protect my money and business?

Read on to find out what steps you could take . . . .