Are you a business owner looking to protect your company’s interests? Closely held corporations make up over 90% of all businesses in the United States. This article will provide expert legal guidance on how to safeguard your closely held business.

At Leuchtman Law, our robust corporate and transactional practice is designed to provide comprehensive legal guidance and support for your business. Our experienced attorneys offer:

Comprehensive Services

• Business formation and operation
• Contract negotiation and documentation
• Mergers, acquisitions, and transactions
• Employment agreements and corporate governance

We take the time to understand your unique goals and objectives, providing tailored solutions to meet your specific business needs.

Contact us today to learn how our corporate and transactional practice can benefit your business.

Read on to learn more about our personalized solutions for your company’s unique needs.

Key Takeaways

• Closely held businesses, which make up over 90% of all businesses in the United States, are private companies with a small number of shareholders who own most of the company’s stock. These businesses enjoy flexibility in management and decision-making due to the limited number of shareholders involved.
• Leuchtman Law offers comprehensive legal services for closely held businesses, including general advice and representation, shareholder and partnership issues, mergers and acquisitions, employment and operating agreements, and tax-related issues. The law firm’s experienced attorneys provide expert guidance to help businesses navigate the unique challenges and opportunities they face.
• Legal representation for closely held businesses provides several benefits, such as expert advice and guidance, protection of legal rights and interests, compliance with regulations and laws, and minimization of legal risks. Hiring a lawyer shields the rights and interests of the business and ensures that the company follows all applicable laws and regulations.
• Leuchtman Law has experienced and knowledgeable lawyers who provide personalized and tailored legal solutions to closely held businesses. The law firm has a proven track record of success, an efficient and creative approach to handling business matters, and a commitment to client satisfaction.

What are Closely Held Businesses?

Closely held businesses are private companies with a small number of shareholders who own most of the company’s stock. These corporations have concentrated ownership, with shares held by a few individuals, often family members or a tight-knit group of investors.

Unlike public corporations traded on stock markets, closely held businesses do not offer shares to the general public.

Closely held companies enjoy flexibility in management and decision-making due to the limited number of shareholders involved. They can make swift decisions without the bureaucracy and regulatory burdens faced by public companies.

However, raising capital can be more challenging for these businesses since they cannot easily sell shares to outside investors. Leuchtman Law helps closely held businesses navigate these unique challenges and opportunities.

Our Legal Services for Closely Held Businesses

At Leuchtman Law, we offer comprehensive legal services for closely held businesses. Our team of experienced lawyers provides expert advice and representation on all aspects of running a privately owned company, from formation to dissolution.

We handle a wide range of legal matters, including shareholder agreements, mergers and acquisitions, employment contracts, and tax planning strategies. Our goal is to help your business succeed while minimizing legal risks and ensuring compliance with all relevant laws and regulations.

General advice and representation

At our law firm, we provide comprehensive legal advice and representation for closely held businesses. Our experienced attorneys offer guidance on various aspects of running a private company, such as corporate governance, compliance with regulations, and protecting the rights of shareholders.

We work closely with business owners to understand their unique needs and goals, and develop tailored legal strategies to help them achieve success.

Our team is well-versed in the complexities of closely held business law, and we stay up-to-date on the latest legal developments that may impact our clients. From drafting shareholder agreements and operating contracts to handling disputes and litigation, we provide end-to-end legal support for closely held corporations, partnerships, and limited liability companies (LLCs).

Shareholder and partnership issues

Shareholders and partners in closely held businesses often face unique challenges. Disputes can arise over management decisions, profit sharing, and ownership stakes. Our experienced attorneys help resolve these conflicts through negotiation, mediation, or litigation if needed.

We draft and review shareholder agreements, operating agreements, and buy-sell provisions to prevent future issues.

Leuchtman Law assists with governance matters like shareholder meetings, voting rights, and fiduciary duties. We advise on tax implications of distributions and transfers of shares or partnership interests.

Mergers and acquisitions

The law firm assists clients with mergers and acquisitions, which involve combining two or more businesses into a single entity. Their experienced lawyers provide expert guidance on structuring M&A deals, negotiating terms, and ensuring compliance with legal requirements.

They handle asset purchases, stock purchases, and other types of business combinations, working to protect their clients’ interests throughout the process.

Mergers and acquisitions can be complex transactions, with many legal and financial considerations to navigate. The law firm’s attorneys are knowledgeable about the tax implications of M&A deals, including issues related to pass-through income, S corporations, and personal tax returns.

Employment and operating agreements

Employment and operating agreements are crucial for closely held businesses. These legal documents outline the roles, responsibilities, and rights of employees and owners. They help prevent disputes and ensure smooth operations.

Employment agreements cover job duties, compensation, benefits, and termination conditions. Operating agreements define ownership structure, management, decision-making, and profit-sharing.

Leuchtman Law crafts these agreements to fit each client’s unique needs and goals.

Well-drafted employment and operating agreements protect the interests of both the business and its stakeholders. They provide clarity and stability, which is especially important for closely held companies with a small number of owners.

These agreements also help businesses comply with labor laws and regulations. Leuchtman Law’s experienced attorneys can guide you through the process of creating or updating these essential documents.

Tax-related issues

In addition to employment and operating agreements, Leuchtman Law also helps closely held businesses navigate the complex world of tax-related issues. Our experienced lawyers understand the unique tax considerations that apply to these types of companies, such as pass-through taxation for S-corporations and partnerships.

We work closely with our clients to develop tax strategies that minimize their tax burden while ensuring compliance with all applicable laws and regulations. This may involve structuring transactions in a tax-efficient manner, advising on the tax implications of business decisions, or representing clients in disputes with the Internal Revenue Service (IRS).

At Leuchtman Law, we recognize that tax planning is an ongoing process that requires regular attention and adjustment as a business grows and evolves. We stay up-to-date on the latest changes to the tax code, including the Tax Cuts and Jobs Act of 2017, to ensure that our clients are taking advantage of all available opportunities to reduce their tax liability.

Benefits of Legal Representation for Closely Held Businesses

Hiring a lawyer for your closely held business shields your rights and interests. An experienced attorney ensures your company follows all laws and regulations.

Expert advice and guidance

Working with expert lawyers provides essential guidance for closely held businesses. Attorneys experienced in corporate law offer invaluable insights on complex legal matters. They help business owners navigate issues like shareholder agreements, operating contracts, and tax regulations.

Skilled legal counsel protects the rights and interests of closely held companies.

Leuchtman Law’s knowledgeable team delivers personalized advice tailored to each client’s unique needs. The firm’s attorneys draw on their deep understanding of business law to guide clients through every stage of their company’s development.

Protection of legal rights and interests

Legal representation protects your rights and interests in closely held businesses. Experienced lawyers at firms like Leuchtman Law provide expert advice to safeguard your stake. They help draft agreements, handle disputes, and ensure compliance with laws.

This minimizes risks and keeps your business running smoothly.

Their attorneys are well-versed in issues unique to closely held corporations. They understand the dynamics between majority and minority shareholders. Proper legal guidance prevents conflicts that could harm the company.

Compliance with regulations and laws

Closely held businesses must navigate a complex web of rules and regulations. These include tax laws, labor requirements, and industry-specific mandates. Non-compliance can result in penalties, legal troubles, and reputational harm.

A savvy business attorney can provide crucial guidance in these intricate legal matters. They can offer counsel on proper documentation, important deadlines, and requisite licenses or permits.

A seasoned lawyer can also craft contracts and agreements that safeguard the company. Robust bylaws, operating agreements, and shareholder contracts are critical. They delineate clear roles, obligations, and procedures for resolving disputes.

Minimization of legal risks

Legal representation reduces risks for closely held businesses. Lawyers identify potential issues and create strategies to avoid them. They ensure compliance with laws and protect the company’s interests.

This proactive approach helps businesses operate smoothly and avoid costly disputes.

Experienced attorneys are essential for minimizing legal exposure. They draft airtight contracts, agreements, and policies. These documents establish clear expectations and prevent misunderstandings.

Why Choose Leuchtman Law for Your Closely Held Business Needs

At Leuchtman Law, we have the skills and expertise to guide your closely held business through every stage of its life cycle. Our attorneys in Silicon Valley and the San Francisco Bay Area will work closely with you to understand your unique needs and craft personalized legal solutions to help your company thrive.

Experienced and knowledgeable lawyers

The corporate and transactional lawyers at this firm have decades of combined experience advising businesses of all sizes and industries. The attorneys stay up-to-date on the latest legal developments and trends impacting closely held corporations, partnerships, and LLCs.

They draw upon their deep knowledge base to provide sound counsel on entity formation, governance, shareholder agreements, mergers and acquisitions, and tax planning strategies.

The team takes the time to understand each client’s unique business objectives, challenges, and growth plans. They then craft customized legal solutions that align with those goals while minimizing potential risks and liabilities.

Personalized and tailored legal solutions

At our law firm, our skilled attorneys go beyond providing cookie-cutter legal advice. We understand that each closely held business is unique, with its own challenges, goals, and ownership structure.

That’s why we take the time to thoroughly understand your company’s specific needs and craft customized legal strategies to address them.

Our team excels at analyzing the complexities of your business, from shareholder dynamics to tax implications, to develop solutions perfectly suited for you. We work closely with you to draft airtight operating agreements, navigate mergers and acquisitions, and resolve partnership disputes in a way that aligns with your company’s best interests.

Proven track record of success

The skilled attorneys at our firm have a history of delivering positive outcomes for closely held businesses. We have successfully handled complex transactions like mergers, acquisitions, and partnership agreements for many private corporations in the San Jose area.

The firm has also helped close corporations navigate tricky legal issues related to ownership structure, tax planning, and corporate governance. Whether your business is a small startup in Cupertino or an established family-owned company in Los Altos, you can trust the team to provide the expert guidance you need to succeed.

Efficient and creative approach to handling business matters

At this law firm, we recognize that time is of the essence for closely held businesses. Our team adopts a streamlined approach when handling corporate and transactional matters. We utilize state-of-the-art legal technology and lean processes to deliver results quickly and cost-effectively.

Creativity is crucial when it comes to tackling complex business challenges. Our attorneys think outside the box to develop innovative legal strategies tailored to each client’s specific needs.

Whether it’s structuring a tax-efficient merger, negotiating a mutually beneficial partnership agreement, or creating a custom employee incentive plan, we bring fresh ideas and practical solutions to the table.

Commitment to client satisfaction.

At this law firm, client satisfaction is our top priority. We go above and beyond to ensure that our clients’ legal needs are met with the utmost care and attention. Our team of experienced attorneys works tirelessly to provide personalized solutions tailored to each client’s unique situation, whether it’s navigating complex shareholder agreements or handling sensitive employment matters.

We pride ourselves on our ability to deliver results efficiently and effectively, always keeping our clients’ best interests at the forefront of everything we do.

Our commitment to client satisfaction is rooted in our deep understanding of the challenges faced by closely held businesses. We know that these companies often have limited resources and face unique legal hurdles, which is why we strive to provide cost-effective solutions that maximize value for our clients.

FAQs

1. What is a closely held business?

A closely held business, also known as a closed corporation, is a company owned by a small group of shareholders and not publicly traded on stock exchanges.

2. How are closely held businesses taxed differently than public companies?

Closely held businesses may face double taxation, where the company pays taxes on profits and shareholders pay taxes on dividends. However, they can avoid this by electing S-corporation status with the IRS.

3. What are some examples of well-known closely held businesses?

Examples include Chick-fil-A, owned by the Cathy family, and Hobby Lobby, which fought against the Affordable Care Act’s contraceptive mandate based on religious beliefs.

4. How do closely held businesses raise money without selling stocks?

Closely held businesses can raise money through loans, investments from private investors, or by reinvesting profits back into the company. They don’t have access to public stock markets.

5. Are there any location-specific rules for closely held businesses?

Yes, some areas like Santa Clara County in California have specific regulations for closely held businesses. It’s important to check local laws when starting or running a closed corporation.

6. What are the benefits and drawbacks of running a closely held business?

Benefits include more control over the company’s direction and less risk of hostile takeovers. Drawbacks include limited access to capital, less liquidity for shareholders, and potential conflicts among owners.