There will inevitably come a time when you’re ready to move on from owning and operating your small business. When that time comes, you’ll need to determine your best option for exiting your business. In many (if not most cases), that will mean preparing for someone to acquire your business. Today’s post details some of the considerations and steps you can take to better position your business for a successful acquisition.

The Bigger Your Company, The Less Options You May Have

I know, it seems counterintuitive. But if you think about how many people are willing or able to pay $1M versus $10M for your “small” business, it’s easier to see that the larger your company, the fewer potential buyers there may…

Read More

Ryan Hogaboam recently wrote on the iVLG blog about what you should know about voluntary, administrative, and judicial dissolution. Dissolution is the process of winding down your business and dissolving the legal entity that is your business. Below I’ve highlighted some key points from Ryan’s post:

Dissolution in Washington

In Washington, closely-held corporations can be dissolved in three different ways: by the shareholders or directors (voluntarily), by the Secretary of State (administratively), or by the courts (judicially):

Voluntarily: By the Shareholders

In order to voluntarily dissolve a corporation, the corporation’s board of directors may ask the shareholders to vote on dissolving the company. Washington’s statutes require two-thirds of the shareholders to approve dissolution for it occur. Following the vote, the company must file Articles…

Read More

Sorting out your company’s owners’ exit strategy is one the most important considerations when forming an LLC. It may sound odd, but deciding how to get out of your small business in the beginning will save you and your business partners time and money down the road. When it comes to LLCs, one of the primary benefits is flexibility when drafting the operating agreement. This can be especially important when deciding on exit strategies, restrictions, and procedures for your small business. Today’s post highlights some of the more common exit provisions in an LLC operating agreement.

Buy sell provisions detail what will happen when a member of the LLC decides to leave the business, dies, or is otherwise unable to continue…

Read More

What is a partnership?
A partnership can be created automatically when two or more people engage in a business for profit. The Uniform Partnership Act states: “The association of two or more persons to carry on as co-owners of a business for profit forms a partnership, whether or not the persons intend to form a partnership.” This means that the neighbor kid and his friend who run a lemonade stand on the corner of your street technically have formed a partnership.

A partnership can offer owners flexibility and relatively simple organization and operation. While it’s generally not the preferred method for starting a business, knowing some of the basics about a partnership can be a useful tool when starting a new business.

Pros…

Read More