Involve a Lawyer or not?

[texaspreneur]

We're getting VERY close to pulling the trigger on a business acquisition. It's fairly straight forward, but I need to do a couple things:

-Form my/our business entity (LLC)
-Buy the business entity from the existing owners
-Form a property lease from the land owner (also the current business owner)

While we've verbally agreed on the terms, I need to make it official and I'm not quite sure how to do that. I'm getting estimates that lawyer fees will be upwards of $5,000 just for these items, so my question is, would a written & signed agreement between us and the existing owner be binding or do I need to get a lawyer involved?

Thanks!

[zharlene]

Since it involves leasing a property from the current business owner (the business of which you want to buy), I think it's important to have a lawyer involved. You will have to pay quite a bit for a simple service, but it'll be worth it.

[rickawho]

As a lawyer, I'll be the first to admit that legal fees always seem high. At the same time, consider what you potentially stand to lose if things go wrong and your paperwork is not legally in order. At least if you had a lawyer prepare the documentation, you have someone to go after if there is something wrong with it. Otherwise you will only have yourself to look to. In your case, it is not the lawyer that makes the agreement binding because of any authority, but it should be the lawyer who puts everything together to ensure that you have not left any holes open for something to go wrong.

Think of it like insurance - it's a waste of money until you need it, and then it's worth every penny.

[rogercbryan]

Anytime you have to ask yourself if you should get a lawyer... you've already answered your own question...

[texaspreneur]

Thanks guys...I'll just eat the fees...would rather have the peace of mind.

[nateharward]

A lot of times the state sponsors free workshops just on that, you ought to look it up.

[bizdev]

$5000? Way too high. Shop around. I only paid a fraction of that and my lawyer was absolutely great. Besides going over my franchise contract with a fine tooth comb and changing my lease to my advantage and setting up the corporation he gave me great advice with several other areas of the business. Plus he was quick to help me out when I was being threatened with an ugly law suit from the landlord (a big New York corporation). He got them off my back and didn't even charge me.

Believe me, a good attorney will be a godsend in your hour of need.