CASE STUDIES

UTAH CONSTRUCTION COMPANY NEEDED PLANNING FOR BUSINESS GROWTH & PROTECTION

PRACTICE AREA: BUSINESS TRANSACTIONS & CORPORATE GOVERNANCE

BACKGROUND

The two partner owners of a growing construction business needed help with updating the legal structure and contracts of their business to allow for continuing growth and protection of the owners and the business. Even though the business was grossing more than $1 million per year and had a dozen employees, it was still being operated as a simple general partnership, putting the owners and the business at substantial risk. Most contracts were being done on a handshake basis, and the owners realized they needed to make changes.

LEGAL STRATEGY

Richard Brandt attorneys helped the contractor business owners in several ways. First, special-purpose limited liability companies were created for the business operations, shop property, and construction equipment. This structure helped to limit both the potential personal liability of the owners and the business itself.

Next, with assistance from Richards Brandt construction attorneys, customized contracts were drafted for the contractor to use with its customers and sub-contractors. Now, for the first time, the contractor had clear written contracts that reduced the chance of misunderstandings or bad results if conflict with its customers or sub-contractors arises.

Finally, our attorneys worked with the owners to establish a solid buy/sell agreement between the owners in case either person leaves ownership in the future. The owners, as well as their families and their employees, can have confidence that if one of the owners leaves the company, that the business will continue to provide employment and income for those most dependent on it.

Now with the new LLC business structure in place, formal written contracts, and the detailed buy/sell agreement, the business is set for more growth and will be better equipped to serve new customers, obtain lending if necessary, and become more attractive to potential buyers.

Are the legal details of your business up to date and equipped to provide for growth? If not, please contact to discuss how we might help you.

REVIEWS

“Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip ex ea commodo consequat.”

“Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip ex ea commodo consequat.”

“Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip ex ea commodo consequat.”

Copyright © 2021 by Richards Brandt. All rights reserved. Attorneys located in Salt Lake City, Utah