AdobeStock_631393686-300x200Engaging in the purchase or sale of a business in Oregon involves certain reporting obligations. Ensuring compliance not only alleviates potential stress but also helps prevent legal liabilities resulting from improper transaction handling. Contact the Oregon business attorneys at Structure Law Group, LLC, for expert guidance regarding Oregon mergers and acquisitions. With extensive experience assisting numerous businesses from startup to sale, we streamline the process of buying and selling business assets for greater efficiency.

A Business Must Be in Good Standing Before Transferring Ownership

Businesses must be registered with the Oregon Secretary of State. All annual reports must be current and all fees paid. If you are selling, double-check that you are in good standing to help you close the sale faster. If you purchase a business, then this is part of your due diligence.

AdobeStock_2040656487-1-300x168A Letter of Intent (LOI) should set out the key terms of an acquisition before the parties negotiate the final agreement. Although these letters are typically non-binding, business owners should give careful consideration to terms beyond the purchase price. A poorly drafted LOI can slow negotiations and weaken a business’s position if a legal dispute arises. Call Structure Law Group, LLP, to speak with a Silicon Valley mergers and acquisitions lawyer about drafting a Letter of Intent.

M&A Letters of Intent: Critical Terms Beyond Purchase Price

In addition to identifying the parties, a Letter of Intent should include:

AdobeStock_1519492899-300x128A shareholder agreement provides a basic framework for how a corporation will be run. Although all corporations should have a shareholder agreement, it is especially important for closely held corporations where there is most likely a majority shareholder. If your business is forming a corporation, our Los Angeles corporation lawyers can review any agreement you have drafted yourself, or we can create a full shareholder agreement tailored to your needs.

What to Include in a Shareholder Agreement

A shareholder agreement safeguards the interests of both majority and minority shareholders. It also offers a clear framework for the smooth and efficient management of the corporation, which can boost its value and make it more attractive to potential employees. As a result, both majority and minority shareholders benefit.

AdobeStock_1781449466-300x155In most mergers and acquisitions, buyers choose between acquiring the target company’s assets or purchasing its stock. Each approach carries different implications for liability exposure, contract rights, tax treatment, and post-closing integration. Business owners and executives evaluating an acquisition should understand these distinctions before negotiating transaction terms.

Structure Law Group, LLP Los Angeles M&A attorneys advise buyers, sellers, founders, and investors on mergers and acquisitions throughout Los Angeles and California. The following overview examines key differences between asset purchases and stock purchases, including considerations that may influence risk allocation between the parties.

What Are the Differences Between an Asset Sale and a Stock Sale?

AdobeStock_125631308-300x200Disagreements among shareholders or LLC members can create significant operational challenges, particularly when the owners cannot reach consensus on important business decisions. Prolonged deadlock may delay strategic initiatives, affect management decisions, and create uncertainty for employees, investors, and other stakeholders.

To address these risks, many shareholder agreements and LLC operating agreements include deadlock provisions that establish procedures for resolving disputes and moving the business forward when owners reach an impasse. A corporation lawyer in Silicon Valley examines common deadlock mechanisms and the role they play in corporate governance.

CA Buy-Sell Agreements: Deadlock Clauses and Ownership Exit Options

AdobeStock_256179195-300x200Trade secrets are vulnerable whenever confidential information is shared with employees, contractors, or other personnel as part of day-to-day operations. Without clear internal policies and enforceable agreements, proprietary information may be disclosed, misused, or retained after an individual leaves the company.

Structure Law Group, LLP’s Los Angeles intellectual property lawyers advise businesses on legal strategies to protect trade secrets and other proprietary information, including the drafting employment agreements, confidentiality provisions, and internal policies designed to support enforcement under California law. The following are several practical measures companies should consider when evaluating trade secret protection.

Protecting Trade Secrets: Essential Safeguards

AdobeStock_2026150615-300x171Independent contractors generally retain ownership of the intellectual property they create unless an agreement provides otherwise. Therefore, businesses that engage contractors should address this issue at the outset to avoid uncertainty over ownership of work product developed during the engagement.

A well-drafted independent contractor agreement can establish that intellectual property created in connection with the contractor’s services is assigned to the company. The Silicon Valley intellectual property lawyers at Structure Law Group, LLP regularly advise businesses on drafting and negotiating independent contractor agreements that address intellectual property ownership and related protections. Below are several key provisions companies should consider addressing in these agreements.

Work Made for Hire Clauses

AdobeStock_635006439-300x184Oregon has a deep consumer market, and many businesses are seeking to enter the marketplace. However, foreign corporations and other entities such as limited liability companies need permission from the state before they begin performing transactions. These entities also must fully understand their tax obligations, which typically require registering with the Oregon Department of Revenue. Although Oregon welcomes business entities from around the world and the other 49 states, it’s critical to ensure that you meet all obligations. Below, we examine some of the most significant requirements for doing business in Oregon. Contact an Oregon business lawyer from SLG for assistance with your specific situation.

Applying for Authorization

Under ORS 60.701, a “foreign” corporation (meaning any non-Oregon corporation) may not transact business in Oregon unless authorization has been granted by the Secretary of State. There are similar statues for limited liability companies and other business entities.  In general, most business activity conducted in Oregon requires a formal application for authorization.

AdobeStock_1832413058-300x200An operating agreement serves as the foundational document for a limited liability company (LLC). It functions as the equivalent of a partnership agreement. A well-crafted operating agreement should proactively address potential member disputes by clearly delineating each owner’s rights and responsibilities. It should anticipate common disputes, such as the circumstances surrounding the sale of an ownership share, retirement, or death of a member.

Structure Law Group, LLP, can draft operating agreements for your business. Speak with a Silicon Valley LLC business lawyer in a private consultation. The sooner you draft this critical document, the more protection you receive.

Operating Agreements in CA LLCs: Preventing Member Disputes

AdobeStock_600070387-300x200Many closely held corporations focus on operations, growth, and financing, but corporate formalities remain important for small companies. California law does not exempt smaller corporations from maintaining accurate records, documenting governance decisions, and preserving financial and tax information. When businesses postpone these tasks, they can create avoidable risk in the form of tax issues, internal disputes, audit exposure, or challenges to limited liability protections.

For small corporations in Silicon Valley, establishing a quarterly documentation process helps management keep corporate records current and reduces the burden of reconstructing important information later. Regular recordkeeping also strengthens the company’s ability to respond to lenders, investors, regulators, and potential litigation. The following categories highlight records that corporations should review and maintain each quarter as part of sound corporate governance.

Speak with a Silicon Valley corporations lawyer at Structure Law Group, LLP, for assistance gathering and compiling this information.

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