Posted on: 28 November 2018
If you have been working for a business or company for a long time, and the owners have asked if you would like to buy into the business or omit your bonus and use it as money to buy into a business, you want to meet with a business attorney. Before you agree to anything, no matter how great the company or relationship with the owners, you want to make sure that you are making the best decision. Here are key questions to discuss and issues that you want to be informed on before you agree or disagree.
Profit Sharing and Pay Changes
You want to know what type of financial benefit this will create for you. If you aren't going to see a pay raise and you are only getting a small percentage of the distributions or other financial bonuses, then it may not be worth the time or efforts.
If you are going to be included in a profit sharing program, get money every time a distribution is pulled, and your income will increase, this may be a great way to brighten your financial future. Talk with your lawyer about the contract, and if there are terms or financial details that should be negotiated.
Responsibility and Title Changes
It's important to know what type of employment obligations and changes are ahead of you. You want the details of your new title for your position as part owner, and what type of responsibilities will be included in this. If there is a lot of risk or a lot of additional work that you don't feel is reflective of what you will be getting in return, you may not want to agree to the contract.
The contract will include what type of say you have business decisions, what you get paid, what you will benefit from being an owner, and what your obligations are. You also want to include what will happen to your shares or ownership if something where to happen to you, and if your shares or ownership will increase as time goes on.
If you have been presented with an opportunity and you think that you are ready to sign the contract and go into business with your current employer, you may want to take the time to go through the fine print first. Let your business attorney look at the contract and then go from there.Share