Incorporating and Funding a Franchised Business
Prior to purchasing a franchise or shortly thereafter, franchisees should make sure to incorporate and draft appropriate corporate documents. Making sure these steps are taken will help reduce the risk of personal liability. The “corporate shield” is a strong tool in any business’ risk-mitigation arsenal.
At Garner, Ginsburg & Johnsen, our franchise incorporation attorneys will work through this process with you to make sure you:
- Understand how to maintain the “corporate shield”;
- Know how to run the business; and
- Comprehend the importance of elements in your corporate documents.
The mere act of incorporation is insufficient to insulate franchise owners from liability. This is why it is important to not only form a corporate entity but also to draft the proper documents related to the entity and to comply with those documents.
Additionally, franchisees that seek to bring outside investors into the business in order to fund operations must also ensure that they comply with federal and state securities laws.
Having represented a number of entities at the incorporation and investment phase, our firm is well suited to help you form a corporate entity, prepare necessary corporate documents, comply with securities laws and regulations, and advise you as to how to comply with the corporate statutes and/or documents to mitigate the risk of personal liability.
Contact us now for a free consultation with an incorporation lawyer!