Legal Question in Business Law in Utah

Contracts

Thank you for taking the time to read my question!

This question pertains to business law and contracts. I am involved in a business with three other friends. This business is a LLC bases out of the State of Utah. We are in the process of obtaining some funding/services for the business we are building.

The first group of investors will strictly be cash investors who will invest cash in exchange for equity in the business. The second group of investors will be those who perform contractual work in exchange for equity in the business.

All these people are either friends or family members. We need to draw up simple contracts that states that these people are entitled to x% of the company. The company is currently owned 30/303/30/10. This equity will be diluted to allow for the investors.

What form would you recommend for this contract. Your advice will be much appreciated.

Thank You


Asked on 12/17/99, 1:40 pm

1 Answer from Attorneys
John Hayes The John Hayes Law Offices

Re: Contracts

There really isn't a form. There are many self help document companies that will sell you a form that you then modify. Of course with these types of forms you never know if they are legally binding. If you do a self help form hire a lawyer to look it over. Even though the contract is between friends and family you are all investing money in a business so you have to treat eachother like business partners when it comes to contracts. I have specialized in business and contract law for over a decade. If you would like to save yourself the time and effort of drawing up the contract and then having a lawyer review it I could just draw up a legally binding contract for your business. I am in California but with the internet, phones and a fax machine I am able to practice in places all over the country. If you would like additional information regarding a contract please feel free to contact me toll free at 888-563-8529. The call and consultation are free. I look forward to speaking with you.

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Answered on 12/17/99, 10:56 pm


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