Baton Rouge Business And Construction Law Blog

Sometimes two businesses in Louisiana will decide that it would benefit them both financially to join forces and consolidate, in what is generally called a merger. While mergers often involve large companies, it is important to note that even small businesses can be parties to a merger. Moreover, there are numerous transactions that fall under the umbrella of a merger.

Mergers take place when, with the approval of each company's board of directors and shareholders, one company acquires another company, and the acquired company ceases to exist once the transaction is complete. In contrast, in an acquisition one business will obtain the majority stake in another business, but the acquired business will retain its name and legal structure.

Sometimes a contractor in Louisiana makes a bid on a public project, but subsequently determines that their bid is faulty in some way.

Fortunately, there are some circumstances under construction law in which a contractor bidding on a public project can withdraw their bid. First, the bid must have a mistake that is patently obvious, that was made unintentionally and consisted either of a substantial computation, clerical or mechanical error. Alternatively, the bid can be withdrawn if there is an unintended and substantial omission in how much work, labor, materials or services would be needed to complete the project.

An entrepreneur in Louisiana may cultivate and grow a business for many years. However, for a variety of reasons, they may reach a point where they decide that it is best to close their doors. Having an exit strategy in such situations is imperative to ensuring that the process of closing your business runs smoothly and effectively, and that it complies with all applicable business laws.

First, while sole proprietors can decide to close their business whenever they want, if a business owner is in any type of partnership, all co-owners to the business must agree to close it, oftentimes in writing. In addition, depending on the business type at issue, the parties may need to follow their articles of organization when closing their business. In addition, if the business is a corporation or limited liability company, dissolution documents must be filed with the state. If the corporation or LLC fails to do this, they may continue owing taxes and they may still be subjected to filing requirements.

There are many legal aspects to starting a business in Louisiana. It is important that any applicable regulations are adhered to, that the right permits are obtained, that any necessary paperwork is filed with the appropriate entity and that any applicable fees are paid. It is a lot to undertake.

One aspect of starting a new business that should not be overlooked, though, is executing a business plan. This document can provide details on what each party's role and responsibilities will be in the new enterprise. It can serve as a roadmap for how the business will be structured and operated, as well as how the parties intend to expand the business down the road.