Kensington Business Contract Lawyers

Attorneys Helping Businesses Protect Their Rights in Contractual Agreements in Kensington, Maryland

Kensington may be a small town, but it supports a wide variety of businesses. These include antique dealers and design shops, restaurants and service providers, and entrepreneurs who run consulting firms, creative studios, and online businesses. For these businesses, having the right contracts in place can make sure they will be able to operate successfully. Clear agreements can be especially important when a small business has limited resources for litigating business disputes.

Fox & Moghul provides legal help to businesses in Kensington, ensuring that they can establish the proper contracts. Our lawyers have a comprehensive knowledge of Maryland business law, as well as a genuine appreciation for the needs of small and growing companies. We will provide honest advice on the best ways a business can protect its interests, and we will work to put the agreements in place that will help our clients achieve their goals.

Contracts When Establishing a Business

The documents signed during the business formation process can shape a company for years. With the proper terms in place, owners and partners can prevent costly misunderstandings.

Partnership Agreements

Some owners may choose to establish a general partnership in which every partner will help run the business. Others may choose a limited partnership, which will allow investors to contribute money without being involved in managing the company. In either case, a partnership agreement should define each partner's role, contributions, share of profits, and rights if the partnership ends.

LLC Operating Agreements

An LLC comes into existence when its articles of organization are filed with the Maryland Department of Assessments and Taxation. An LLC operating agreement should explain who will manage the company, how major decisions will be approved, how profits will be shared, and how a member's interest may be transferred or bought out. Even a single-member LLC can benefit from a strong operating agreement that will show that the company is separate from its owner.

Founders Agreements

Founders of a startup may split equity before the business has customers or revenue. A founders agreement can record that split, set vesting schedules, and assign intellectual property to the company. These agreements must comply with securities laws.

How Shareholder Agreements Can Help a Corporation Succeed

A corporation's charter and bylaws will provide basic rules, but a shareholder agreement will allow owners to customize how the company will be run and protect it from disruption. Shareholder agreements can help a corporation in several ways:

• Preserving Tax Status: Many small corporations elect S corporation status. An S corporation may have no more than 100 shareholders and only certain types of owners. Transfer restrictions in a shareholder agreement can prevent a sale that would accidentally end the election.
• Keeping Ownership in the Right Hands: Rights of first refusal can give a corporation or other shareholders the chance to buy shares before they are sold to an outsider.
• Planning for Life Events: Buy-sell provisions, which may be funded with life insurance, allow a corporation's remaining owners to purchase a deceased or disabled shareholder's stock at a fair price.
• Organizing Leadership: Shareholders can agree on how directors will be elected and which decisions require broad approval. Directors will be required to meet the proper standards of conduct, including acting in good faith and in the corporation's best interests.
• Resolving Disagreements: Mediation, arbitration, or structured buyout procedures can resolve deadlocks without shutting down the company.

Licensing Agreements

Licensing allows a business to use creative works, technology, or brands owned by others, or a business may earn income by allowing others to use its intellectual property. Many Kensington businesses license intellectual property without realizing it. A shop that plays background music, for example, may need a public performance license. Businesses that hire photographers, designers, or writers will need to pay close attention to whether they receive a license or full ownership.

What a Commercial Lease Should Address

When businesses enter into commercial lease agreements, our legal team can review these agreements and help them answer questions such as:

Can the Space Be Used for a Specific Business?

A lease should confirm that the intended use is permitted. A landlord should be responsible for any zoning problems that existed before a tenant moved in. A permit contingency can keep a business from paying rent on space it cannot use.

Who Approves Changes to the Building?

Much of Kensington lies within a designated historic district. Exterior changes to historic properties may require specific permits. A lease should state who will apply for approvals for signs, storefront changes, and renovations, and who will pay for them.

What Happens if the Property Is Sold or Refinanced?

A subordination agreement can protect a business's right to stay in the space if the landlord's lender forecloses or if ownership of the building changes hands.

Can the Business Leave or Transfer the Lease?

Early termination options and the right to assign the lease if a business is sold will provide flexibility as a business's plans evolve.

Contact Our Kensington, MD Business Contracts Attorneys

Strong legal agreements can help businesses begin operating on firm ground, run smoothly, and adapt as they grow. At Fox & Moghul, our attorneys can guide clients through the issues that will need to be addressed when establishing formation documents, shareholder agreements, licenses, commercial leases, and other types of contracts. Contact our Kensington, Maryland contract lawyers at 301-409-5316 to schedule a consultation and discuss your business needs.