Thursday, November 20, 2014

Analyzing Your Legal Entities System

In addition to the abovementioned business organizational structures, every company has a system of legal entities which constitute its legal structure. Which may (and often does) have look quite unlike any other corporate organizational structure.

Which is quite understandable. You set up your business structures to maximize your corporate performance and financial value, but you (actually, your internal and external lawyers) set up legal structure mostly to (a) make sure that all of your business transactions conform to the applicable laws in corresponding jurisdictions and (2) that you use all legal tools available to absolutely minimize the amount of taxes you have to pay to corresponding governments. A dollar saved is a dollar earned. Ditto for any other currency.


Obviously, you must outsource analysis of your legal structure to a corporate lawyer competent and experience in conducting a due diligence – a legal equivalent of a comprehensive business analysis. However, it is still useful to list the key questions that you lawyer must find and give you answers to. 

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