Yorkville Joint Venture Attorney

A joint venture is a business agreement where two or more persons enter a business relationship to invest in a real estate project or investment. The goal of the joint venture is to make profits and losses on a project. The general idea of a joint venture is to reduce the risks of the parties because the parties pool resources, expertise, and investment resources. One of the major benefits of a joint venture is the ability to finance larger real estate ventures and maximize one’s resources by investing with other members or owners.

In this article, we will discuss the different methods to form a joint venture for real estate companies. The first way to form a joint venture agreement is through a limited liability company or otherwise known as an “LLC.” An LLC is a new popular business entity because it possesses the limited liability feature of the corporation and the flexibility of a partnership. Multi-member LLCs are taxed automatically as partnerships unless the members or otherwise known as “owners” choose a different tax classification. 

For a real estate venture, the LLC is an excellent tool because it is cost-effective, and its' flexibility allows the multi-member owners (or managers) to customize their business agreement in a manner that meets its goals. An LLC Operating Agreement is a written legal agreement between members (owners), which outlines the roles and responsibilities of the members. The goal of the LLC Operating Agreement is to outline the business agreement to provide clarity and reduce the legal risks of conflict. 

Entrepreneurship and business start involve preparation, dedication, and precision. Attorney Sean Robertson is a serial entrepreneur, business advisor, and high-growth coach that assists Sandwich Start-Ups and Small Businesses with their growth, tax planning, and business asset protection goals. Building a successful business is risky and the smartest business owners surround themselves with experienced, entrepreneurial business advisors and lawyers.

Sandwich Business Growth Lawyers: Business Structure and Asset Protection Planning

Our entrepreneurial entrepreneurs are dedicated to our Sandwich business owners, franchise, owners, and entrepreneurs. As serial entrepreneurs and business growth attorneys, we understand the legal risks involved with setting up and operating a business in Sandwich, Illinois. Wisdom is obtained through trials and tribulations, which involve great pain and sacrifice. Smart entrepreneurs understand that their success often requires them to surround themselves with successful and smart entrepreneurial advisors. Wisdom is acquired by mistakes, which produce pain and agony. The pain and agony resulting from mistakes often result in thousands of dollars in lost revenue and opportunities. Eventually, these trials and tribulations produce wisdom and understanding. 

Here, at Gateville Law Firm we understand the business process and legal solutions to assist entrepreneurs and small businesses. Whether you want to start a new business venture or have advanced, and desire to hire a Sandwich Business Formation LLC Attorney. A Sandwich Business LLC Lawyer can set up and advise you of the concerns you should have in your business adventure.

Plano, Illinois Purchase and Sale of Business Attorney

Many considerations need to be made before choosing the best method for the purchase or sale of a business. Both parties want to make sure they have as few headaches as possible. To make this happen, it is crucial to know the make-up of the business and whether the Buyer is looking to purchase the whole business or only particular assets. Based on these answers, the Buyer and Seller can choose the best method to ensure the sale goes through smoothly. Three different methods can be used for the purchase and sale of a business. These three methods are a Merger, an Asset Purchase, and a Stock Purchase. Here, at Gateville Law Firm, we are Plano Il LLC and Business Attorneys assisting entrepreneurs, business owners, and franchise owners with their legal needs.

Merger

A merger is an option that should be selected when both the buyer and the seller are businesses. This is because a Merger takes place when two separate businesses either merge to create an entirely new business or merge with one of the separate businesses surviving and incorporating the other business. A benefit to a Merger is that the business is transferred, so a detailed list of assets is not required to be created for a Merger to work.

Although a list of assets is not required, both businesses must discuss their respective liabilities before the Merger takes place. This is because the surviving entity will then be responsible for the liabilities of the company that merged into it. If these liabilities are severe, there could be more problems later. Another factor to take into consideration is how the shareholders of the company feel about the Merger occurs. This is because majority shareholder approval is required for the Merger to go through. If there is not a majority vote in favor of the Merger, it cannot happen.

What is the First Step in the Sale and Purchase of a Franchise?

The purchase or sale of a franchise is a major investment transaction. The process is complex and requires varying different legal documents. Documents prepared involved in the purchase or sale of a franchise require meticulous preparation.

Letter of Intent

Creation of the letter of intent is the first step in the purchase or sale process involving a franchise. The first step is creating the letter of intent (also known as “LOI”). The letter of intent declares the buyer’s intention to purchase a seller’s franchise. It summarizes several aspects of the deal including the parties involved in the transaction, the deposit amount, and the purchase price, and specifies key terms such as how the deal is going to be financed and determining a buyer due diligence period. 

When it comes to buying or selling a business, the seller and the buyer are both subject to a potentially complicated experience if the right method is not selected. To ensure minimal complications and less of a hassle for all parties involved, the buyer and seller must be aware of the different methods that can be used to buy or sell a business and select the method that best works for the situation at hand. In this instance, there are three different options to consider, an Asset Purchase, a Stock Purchase, and a Merger. Each has its advantages and disadvantages that may help make or break a deal. At Gateville Law Firm, we are Joliet Purchase and Franchise Business Attorneys serving Plainfield, Shorewood, Joliet, Crest Hill, and surrounding areas.

Asset Purchase Agreement in Joliet, Illinois

The first method to consider is an Asset Purchase Agreement. This type of agreement allows more freedom for the buyer side. This is because the Buyer can choose which assets, they want to buy out of the selling business, whether it be a few or the entire business. However, the Buyer must keep in mind that, whatever assets are being purchased out of the selling business will be accompanied by all liabilities associated with that particular asset. If the buyer does not purchase the entirety of the business, then any unsold assets and liabilities must be taken into consideration when the business is in the winding down phase of dissolution.

While the Buyer has the advantage of selecting which assets to purchase, there is a disadvantage in that the purchasing phase will be longer than in other types of business sales because all the assets and liabilities to be purchased must be considered and fully distributed before the sale goes through. Additionally, if the seller is looking to sell the entire business, an Asset Purchase Agreement may not be the best method of sale, since the Buyer is given the option to select which assets they want to purchase and are not required to buy the entire business. Without the entire business being sold, it will not automatically dissolve, and the seller must then wind down and dissolve the company after accounting for the assets and liabilities that are left.

Aurora African-American Commercial Real Estate Attorney

Building wealth is financial empowerment. Building wealth through commercial real estate is important because green is the new strategy for upward mobility. The Martin Luther King Jr. holiday recently passed, and it is a federal holiday celebrating the life and legacy of the late Dr. Martin Luther King Jr. Dr. King had a dream of inclusion for all people regardless of skin color, or ethnicity. Different people celebrate Dr. King’s holiday in diverse ways. One significant shortcoming of the civil rights movement was a lack of focus on financial empowerment.

Nowadays growing up in the right area and attending good schools will have a major factor in your future success and employment opportunities. Individuals become successful everyday despite shortcomings in this country, but those individuals are often in the minority. Regardless of skin color or ethnicity, the value of the dollar remains the same for everyone. For example, $100 will only go so far regardless of your skin color or ethnicity. The new civils rights era must involve economic and financial empowerment tools because wealth and access to wealth is a major tool in providing for your family. Providing for one’s family provides educational and economic opportunities, which changes generations. Traditionally, African American families have lacked access and there has been a significant wealth gap in American. 

Commercial real estate is a powerful wealth-building tool. Commercial real estate provides the following benefits:

Creating a new business start-up is an exciting opportunity and an opportunity filled with significant legal and business risks. Attorney Sean Robertson is a serial entrepreneur, business attorney, and tax-planning attorney that is enthusiastic about helping new businesses succeed and avoids unnecessary mistakes. Building a successful business often requires trial and error. Trial and error can be minimized by surrounding oneself with experienced business advisors and tax professionals. 

Yorkville Start-Up Business Lawyer to Assist New Entrepreneurs and Business Owners

Business and start-up attorneys are important advisors for an entrepreneur and new business owners. Entrepreneurial clients are wise in surrounding themselves with well-qualified and experienced business advisors that can give them wise advice. Wisdom often comes from trial and error. A successful business attorney and client relationship will guide you and your business pioneer a path unchartered. Recessions and tough times are filled with opportunities and new beginnings.

Lawyer in Plainfield and surrounding areas to help rental property owners with setting up limited liability companies

Setting up a limited liability company is a vital asset protection tool for rental property owners in Plainfield and the surrounding areas. An LLC is a powerful tool, which supplies limited liability protection for rental property investors. As a rental property investor, the LLC is the most popular business entity. An LLC has four major elements:

• Limited Liability Protection: A main benefit of an LLC is limited liability protection. Limited liability protection means that the owners (or members) of the LLC are generally at risk if the LLC is sued or incurs debts.

• Ease of Ownership: Creating an LLC is easy to set up and run because LLCs have fewer flexibilities in comparison to corporations. LLCs do not have to host annual meetings or keep formal minutes of minutes. Transferring ownership of an LLC is simple to do because transferring ownership of an LLC by transferring ownership of the LLC to another member (or owner).

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Lawyer in Oswego and Kendal County Helping Real Estate Investors with LLCs

Forming a limited liability company or otherwise known as an “LLC” is a useful strategy to hold real estate investments. An LLC provides limited liability protection for the owners. The owners of an LLC are called “members” of the LLC. This means that if the LLC is sued or incurs debts, the personal assets of the members such as their homes or personal bank accounts generally should not be at risk. Consulting a Yorkville Real Estate LLC Lawyer is a wise decision because there are circumstances where a Real Estate LLC fails to properly protect one’s personal assets.

An LLC is a useful tool for managing one’s liability risks. Titling the real estate investment property into an LLC is a way to reduce one’s liability exposure to creditor concerns and lawsuits. Our economy is facing increasing risks associated with the pending recession and advanced planning is critical to properly protect one’s wealth and financial assets.

In Illinois, there are two types of limited liability companies (LLCs): single-member LLCs and multi-member LLCs. A single-member LLC is an LLC that has only one owner called a “member”. Single-member LLCs are treated as sole proprietorships for tax purposes, meaning that the business income and losses are reported on the member’s personal tax return.

Lawyer in Plano, Illinois Helping Real Estate Investors with LLCs

Gateville Law Firm assists real estate investors and property owners from limited liability companies (“LLCs”) in Plano, Illinois, and nearby areas. Setting up an LLC is an asset protection strategy to limit one’s liability concerning property and lawsuits that occur because of investment properties. A benefit of an LLC is limited liability protection. The owners of an LLC are called “members.” Members are the owners of an LLC.

An LLC is a strong tool to limit one’s liability concerns. In Illinois, there are two types of LLCs formed. The first type of LLC is a member-managed LLC. A member-managed LLC is when the members of the LLC manage the day-to-day operations of the LLC. Any member may bind the LLC into contractual obligations and assist in managing the day-to-day affairs of the LLC. 

Oswego LLC Lawyer: Assisting Real Estate Investors and Commercial Property Owners

Creating a limited liability company or otherwise known as an “LLC” is a way to minimize a real estate owner’s liability concern. One of the multiple benefits of an LLC is limited liability protection for the owners. Limited liability protection insulates the owner's assets from the LLC's creditors and liability concerns. Simply put, this means that if the LLC has debts and a lawsuit is filed against it, the owners of the LLC generally do not have liability concerns. The owners of the LLC enjoy personal limited liability protection. There are circumstances where creating an LLC alone is insufficient limited protection. You should consult an Oswego Real Estate LLC Attorney about the best method to provide the maximum level of liability protection for you and your family.

It is a wise decision to set up an LLC for the purchase of investment real estate. It is also important to re-title the property interests into the LLC's name. Otherwise, the LLC's liability protection will not assist you. Doing It Yourself kits are cost-effective, but they are often faulty because of a person's lack of experience.

With the pending recession, the need for advanced business structure advice is increasing. Generally, a recession especially one impacting the housing market will produce additional foreclosures, liability risks, and lawsuits. These liability risks imperil a family’s wealth and personal assets if advanced business planning was not done in advance of one’s creditor’s concerns.

Kendall County Letter of Intent Attorney

The first step in the purchase and sale of a franchise is the letter of intent. The letter of intent is a letter that outlines the details involved in a potential sale. Second, the letter of intent is a formal declaration of a buyer's seriousness in purchasing a seller's franchise. The letter of intent describes the details of the proposed franchise purchase agreement such as the following:

• The earnest money tendered by the buyer

• The financing terms of the deal (cash or a loan)

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Oswego and Kendall County Franchise Business Attorneys

The purchase or sale of a franchise is a major investment transaction. The process is complex and requires varying different legal documents, which require precision and understanding. The first step in the sale and purchase of a franchise is the letter of intent. 

Letter of Intent Attorney in Kendall County and Nearby Areas

The Letter of intent or “LOI” is necessary for several reasons:

• The Letter of Intent guarantees the franchise will be sold to the agreed buyer even if other potential buyers appear in the future. Thus, the LOI restricts the business deal between the buyer and seller.

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Purchasing or selling a business can be a complex and often overwhelming experience, both for the buyer and seller. There are various aspects that need to be considered, as well as careful consideration and disclosure of all potential liabilities that may surface. When buying or selling a business, there are different ways to go about the sale, but the three most common ways of acquiring a business are through either a stock purchase, an asset purchase, or a merger. It is important to know what each option entails to ensure the correct procedure is chosen to benefit both the buyer and seller in the sale of a business.

Naperville and Yorkville Letter of Intent Attorneys

A letter of intent is an initial letter expressing interest in purchasing a business or franchise. The letter of intent summarizes the buyer’s intention to purchase the seller’s business (or franchise). The letter of intent contains key terms and conditions for the proposed business sale.

Benefits of Letter of Intent

The Letter of intent provides a detailed description of the proposed business deal. The letter of intent provides a specific description of the timeframe proposed for completing the proposed deal. The letter of intent should summarize the following information:

• Prices and Terms such as the business to be acquired

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What is a Limited Liability Company (LLC)?

We’ve all heard the term LLC before but, do you know what it means and what it does? LLC stands for Limited Liability Company, which is a popular structure used to form a business. 

An LLC is essentially a mixture of the best parts of a Partnership business structure (including the tax benefits) and the best parts of a Corporation business structure (including the protection from personal liability). 

A real estate investor asked whether it was acceptable to purchase property through an LLC. The answer is “Yes”. The mortgage will be personally guaranteed by the members of the LLC (or owners of the LLC). The property deed can be titled in the LLC or otherwise known as the Limited Liability Company. Members of an LLC are the owners of the LLC. The owners of a corporation are shareholders. LLC members appoint managers to run the rental property business.

The LLC members pledge their personal assets as collateral to back the lender’s debt. Mortgage companies lend to individual owners of the LLC. The LLC may appear on the title to the rental property. However, the LLC members personally guarantee the mortgage and note. 

Benefits of Setting Up an LLC for Real Estate Investors or Landlords?

There are three major benefits of setting up LLCs for rental property. The three benefits are the following:

The purchase or sale of a vacant lot contrasts with a normal residential real estate transaction in Kendall County and surrounding areas of Oswego, Yorkville, Plano, Sandwich, and Somonauk. The “Vacant Lot Sales Contract” is the standard real estate contract used for the purchase and sale of a vacant lot. 

A vacant lot is a parcel of property or land that has no houses or buildings on it. Many people purchasing a vacant lot have the intention of building a new construction or customized home on the vacant lot. In my experience, most buyers of a vacant lot have the goal of building a new construction property within the next two to three years or earlier. Illegal dumping of waste and litter is a major issue involving vacant lot owners.

SIGN VACANT LOT SALES CONTRACT

The first step in selling a Vacant Lot is the filling out and acceptance of a contract. At Gateville Law Firm, we assist sellers and buyers with the completion of the Vacant Lot Sales Contract. The Vacant Lot Sales Contract involves twenty (20) provisions, which consist of the Vacant Lot Sales Contract.

What are the differences between a Limited Liability Partnership and a Limited Liability Company?

This article will discuss the differences between a Limited Liability Partnership and a Limited Liability Company. 

Limited Liability Partnership aka LLP

In 2021, the median value of a home in the state of Illinois increased almost 50% from the median value in 2012. 10 years ago the median home value in Illinois was $157,000. In 2021 Zillow reported that number to be just under $230,000. Now, in 2022, that number has grown over 11% in just one year to over $267,000. The increasing home value is great news for real estate investors and owners of investment properties. However, the IRS (Internal Revenue Service) can and will go after a seller’s gains through taxes. A 1031 Exchange is one way that investors in real estate can avoid certain taxes by the IRS. 

What is a 1031 Exchange?

A 1031 Exchange is a tool that real estate investors and owners of investment properties can use to protect their gains from the sale of property from being taxed by the IRS. 

26 U.S. Code §1031(a)(1) states: no gain or loss is recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of a “like-kind” which is to be held either for productive use in a trade or business or for investment.