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Your landlord or a supplier can ask for your personal guarantee, which is common business practice. If the business becomes unable to pay the debt, the personal guarantor will be called upon to repay what’s outstanding. In small businesses, the guarantor is usually...

So you’ve registered formal interest, taken care of due diligence, and you’re ready to sign on the dotted line and buy the business. Now it is important to make sure that all the important contracts get transferred from the previous owner to you. It’ll help you make a...

At that time, it is important to appoint an adviser who can assist you further. Professional advice is important to make sure all bases are covered, but getting a lawyer and accountant on board also improves your credibility as a buyer. “A lawyer’s role in the process...

Yes, you read that right. The Law Shop, with offices in Tauranga and Rotorua, is a firm of all women. It wasn’t set out to be that way when director Paula Lines took over the then Rotorua-based legal firm in September 2008. There was no plan in place to keep it ladies...

Paula Lines from The Law Shop explains that this risk can be enough to put some people off having their own business and that this is where setting up a trust can be useful. “If a trust owns your family home, and there is no debt back to you, the house is likely to be...

If you’re starting a business this year, there will be a lot to think about. Are you starting from scratch, or do you want to buy an existing business or a franchise? Buying a business gives you a known name, some structure, and a client base. Starting a brand-new...

Paula Lines, director at The Law Shop, explains that creating the partnership or shareholders agreement and setting up the proper structure for the partnership are the two most important steps in the process. She says it’s about understanding the mechanics of how your...

Most contracts do not become legally binding until it has the signatures of each party involved. By signing off on a document, it confirms each party’s agreement and intention of executing the terms in the contract. Whether you are agreeing to an employment contract,...

Many businesses are operated through companies to limit the liability of the people behind the company, but there are circumstances when a director will be personally liable. It’s important to know when those liabilities may arise. Paula Lines from The Law Shop...

The AML/CFT Act applies to banks, casinos, financial institutions and some trust and company service providers. If you’ve tried to open a bank account or get a loan in recent years, you’ve been asked to provide certain identification and proof of address as well as...

“If it becomes clear that a trust is no longer needed or desirable, the trust can be wound up. For instance when administration costs are too high in relation to the recognised benefits. Also, if the purpose of setting up a trust in the first place was to protect...

A trust is a legally binding arrangement when a person (the settlor) transfers legal ownership of assets to certain chosen persons (trustees) to be held for the benefit of other persons named by the settlor (the beneficiaries). If your family home is in a trust, for...

As this is going to be your livelihood, you’ll need to know exactly what you’re getting into. Paula Lines and her team at The Law Shop provide expert legal advice on all of the aspects of purchasing a business, from the purchase agreement to the lease, so you can...

“It’s very much like the EPA, but it’s a different document. This is the one you need for your business. If you're overseas, become incapacitated, or if your business partner dies and you don’t have this deed sorted, you can count on major headaches. Costly delays and...