Tag Archives: business ownership

Divorce And Business Ownership: Protecting Your Share

When going through a divorce, the division of assets can be a complex and emotionally charged process. If you are a business owner, protecting your share of the business becomes a crucial aspect. In this article, we will explore the intersection of divorce and business ownership, providing guidance and reassurance for those facing this situation. We will address common legal concerns, offer advice on protecting your business interests, and highlight the importance of seeking proper assistance in navigating through this challenging time. By the end, you will have a clearer understanding of how to safeguard your share and make informed decisions to protect your future.

Understanding the Impact of Divorce on Business Ownership

Divorce can have a significant impact on many aspects of your life, including your business. Whether you are a sole proprietor or a co-owner of a business, it’s crucial to understand the implications of divorce on your business ownership. This article aims to provide you with a comprehensive understanding of the various factors involved in handling business ownership during a divorce.

Determining the Value of the Business

One of the critical steps in dividing assets during a divorce is determining the value of your business. Business valuation is a complex process that involves assessing various factors such as assets, liabilities, income, market conditions, and future prospects. Hiring a professional business valuation expert can help ensure an accurate assessment of your business’s value, providing a solid foundation for negotiations and settlement discussions.

Division of Assets: Marital vs. Non-marital Property

During a divorce, assets are typically divided into two categories: marital property and non-marital property. Marital property refers to assets acquired during the marriage, while non-marital property includes assets obtained before the marriage or through inheritance or gift. If you started or acquired your business during the marriage, it may be considered marital property subject to division. Understanding the distinction between marital and non-marital property is crucial to protect your business ownership and ensure a fair distribution of assets.

Protecting Your Business from Alimony Claims

Alimony, also known as spousal support, is a financial arrangement that one spouse may be required to pay to the other during and after a divorce. If you are a business owner, it’s essential to take steps to protect your business from potential alimony claims. One strategy is to establish a clear separation between your personal and business finances. By maintaining separate bank accounts and meticulously documenting the business’s expenses, you can demonstrate that the business’s income is not available for alimony calculations.

Understanding Business Valuations in Divorce Proceedings

Business valuations play a crucial role in divorce proceedings involving business ownership. It’s important to understand the different methodologies used to assess the value of a business. Some common approaches include the income approach, market approach, and asset-based approach. Working with a qualified business valuation expert who can explain the valuation process and guide you through the complexities can help ensure a fair and accurate assessment of your business’s worth.

Steps to Protect Your Business During Divorce

Navigating the complexities of a divorce involving business ownership requires careful planning and proactive measures. Here are some essential steps to protect your business during divorce:

Keeping Personal and Business Finances Separate

One of the most critical steps you can take to protect your business is to keep your personal and business finances completely separate. This includes maintaining separate bank accounts, using separate credit cards, and avoiding mixing personal and business expenses. By doing so, you can clearly demonstrate that the business is a distinct entity and maintain its integrity during divorce proceedings.

Creating a Prenuptial or Postnuptial Agreement

To safeguard your business in the event of a divorce, consider creating a prenuptial or postnuptial agreement. These legal documents outline how your business and other assets would be divided in the event of a divorce. By defining the terms before marriage or during the marriage, you can provide clarity and protection for your business.

Maintaining Accurate and Organized Business Records

Keeping accurate and organized business records is essential not just for your business’s day-to-day operations but also for divorces involving business ownership. Thorough and detailed records can help substantiate the value of your business, support your claims during negotiations, and provide evidence for equitable distribution of assets. Make sure to keep track of financial statements, tax returns, contracts, invoices, and any other relevant documents.

Evaluating the Need for a Buy-Sell Agreement

If you co-own your business with others, it’s crucial to have a buy-sell agreement in place. A buy-sell agreement defines what will happen to a co-owner’s share in the event of divorce, death, or other triggering events. By proactively addressing such situations, you can avoid potential complications and disputes that may arise during a divorce.

The Role of Experts in Divorce and Business Valuations

During a divorce involving business ownership, it’s often necessary to work with experts who specialize in business valuations and financial analysis. These professionals can offer valuable insights and guidance. Here are some experts commonly involved in divorce proceedings:

Hiring a Business Valuation Expert

A business valuation expert is a crucial asset during a divorce, as they can provide an objective and unbiased assessment of your business’s value. These experts have the knowledge, experience, and credentials to conduct in-depth analyses and provide accurate valuations based on industry standards and best practices.

Working with Forensic Accountants

Forensic accountants play a vital role in divorce cases where financial complexities are involved. They specialize in investigating financial records, uncovering hidden assets, and analyzing cash flows. If you suspect your spouse may be hiding assets or undervaluing the business, a forensic accountant can assist you in uncovering the truth.

Obtaining an Independent Appraisal

In some cases, it may be beneficial to obtain an independent appraisal of your business’s value. This can provide an additional layer of credibility and ensure that all parties involved have confidence in the valuation. An independent appraisal may be especially useful if there is a dispute or if the business’s value is a contentious issue during the divorce proceedings.

Considerations for Business Owners in Divorce Settlements

When negotiating a divorce settlement involving business ownership, there are several key considerations to keep in mind:

Negotiating a Fair Settlement

Negotiating a fair settlement requires a careful balance between protecting your business and reaching a mutually acceptable agreement. It’s essential to assess your business’s current and future value, consider tax implications, and explore various scenarios before entering into negotiations. Working closely with your attorney and other professionals can help ensure that your interests are represented effectively.

Exploring Alternative Dispute Resolution Methods

Divorce cases involving business ownership can be complex and emotionally draining. In some situations, exploring alternative dispute resolution methods, such as mediation or collaborative divorce, can offer a more efficient and amicable resolution. These methods focus on finding mutually agreeable solutions rather than resorting to adversarial litigation.

Protecting Intellectual Property Rights

If your business involves intellectual property rights, such as patents, trademarks, or copyrights, it’s essential to protect those rights during the divorce proceedings. Intellectual property can be a valuable asset, and its ownership and value need to be carefully considered and addressed in the settlement.

Tax Implications of Divorce on Business Ownership

Divorce can have significant tax implications for both you and your business. It’s essential to understand these consequences to make informed decisions and plan accordingly:

Understanding Tax Consequences of Property Division

When dividing assets during a divorce, it’s crucial to consider the tax implications. Transfers of property between spouses incident to divorce are generally tax-free. However, when it comes to businesses, certain transfers may trigger tax liabilities, such as capital gains taxes. Consulting with a tax professional can help ensure that you fully understand the tax consequences of property division.

Utilizing Tax Planning Strategies

Tax planning can play a crucial role in minimizing the impact of divorce on your business. Strategies such as structuring settlement payments as tax-deductible alimony or utilizing installment sales provisions can help mitigate tax liabilities. It’s crucial to work closely with a tax professional who has experience in divorce-related tax planning.

Considering the Impact of Alimony on Business Expenses

If you are required to pay alimony as part of your divorce settlement, it’s important to consider the impact on your business expenses. Alimony payments are generally tax-deductible for the paying spouse and taxable income for the receiving spouse. Understanding how alimony payments may affect your business’s profitability and cash flow is crucial for long-term financial planning.

Safeguarding Your Business Post-Divorce

Once the divorce is finalized, it’s important to take steps to safeguard your business’s future success:

Updating Legal Documents and Ownership Structure

After a divorce, it’s crucial to update your legal documents to reflect changes in your marital status and ownership structure. This includes revisiting your operating agreement, shareholder agreements, or partnership agreements and making any necessary amendments. It’s also important to update any licenses, permits, or registrations to reflect the new ownership structure.

Developing a Succession Plan

A divorce may necessitate the need for a succession plan, especially if you are the sole owner of the business. It’s important to identify and groom potential successors or make arrangements for the sale or transfer of your business in the event of your absence or incapacity. Developing a comprehensive succession plan helps protect the business from uncertainties and ensures its continuity.

Ensuring Non-Compete and Non-Disclosure Agreements

To protect your business’s competitive advantage and intellectual property, it’s critical to ensure that non-compete and non-disclosure agreements are in place. These agreements restrict employees, partners, or co-owners from divulging sensitive information or competing in the same industry for a defined period. By safeguarding your business’s proprietary information, you can maintain its value and prevent potential damage or loss.

Seeking Professional Legal Guidance in Divorce and Business Matters

Divorce cases involving business ownership can be legally complex and emotionally challenging. Seeking professional legal guidance is crucial to protect your interests and navigate the intricate legal landscape. Here are some reasons why consulting with a divorce attorney and business law specialists is essential:

Importance of Consulting a Divorce Attorney

A divorce attorney can provide invaluable guidance throughout the divorce process. They can help you understand your rights and obligations, advocate for your interests, negotiate a fair settlement, and ensure your business is adequately protected. An experienced divorce attorney will have the knowledge and expertise to address the unique challenges posed by business ownership in divorce.

Working with Business Law Specialists

In addition to a divorce attorney, working with business law specialists can provide specialized advice and support specific to your business. Business law specialists can assist with drafting agreements, handling business transactions, and providing guidance on legal and regulatory compliance. By working closely with professionals who understand the intricacies of both divorce and business law, you can navigate the complexities with confidence.

FAQs about Divorce and Business Ownership

Here are some frequently asked questions about divorce and business ownership, along with brief answers to provide additional clarification:

What factors determine the division of a business in a divorce?

The division of a business in a divorce is determined by various factors, including whether the business is considered marital or non-marital property, its value, the contributions of each spouse to the business, and the specific laws of the jurisdiction in which the divorce is filed.

Can a prenuptial agreement protect my business in case of divorce?

Yes, a properly drafted prenuptial agreement can protect your business in the event of divorce. A prenuptial agreement allows you to outline how your business and other assets would be divided, providing clarity and protection for your business ownership.

How can I avoid disruption to my business during a divorce settlement?

To minimize disruptions to your business during a divorce settlement, it’s important to maintain clear separation between personal and business finances, keep accurate and organized business records, consider alternative dispute resolution methods, and work closely with professionals specializing in divorce and business ownership matters. Seeking legal guidance early on can help you navigate the process smoothly while minimizing business disruptions.

In conclusion, divorce can have significant implications for business owners. By understanding the value of your business, division of assets, protecting your business from alimony claims, and comprehending the role of experts and tax implications, you can safeguard your business during and after a divorce. Taking proactive steps, such as creating legal agreements, maintaining accurate records, and seeking professional guidance, can help protect your business’s future and ensure a fair and equitable settlement. Remember, consulting with a divorce attorney and business law specialists is crucial to effectively navigate the intricacies of divorce and business ownership. Take the necessary steps to protect your share and seek professional assistance to minimize potential disruptions and safeguard the success of your business.

Does Starting My Own Business Mean I Get A Corporation Automatically?

Legal Topics

“Start Your Own Business – Get the Corporation You Need!”

Introduction

Starting your own business can be an exciting and rewarding experience. However, it is important to understand the legal implications of owning a business. One of the most important questions to consider is whether or not starting your own business automatically means you get a corporation. In this article, we will discuss the differences between a corporation and other business structures, the advantages and disadvantages of forming a corporation, and the steps you need to take to form a corporation. We will also discuss the tax implications of forming a corporation and the legal requirements for maintaining a corporation. By the end of this article, you should have a better understanding of whether or not starting your own business automatically means you get a corporation.

What Are the Pros and Cons of Starting a Corporation vs. Other Business Structures?

Starting a corporation is a popular choice for many business owners, but it is important to understand the pros and cons of this business structure before making a decision.

Pros of Starting a Corporation

1. Limited Liability: One of the main advantages of forming a corporation is that it provides limited liability protection for its owners. This means that the owners are not personally liable for the debts and obligations of the corporation.

2. Tax Benefits: Corporations are taxed separately from their owners, which can provide tax benefits. Corporations can also take advantage of certain tax deductions that are not available to other business structures.

3. Access to Capital: Corporations can raise capital more easily than other business structures, as they can issue stock and attract investors.

Cons of Starting a Corporation

1. Cost: Forming a corporation can be expensive, as there are filing fees and other costs associated with the process.

2. Complexity: Corporations are more complex than other business structures, and require more paperwork and compliance with regulations.

3. Double Taxation: Corporations are subject to double taxation, meaning that the corporation is taxed on its profits and then the shareholders are taxed on the dividends they receive.

In conclusion, starting a corporation can be a great choice for many business owners, but it is important to understand the pros and cons before making a decision. Corporations provide limited liability protection, tax benefits, and access to capital, but they can also be expensive and complex to set up and maintain.

What Are the Tax Implications of Starting a Corporation?

Starting a corporation can be a great way to protect your personal assets and gain certain tax benefits. However, it is important to understand the tax implications of forming a corporation before taking the plunge.

When you form a corporation, you must pay taxes on the profits of the business. This is done through corporate income tax, which is paid at the federal and state levels. Depending on the type of corporation you form, you may also be subject to additional taxes, such as payroll taxes, sales taxes, and franchise taxes.

In addition to corporate income tax, you may also be required to pay taxes on any dividends you receive from the corporation. Dividends are payments made to shareholders from the profits of the corporation. These dividends are taxed as ordinary income, so you will need to report them on your personal tax return.

You may also be eligible for certain tax deductions when you form a corporation. These deductions can include expenses related to the formation of the corporation, such as legal and accounting fees. You may also be able to deduct certain business expenses, such as travel and entertainment costs.

Finally, you should be aware of the potential for double taxation when you form a corporation. This occurs when the corporation pays taxes on its profits and then the shareholders pay taxes on the dividends they receive. To avoid this, you may want to consider forming an S corporation, which allows the profits of the business to pass through to the shareholders without being subject to double taxation.

Overall, starting a corporation can be a great way to protect your personal assets and gain certain tax benefits. However, it is important to understand the tax implications of forming a corporation before taking the plunge. By doing your research and consulting with a tax professional, you can ensure that you are taking advantage of all the tax benefits available to you.

How Can I Protect Myself and My Business When Starting a Corporation?

Starting a corporation is a major step for any business, and it is important to take the necessary steps to protect yourself and your business. Here are some tips to help you get started:

1. Understand the legal requirements. Before you start a corporation, make sure you understand the legal requirements in your state. This includes filing the necessary paperwork, obtaining the necessary licenses and permits, and understanding the tax implications.

2. Choose the right business structure. Selecting the right business structure is essential for protecting your personal assets. Consider the advantages and disadvantages of each structure and choose the one that best suits your needs.

3. Draft a shareholders’ agreement. A shareholders’ agreement is a legal document that outlines the rights and responsibilities of the shareholders. It should include provisions for the transfer of shares, the management of the company, and the distribution of profits.

4. Obtain the necessary insurance. Make sure you have the right insurance coverage for your business. This includes liability insurance, property insurance, and workers’ compensation insurance.

5. Establish a corporate bank account. A corporate bank account will help you keep your business finances separate from your personal finances. This will help protect your personal assets in the event of a lawsuit or other legal action.

By taking these steps, you can protect yourself and your business when starting a corporation. Make sure you understand the legal requirements, choose the right business structure, draft a shareholders’ agreement, obtain the necessary insurance, and establish a corporate bank account. Doing so will help ensure that your business is properly protected.

What Are the Legal Requirements for Starting a Corporation?

Starting a corporation requires a number of legal steps to ensure that the business is properly established and compliant with all applicable laws. The exact requirements vary by jurisdiction, but generally include the following:

1. Choose a business name: The name of the corporation must be unique and not already in use by another business. It must also comply with any naming regulations in the jurisdiction.

2. File articles of incorporation: This document is filed with the state or other jurisdiction in which the corporation will be based. It outlines the purpose of the corporation, the names of the directors, and other important information.

3. Obtain a federal tax ID number: This number is used to identify the corporation for tax purposes.

4. Create corporate bylaws: These are the rules and regulations that govern the internal operations of the corporation.

5. Issue stock certificates: These documents represent ownership in the corporation and must be issued to all shareholders.

6. Obtain necessary licenses and permits: Depending on the type of business, the corporation may need to obtain licenses and permits from local, state, and federal authorities.

7. Comply with other legal requirements: Depending on the jurisdiction, there may be other legal requirements that must be met in order to properly establish the corporation.

By following these steps, entrepreneurs can ensure that their corporation is properly established and compliant with all applicable laws.

What Are the Benefits of Starting My Own Business as a Corporation?

Starting a business as a corporation offers a number of advantages over other business structures. Incorporating a business provides the owners with limited liability protection, which means that the owners are not personally liable for the debts and obligations of the business. This means that creditors cannot come after the owners’ personal assets if the business fails.

Incorporating a business also provides tax advantages. Corporations are taxed separately from their owners, which means that the owners can take advantage of lower tax rates. Additionally, corporations can deduct certain expenses, such as health insurance premiums, from their taxable income.

Incorporating a business also provides the owners with more credibility. Potential customers and investors are more likely to trust a business that is incorporated, as it shows that the business is serious about its operations.

Finally, incorporating a business can make it easier to raise capital. Banks and other lenders are more likely to provide financing to a corporation than to a sole proprietorship or partnership. Additionally, corporations can issue stock to raise capital, which can be attractive to potential investors.

In summary, starting a business as a corporation offers a number of advantages, including limited liability protection, tax advantages, increased credibility, and easier access to capital.

Q&A

1. Does starting my own business mean I get a corporation automatically?

No, starting your own business does not automatically mean you get a corporation. A corporation is a legal entity that is separate from its owners and is created under state law. To form a corporation, you must file paperwork with the state and pay a fee.

2. What are the benefits of forming a corporation?

Forming a corporation can provide several benefits, including limited liability protection, tax advantages, and increased credibility. Limited liability protection means that the owners of the corporation are not personally liable for the debts and obligations of the business. Tax advantages include the ability to deduct business expenses and the potential to pay lower taxes on corporate profits. Increased credibility can help attract investors and customers.

3. What are the drawbacks of forming a corporation?

Forming a corporation can be more expensive and time-consuming than other business structures. Corporations also require more paperwork and record-keeping than other business structures. Additionally, corporations are subject to more regulations and taxes than other business structures.

4. What other business structures are available?

Other business structures include sole proprietorships, partnerships, limited liability companies (LLCs), and nonprofit organizations. Each structure has its own advantages and disadvantages, so it is important to research and understand the differences before deciding which structure is best for your business.

5. What should I consider before starting a business?

Before starting a business, you should consider the type of business you want to start, the legal structure you want to use, the amount of capital you need to start the business, and the amount of time and effort you are willing to commit to the business. Additionally, you should research the local laws and regulations that may affect your business.

Areas We Serve

We serve individuals and businesses in the following locations:

Salt Lake City Utah
West Valley City Utah
Provo Utah
West Jordan Utah
Orem Utah
Sandy Utah
Ogden Utah
St. George Utah
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South Jordan Utah
Lehi Utah
Millcreek Utah
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Business Law Consultation

When you need help with Business Law in Utah call Jeremy D. Eveland, MBA, JD (801) 613-1472 for a consultation.

Jeremy Eveland
17 North State Street
Lindon UT 84042
(801) 613-1472

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Does Starting My Own Business Mean I Get A Corporation Automatically?

Business Succession Lawyer Murray Utah

Business Succession Law in Utah is an important part of the legal system and the state is home to a number of business lawyers and law firms that specialize in this area. Business Succession Law in Utah includes legal services such as estate planning and business succession lawyers who help business owners plan for the future of their businesses. Business succession law helps business owners plan for the transfer of ownership and/or control of their business in the event of death, disability, retirement, or other unexpected events. This law also helps to protect the rights of the business owners and their families in the event of such events.

Business succession plans are important for all businesses, big and small. Business Succession Law helps business owners create a succession plan that meets their needs and their business objectives. The succession plan should include a clear definition of the succession process, the responsibilities of each party involved, and the transfer of ownership and/or control. Additionally, the plan should also include provisions for Alternative Dispute Resolution, business litigation, and ethical standards.

Succession Planning

Business succession law in Utah is based on the Utah Code and the state’s business law. Business lawyers and law firms that specialize in this area assist business owners in understanding the legal requirements of business succession law in Utah and helping them to draft a comprehensive succession plan. The lawyers and law firms also provide legal advice on business partnerships, LLC business lawyers, professional corporation business, and other business entities.

Business succession law in Murray Utah is important for business owners who are looking to ensure their businesses will continue to operate and thrive in the event of an unexpected event. This law helps business owners plan for the future of their businesses by providing them with the necessary legal tools to do so. Furthermore, business succession law in Utah provides business owners with the necessary legal advice to make sure their succession plans are in accordance with the law and that their rights and interests are protected.

Business succession law in Murray Utah is an integral part of the legal system and the state is home to a number of business lawyers and law firms that specialize in this area. These lawyers and law firms offer valuable legal services such as estate planning, business succession lawyers, and business litigation. Additionally, business succession law in Utah provides business owners with the necessary legal advice to make sure their succession plans are in accordance with the law and that their rights and interests are protected. Business succession law in Utah is an important part of the legal system and provides business owners with the necessary legal tools to ensure their businesses will continue to operate and thrive in the event of an unexpected event.

Business Law Firm

A business law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise clients (individuals or corporations) about their legal rights and responsibilities, and to represent this clients in civil or criminal cases, business transactions, and other matters in which legal advice and other assistance are sought.

Business Law Firm Arrangements

Law firms are organized in a variety of ways and different structures, depending on the jurisdiction in which the firm practices. Some common arrangements include:

Sole proprietorship, this is one in which the attorney is the law firm and is responsible for all profit, loss and liability;

General partnership, one in which all the attorneys who are members of the firm share ownership, profits and liabilities;

Professional corporations, this is a structure which issue stock to the attorneys in a fashion similar to that of a business corporation;

Limited liability company, another structure in which the attorney-owners are called “members” but are not directly liable to third party creditors of the law firm (prohibited as against public policy in many jurisdictions but allowed in others in the form of a “Professional Limited Liability Company” or “PLLC”);

Professional association, which operates similarly to a professional corporation or a limited liability company;

Limited liability partnership (LLP), in which the attorney-owners are partners with one another, but no partner is liable to any creditor of the law firm nor is any partner liable for any negligence on the part of any other partner. The LLP is taxed as a partnership while enjoying the liability protection of a corporation.

Restrictions on Ownership Interests in Business Law Firm

Mostly, there is a rule that only lawyers may have an ownership interest in, or be managers of, a law firm. Although some states have revised this or modified it in some way, for the most part, this is true in the United States. Thus, law firms cannot quickly raise capital through initial public offerings on the stock market, like most corporations. They must either raise capital through additional capital contributions from existing or additional equity partners, or must take on debt, usually in the form of a line of credit secured by their accounts receivable.

In Utah, this complete bar to non lawyer ownership has been codified by the American Bar Association as paragraph (d) of Rule 5.4 of the Model Rules of Professional Conduct and has been adopted in one form or another in most jurisdiction. Ownership only by those partners who actively assist the firm’s lawyers in providing legal services, and does not allow for the sale of ownership shares to mere passive non lawyer investors. Law firms have been able to take on a limited number of non-lawyer partners and lawyers have been allowed to enter into a wide variety of business relationships with non-lawyers and non-lawyer owned businesses. This has allowed, for example, grocery stores, banks and community organizations to hire lawyers to provide in-store and online basic legal services to customers which is really necessary and good for business owners (either big or small).

This rule Is very controversial. It is justified by many in the legal profession, notably, most rejected a proposal to change the rule in its Ethics 20/20 reforms, as necessary to prevent conflicts of interest. In the adversarial system of justice, a lawyer has a duty to be a zealous and loyal advocate on behalf of the client, and also has a duty to not bill the client excessively. Also, as an officer of the court, a lawyer has a duty to be honest and to not file frivolous cases or raise frivolous defenses. Many in the legal profession believe that a lawyer working as a shareholder-employee of a publicly traded law firm might be tempted to evaluate decisions in terms of their effect on the stock price and the shareholders, which would directly conflict with the lawyer’s duties to the client and to the courts. Critics of the rule, however, believe that it is an inappropriate way of protecting clients’ interests and that it severely limits the potential for the innovation of less costly and higher quality legal services that could benefit both ordinary consumers and businesses.

Business law firms can vary widely in size. The smallest law firms are lawyers practicing alone, who form the vast majority of lawyers in nearly all areas. Smaller firms tend to focus on particular specialties of the law (e.g. patent law, labor law, tax law, criminal defense, personal injury); larger firms may be composed of several specialized practice groups, allowing the firm to diversify its client base and market, and to offer a variety of services to their clients. Large law firms usually have separate litigation and transactional departments. The transactional department advises clients and handles transactional legal work in the firm, such as drafting contracts, handling necessary legal applications and filings, and evaluating and ensuring compliance with relevant law; while the litigation department represents clients in court and handles necessary matters (such as discovery and motions filed with the court) throughout the process of litigation.

Multinational Law Firms

Law firms operating in multiple countries often have complex structures involving multiple partnerships, which may restrict partnerships between local and foreign lawyers. Some multiple national or regional partnerships form an association in which they share branding, administrative functions and various operating costs, but maintain separate revenue pools and often separate partner compensation structures while other multinational law firms operate as single worldwide partnerships, in which partners also participate in local operating entities in various countries as required by local regulations.

Financial indicators in Business Law Firm

Three financial statistics are typically used to measure and rank law firms’ performance for businesses:

Profits per equity partner (PPEP or PPP): Net operating income divided by number of equity partners. High PPP is often correlated with prestige of a firm and its attractiveness to potential equity partners. However, the indicator is prone to manipulation by re-classifying less profitable partners as non-equity partners.

Revenue per lawyer (RPL): Gross revenue divided by number of lawyers. This statistic shows the revenue-generating ability of the firm’s lawyers in general, but does not factor in the firm’s expenses such as associate compensation and office overhead.

Average compensation of partners (ACP): Total amount paid to equity and nonequity partners (i.e., net operating income plus nonequity partner compensation) divided by the total number of equity and nonequity partners. This results in a more inclusive statistic than PPP, but remains prone to manipulation by changing expense policies and re-classifying less profitable partners as associates.

What Is A Full-Service Law Firm?

A full-service law firm provides legal assistance to a wide variety of clients and is equipped to handle all aspects of a case. For instance, a full-service personal injury firm can handle consultations, settlement talks and litigation proceedings in court. A full-service contract law firm can handle drafting reviews, negotiations and renegotiations. Specialized law firms may cover a specific service or niche. With this, it is necessary and good to have an involvement with a law firm for your business.

Law Firms by Practice Area

There are numerous types of lawyers, broken down by practice area. Choosing one of the many law aspects available can be a way for students or Business owners to frame their careers and establish themselves within a particular area of interest, such as criminal law, tax law, sports law or cybersecurity and business area of interest.

Law Firms by Legal Service

Law firms may limit the services they offer clients. Most law firms offer consultations for legal information and document review. Some firms specialize in helping clients prepare for litigation, and others solely represent clients in out-of-court administrative hearings like arbitration, mediation or contractual signings. Often, smaller firms will choose one or the other while medium and large firms may have two departments pursuing both transactional and litigation cases.

Mergers and Acquisitions Between Law Firms

Mergers, acquisitions, division and reorganizations occur between law firms as in other businesses. The specific books of business and specialization of attorneys as well as the professional ethical structures surrounding conflict of interest can lead to firms splitting up to pursue different clients or practices, or merging or recruiting experienced attorneys to acquire new clients or practice areas. Results often vary between firms experiencing such transitions. Firms that gain new practice areas or departments through recruiting or mergers that are more complex and demanding (and typically more profitable) may see the focus, organization and resources of the firm shift dramatically towards those new departments. Conversely, firms may be merged among experienced attorneys as partners for purposes of shared financing and resources, while the different departments and practice areas within the new firm retain a significant degree of autonomy.

Law firm mergers tend to be assortative, in that only law firms operating in similar legal systems are likely to merge. Though mergers are more common among better economies, slowing down a bit during recessions, big firms sometimes use mergers as a strategy to boost revenue during a recession. Nevertheless, data shows less mergers over time.

Business Succession Lawyer Murray Utah Consultation

When you need legal help with a business succession in Murray Utah, call Jeremy D. Eveland, MBA, JD (801) 613-1472 for a consultation.

Jeremy Eveland
17 North State Street
Lindon UT 84042
(801) 613-1472

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Murray, Utah

From Wikipedia, the free encyclopedia

Murray, Utah
City
Murray City Hall
Seal
Location in Salt Lake County and the state of Utah.
Coordinates: 40°39′9″N 111°53′36″WCoordinates: 40°39′9″N 111°53′36″W
Country	United States
State	Utah
County	Salt Lake
Settled	1848
Incorporated	January 3, 1903
Named for	Eli Houston Murray^[1]
Government
• Type	Mayor-Council
• Mayor	Brett Hales^[2]
Area ^[3]
• Total	12.32 sq mi (31.92 km²)
• Land	12.32 sq mi (31.91 km²)
• Water	0.00 sq mi (0.01 km²)
Elevation	4,301 ft (1,311 m)
Population (2020)
• Total	50,637
• Density	4,110.15/sq mi (1,532.75/km²)
Time zone	UTC−7 (MST)
• Summer (DST)	UTC−6 (MDT)
ZIP codes	84107, 84117, 84121, 84123
Area code(s)	385, 801
FIPS code	49-53230^[4]
GNIS feature ID	1443742^[5]
Demonym	Murrayite
Website	www.murray.utah.gov

Murray (/ˈmʌri/) is a city situated on the Wasatch Front in the core of Salt Lake Valley in the U.S. state of Utah. Named for territorial governor Eli Murray, it is the state’s fourteenth largest city. According to the 2020 census, Murray had a population of 50,637.^[6] Murray shares borders with Taylorsville, Holladay, South Salt Lake and West Jordan, Utah. Once teeming with heavy industry, Murray’s industrial sector now has little trace and has been replaced by major mercantile sectors. Known for its central location in Salt Lake County, Murray has been called the Hub of Salt Lake County. Unlike most of its neighboring communities, Murray operates its own police, fire, power, water, library, and parks and recreation departments and has its own school district.^[7] While maintaining many of its own services, Murray has one of the lowest city tax rates in the state.^[8]

Thousands of people each year visit Murray City Park for organized sports and its wooded areas. Murray is home to the Intermountain Medical Center, a medical campus that is also Murray’s largest employer. Murray has been designated a Tree City USA since 1977.^[7]

Murray, Utah

About Murray, Utah

Murray is a city situated on the Wasatch Front in the core of Salt Lake Valley in the U.S. state of Utah. Named for territorial governor Eli Murray, it is the state's fourteenth largest city. According to the 2020 census, Murray had a population of 50,637. Murray shares borders with Taylorsville, Holladay, South Salt Lake and West Jordan, Utah. Once teeming with heavy industry, Murray's industrial sector now has little trace and has been replaced by major mercantile sectors. Known for its central location in Salt Lake County, Murray has been called the Hub of Salt Lake County. Unlike most of its neighboring communities, Murray operates its own police, fire, power, water, library, and parks and recreation departments and has its own school district. While maintaining many of its own services, Murray has one of the lowest city tax rates in the state.