The difference between many companies and a family-owned or privately-held business is clear…it's not just your business, it's your life.

The unique challenges facing a family-owned or privately-held business continue throughout the many stages of growth, development, and transition that these companies experience. The legal questions that need to be addressed by the owners begin even prior to formation, when tax and governance planning is crucial. Questions continue and become more diverse as the business expands and grows, including questions relating to raising capital, management and employee issues, acquisitions, divestitures, strategic planning matters, and the always potential internal ownership conflict. Legal questions are especially highlighted at the time the founders or current owners decide to exit the business, either by transferring the business to the family's next generation with an acceptable business succession plan, or by otherwise selling or converting the business into assets that can be more readily passed on to the next generation.

THE SOLUTION
Rubin Katz attorneys understand and represent a large number of family-owned and privately-held companies in a variety of industries, including banking, construction, healthcare, manufacturing, retail, and real estate. On a daily basis, our attorneys assist and counsel business clients with the critical decisions that every business owner faces. We have successfully represented the first, second, and even the third generation of many family-owned or privately-held businesses.

We take great pride in representing family-owned and privately-held businesses. Responding to the multidisciplinary needs of these uniquely positioned companies, our experienced attorneys are available as trusted company counsel. Following is a sampling of the substantive legal questions that may arise for our family-owned and privately-held business clients, and for which we are available for immediate response and counseling:

• Should our business be organized as a corporation, limited liability company, partnership, or some other legal entity for tax, liability protection, or other reasons?
• Should we purchase or lease the land and buildings needed for our company?
• Should we purchase or lease our manufacturing equipment, vehicles, and other physical assets?
• How much funding will we need? Should we borrow from commercial or other lenders, or raise capital from outside sources? How much of our own money should we plan to invest and what are the possible consequences of using someone else's money?
• What are the comparative tax consequences of purchasing, leasing, borrowing, or contributing?
• When we are ready to hire, what kind of employment, non-compete, or other agreements will we need?
• How do we manage employees, including structuring compensation and benefit plans, establishing policies and procedures, disciplining employees, and avoiding or defending discrimination claims?
• How do we protect our valuable ideas, trademarks, copyrights, and other proprietary information?
• What steps can we take to minimize personal risk and indemnify our board members and officers from liability? How can we get the most knowledgeable individuals to serve on our board?
• What happens if a lawsuit or arbitration action is filed against us, or how do we approach the issue of whether or not we should bring a lawsuit against someone else?
• If we have additional shareholders, what are their rights and what are ours? Can we establish a reasonable and orderly method of protecting the closely-held nature of our company and prevent the transfer of ownership to outsiders?
• How do we prepare to have our children take over the business when we are ready to retire or slow down? Can we transfer the value of the company to our children and grandchildren without giving up management control?
• Once we turn control of the company over to the next generation, how can we help to ensure our own financial well-being?
• If, and when, the next generation does take over, how do we make the transition a smooth one?
• What are our options if our children do not want to be involved in the business?
• How can we best prepare the company for a sale, merger, or the potential of going public if we choose to pursue any of these possibilities? 

THE CHOICE
Rubin Katz offers a diverse group of attorneys concentrate on the specific issues that may confront a family-owned or privately-held business owner. This allows us to address the legal situations described above, as well as the many other legal issues that a family-owned or privately-held business may encounter.