Legal Question in Business Law in California

Corporate law

My current employer was sued by our VP and he lost. I currently run the operations. The owner is thinking of closing the company and had asked me and another guy I work with, to open up a new one and continue to do business. My potential partner has IRS problems. He said he--name removed--working on a payment plan with them. Both of us will be 50% shareholders. I am married and have a house and debts. What should I do without getting in a corner? I have about 20 people/workers that could potentially be out of work. I would hate to do that.


Asked on 11/07/08, 2:18 pm

3 Answers from Attorneys

Re: Corporate law

You need to have a discussion with an attorney to go through your options, potential liablities and potential benefits of going into the new business.

Let me know if you want to consult.

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Answered on 11/07/08, 2:28 pm
Daniel Bakondi The Law Office of Daniel Bakondi

Re: Corporate law

Being a business strategist and consultant as well as an attorney, I understand your concerns. There are a number of issues to take into account, to many to even begin to discuss in this forum based on your summary. This type of situation tends to lend itself to a multitude of possible solutions once examined closely. There are many issues that you will want to know about that may affect your future business based on past operations, including the potential for continuing liability to the new entity. Let me know if you want my help.

Regards,

D. Bakondi

IMPORTANT:

No attorney-client nor confidential relationship is created through this communication. You may not rely in any way on this communication, and nothing herein constitutes legal advice nor legal opinion. Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.

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Answered on 11/07/08, 3:22 pm
R.C. Lim The Law Offices of R.C. Lim

Re: Corporate law

There are a number of distinct issues here for you to consider.

1. What should happen to the former business entity?

2. How should you and your partner start the new business entity?

Each of these questions has tax and other liability questions that are not possible with the limited information that you provided. There are certain things that you have already flagged that can easily be addressed, like your partner's IRS problems, but there are likely others that you haven't identified.

I concur with the others. You really could use some legal advice.

If you would like to know what I could do for your business, please call my office to arrange a free initial consultation.

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Answered on 11/07/08, 3:39 pm


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