Small Business Today Magazine MAY 2014 CUSTOMIZED REAL STATE SERVICES | Page 31

EDITORIALFEATURE

Four Common and Avoidable Mistakes

Small Businesses Make
By Chris Sloan

S

mall businesses, particularly in the early stages
and during periods of
high growth, face a number of common legal concerns.
With some planning and good
advice from experienced
counsel, these issues can be
easily addressed. If they are
ignored, some of these issues
can quickly turn into problems
that are often more expensive
and difficult to resolve later.
Here are some of the most
common legal mistakes and
how to avoid them:

No Vesting Restrictions
on Founders

Each founder of a small business typically has the expectation that the other founders
will actively work to build and
grow the company. Sometimes, though, a founder leaves
the company. It could happen
for a variety of reasons: some
good (a great job opportunity); some bad (the founders
no longer get along); and some
tragic (a founder dies).
What happens to the departing founder’s equity? If B