Start-ups and emerging companies demand focus on the bottom line (and most directly cash flow) for survival and growth. Lacking the freedom that comes with an influx of outside capital, bootstrappers must find ways to responsibly conserve cash. Unfortunately, this frugality is often to the detriment of building key elements of legal infrastructure and can cost the company far more in the long run due to failure to effectively establish or protect the value of the business.

The challenge is to understand, prioritize, and budget for what is essential. Ideally, companies retain trusted counsel who understand their business and provide cogent, personalized guidance. Unfortunately, bootstrappers often fail to obtain the counsel they need, choosing instead to rely on general source materials (borrowed or copied, or “standardized form documents”) which can be applied out of context and thus fail to create the intended results. There are several common elements of legal infrastructure that should be considered. These legal “action items” are often triggered by fairly predictable stages in the company’s lifecycle. (more…)

Many entrepreneurs believe that entity formation is a “one size fits all” situation.  However, the type of entity you choose to form in the beginning can really impact your business.

You may want to go after angel or venture capital.  Perhaps you plan to bootstrap a small company and sell it off in a few years.  Maybe you hope to open a lifestyle business, and manage it yourself until you sell it or pass it on to your children.  You may intend to have one or more partners, or compensate valuable employees with equity.

Each business plan is unique, and “form” documentation simply cannot take into account all the nuances of your plan for the future. (more…)

Focus on Immediate Survival- Save Long Term Planning for Later

Being an entrepreneur is complicated.  Enterprises often face having too few resources but an abundance of expenses.  Even so, when you choose to make trade-offs, don’t be pennywise but pound foolish.  Spend smart money on a few key legal documents to build essential infrastructure for your company.

By spending this money when you start your company, you can be protected from several critical issues that may seriously damage your business later- and it is far more expensive to have these issues fixed after the fact, than it is to properly address them in the beginning. (more…)

A 5 Piece Presentation from the Minds of MWR Legal

Compilations of an extensive interview conducted by Jason Myers

Myth #1- Online Form Documents Make Incorporation Easy

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Drifting snow, chiming bells, and rosy cheeks mark the beginning of our merry holiday season.  And many businesses anticipate the greatest holiday gift of all: the economic outlook has begun to turn rosy as well.

Economists and CEOs alike foresee an increase in sales and a growth in capital during 2010. However, while companies plan to rake in more cash next year they don’t necessarily plan to hire new help. According to Business Roundtable Quarterly, large corporation CEOs anticipate a year of healthy economic expansion but not a resurgence of hiring. (more…)

Health care – and who pays for it – remains an important topic for business owners. Recent legislation will require employers to pay for 65% of separated employees’ health care continuation payment for a prescribed period.  Previously, employers were required to keep separated employees on their health care plans as long as the employee paid up to 110% to cover the payment and attendant administrative cost.   (more…)

Picture yourself having hired your first 5 new employees to help get your new business off the ground. If you’re wondering how to protect the customer base you are working so hard to develop, you are likely concerned about how the use of non-compete agreements can help or hurt you. Your concerns are well founded. (more…)

By Charles Moster & Rick Ressler
In 2007 the Texas legislature passed a new bill which has significantly changed the method for computing tax liabilities – and which may continue to cause changes in taxes for all companies doing business in Texas. Importantly, the change could require your business to pay tax even if you are not profitable. (more…)