This blog entry is the second in a series of what you need to know when starting a business in Florida.
QUESTION: Should I rent my business location or purchase my corporate office?
Over half of startups/small business formed fail within the first three years of existence. Generally, the main reason why these businesses fail is due to an improperly negotiated lease or purchasing the corporate headquarters at the wrong time. In additional to corporate/business and real estate law, a good portion of our firm’s practice is concentrated in bankruptcy law; and many of our business client have been forced to file bankruptcy as a result of significant outstanding debt related to the company’s corporate headquarters.
As such, it is important to engage knowledgeable professional, including an experienced commercial real estate agent, real estate attorney and tax accountant to assist you in determining whether it is proper for your company to lease or own its corporate headquarters as there are certain legal and tax advantages for each option. The principal of The Wallace Law Group, Steven Wallace, has conducted extensive lectures on Commercial Leasing and Commercial Purchase Contracts.Further, once you decide on the particular structure, it is imperative that you have an experienced real estate attorney review your lease or purchase contract to properly protect your interests. A major mistake many startup companies make is that rely on their real estate agent to solely negotiate their real estate transaction. Fundamentally, real estate agents (unless otherwise disclosed) in Florida are transaction brokers (i.e. their allegiance is to close the transaction NOT protect your interests); whereas attorneys represent the client’s interests. As such, it is always important to have an experience and knowledgeable attorney to protect your interests in these major transactions. WE CAN HELP!!!