Legal Advise on Commercial Trades

[IDrago]

Hi Guys,

 

1. If I were to broker a business transaction between 2 companies, is there a way whereby I can get the supplier or buyer to sign a legal document giving me a return for the deal without setting up a company myself? (i.e. I am represented by myself and not a company). Need advice from bros here
2. If No 1 is possible, can I get the companies to sign an NDA with me?

 

Appreciate advice from bros who are knowledgeable in legal terms.. Thanks !!

Edited July 13, 2015 by IDrago

[L_club23]

Hi Guys,

 

1. If I were to broker a business transaction between 2 companies, is there a way whereby I can get the supplier or buyer to sign a legal document giving me a return for the deal without setting up a company myself? (i.e. I am represented by myself and not a company). Need advice from bros here
2. If No 1 is possible, can I get the companies to sign an NDA with me?

 

Appreciate advice from bros who are knowledgeable in legal terms.. Thanks !!

 

Both seem entirely possible to me...

[A_korusawa]

depend on the quantum; if its huge enuff . . . its worthwhile to get it legally drafted.

afterall is just ard 1k-2k. moreover, it gives both the buyer & seller the insurance and account booking if a banking services engaged . . .

 

but if its small amount, you can easily google for a standard draft with effective dated signatories (yourself, payee & payer and best with verifier) to cover the deal if in 'phases'.

 

 

[IDrago]

depend on the quantum; if its huge enuff . . . its worthwhile to get it legally drafted.

afterall is just ard 1k-2k. moreover, it gives both the buyer & seller the insurance and account booking if a banking services engaged . . .

 

but if its small amount, you can easily google for a standard draft with effective dated signatories (yourself, payee & payer and best with verifier) to cover the deal if in 'phases'.

 

 

 

Thanks bro, for the advise.. Its not a huge sum, potentially between a couple of thousands to possibly 5 figure USD. However, since it is going to be a monthly recurring deal, I prefer to get it legally done.

 

So are you saying that I can have the agreement between individuals and companies (i.e. I don't have to set up a company myself) ?

 

Thanks

 

Both seem entirely possible to me...

 

Thanks bro, which means I can get a lawyer to do it without setting up a company myself?

[Jman888]

 

Thanks bro, for the advise.. Its not a huge sum, potentially between a couple of thousands to possibly 5 figure USD. However, since it is going to be a monthly recurring deal, I prefer to get it legally done.

 

So are you saying that I can have the agreement between individuals and companies (i.e. I don't have to set up a company myself) ?

 

Thanks

 

Thanks bro, which means I can get a lawyer to do it without setting up a company myself?

 

 

 

since you mentioned the income is from overseas, there are more issue on withholding tax (if any) and will you declare tax in you IRA?

 

Hence if it is on regular basis, you may or may not need to register a company but it is better if you seek tax advice.

[Hydrocarbon]

TS, why would you not want to set up a company by yourself?

It would help to protect your interests, especially if you set it up as a Private Limited company. If the deal goes sour, or if one or both sides decides to litigate against you, it will protect your assets.

Cost is $315 to register the name and set up the company. That way, in most situations, the amount you may lose is up to the paid up capital of the company / assets of the company. Besides, if there is extra income, the company can help to absorb some first before profits are paid out. And any items you buy (for legal / correct usage) for the company can be expensed off.

[IDrago]

 

 

 

since you mentioned the income is from overseas, there are more issue on withholding tax (if any) and will you declare tax in you IRA?

 

Hence if it is on regular basis, you may or may not need to register a company but it is better if you seek tax advice.

 

Thanks for the advise..

TS, why would you not want to set up a company by yourself?

 

It would help to protect your interests, especially if you set it up as a Private Limited company. If the deal goes sour, or if one or both sides decides to litigate against you, it will protect your assets.

Cost is $315 to register the name and set up the company. That way, in most situations, the amount you may lose is up to the paid up capital of the company / assets of the company. Besides, if there is extra income, the company can help to absorb some first before profits are paid out. And any items you buy (for legal / correct usage) for the company can be expensed off.

 

Hi.. that's because under my current job, there is a need to declare if I own any companies and I do not want to rock the boat till the said deal is firm and can replace my employment or continue working and using the deal as a side income.. any advise ? thanks

 

I am actually acting as the middleman to broker deals for both sides and hence, do not need to keep inventory or incur additional costs

Edited July 13, 2015 by IDrago

[Kusje]

 

Thanks for the advise..

 

Hi.. that's because under my current job, there is a need to declare if I own any companies and I do not want to rock the boat till the said deal is firm and can replace my employment or continue working and using the deal as a side income.. any advise ? thanks

 

I am actually acting as the middleman to broker deals for both sides and hence, do not need to keep inventory or incur additional costs

 

Just because you don't keep inventory doesn't mean you have no risk - if the deal screws up because of your negligence, they can then come after you. Oh, you will surely incur "additional cost" when you have to buy laptop/printer at home

[Hydrocarbon]

Hi.. that's because under my current job, there is a need to declare if I own any companies and I do not want to rock the boat till the said deal is firm and can replace my employment or continue working and using the deal as a side income.. any advise ? thanks

 

I am actually acting as the middleman to broker deals for both sides and hence, do not need to keep inventory or incur additional costs

 

What some people I know do is ask someone trusted to be director / shareholder, then transfer over once they can be director / shareholder. Not sure if it's a grey area for ACRA though, so I can't give any advise on this portion. =P

 

Anyway, like what @kusje has mentioned, the worry is not the inventory / overheads. It's in case the deal goes sour at any time. Your personal assets will be protected, if you made the deal as a private limited company, instead of as an individual. Sole prop is quite useless in this case.

 

The main advantages to having a company is the protection from liability, as well as the tax benefits.

[L_club23]

 

Thanks bro, for the advise.. Its not a huge sum, potentially between a couple of thousands to possibly 5 figure USD. However, since it is going to be a monthly recurring deal, I prefer to get it legally done.

 

So are you saying that I can have the agreement between individuals and companies (i.e. I don't have to set up a company myself) ?

 

Thanks

 

Thanks bro, which means I can get a lawyer to do it without setting up a company myself?

 

I would think you can do it yourself, possibly even without a lawyer if you know your stuff.

Edited July 13, 2015 by L_club23

[IDrago]

 

What some people I know do is ask someone trusted to be director / shareholder, then transfer over once they can be director / shareholder. Not sure if it's a grey area for ACRA though, so I can't give any advise on this portion. =P

 

Anyway, like what @kusje has mentioned, the worry is not the inventory / overheads. It's in case the deal goes sour at any time. Your personal assets will be protected, if you made the deal as a private limited company, instead of as an individual. Sole prop is quite useless in this case.

 

The main advantages to having a company is the protection from liability, as well as the tax benefits.

 

Hmm.. how about is it possible to get the 2 companies to directly deal with each other after signing my cut off to me legally?

 

I would think you can do it yourself possibly even without a lawyer if you know your stuff.

 

Thanks bro, due to the complexity of the deal, i.e different countries involved, I rather leave the headache of drafting of the document to the lawyer

[Jman888]

 

Hmm.. how about is it possible to get the 2 companies to directly deal with each other after signing my cut off to me legally?

 

 

as a middle man, probably get you cut only from one party when you get them to deal with each other. So you either get it from the vendor or the customer, usually the vendor but that is where your agreement with the vendor need to be established.

[IDrago]

 

 

as a middle man, probably get you cut from one party when you get them to deal with each other. So you either get it from the vendor or the customer, usually the vendor but that is where your agreement with the vendor need to be established.

 

That's why I would like to keep things as uncomplicated for myself as possible.. i.e. perhaps I can get the 2 companies to deal directly with each other, but my cut have to be established .. my other concern is that, yes, maybe they can draft me my comms for like a contractual period, eg 1 year, 3 years, after that, they by-pass me.. What's the best options to protect my interest in terms of liabilities and potential bypassing?

[Hydrocarbon]

Hmm.. how about is it possible to get the 2 companies to directly deal with each other after signing my cut off to me legally?

Thanks bro, due to the complexity of the deal, i.e different countries involved, I rather leave the headache of drafting of the document to the lawyer

 

1. Yes, it is possible. But I have no knowledge of this, so I can't say any further.

 

2. Do note that in several countries, contracts in English might not be legally binding. You can have both parties signing, sompahing and taking blood oath, but once the project / work is started, cut you out all the same.

 

3. You asked about whether your comms might be given for just a contractual period. Do think about whether the both parties (the two companies you're working with) can in fact, do more than what you've negotiated for them, over your head, and how will such extra sales be considered. (Meaning, you got company A and B to agree to 100 units a month, and you're paid the comms on that 100 units. If they either increase to 200 units, or have 100 more units of a second item, will you be shortchanged?)

 

This is in addition to the time factor you've raised.

 

Which is why, I would really recommend doing it as a company, so you can have more control, especially if the both parties do not have direct communication with each other.

[Yuan]

 

That's why I would like to keep things as uncomplicated for myself as possible.. i.e. perhaps I can get the 2 companies to deal directly with each other, but my cut have to be established .. my other concern is that, yes, maybe they can draft me my comms for like a contractual period, eg 1 year, 3 years, after that, they by-pass me.. What's the best options to protect my interest in terms of liabilities and potential bypassing?

 

It is preferably advise to have an agreement in writing between yourself and the relevant parties involved.

 

As many bros have advised, I would concur that a company setup would protect you and your interests. However, your challenge or issue would be that declaration form that you need to make with your current company. You may wish to check your HR policy in this respect if you make a "not so accurate" declaration in the event that you proceeded on the option of having a company setup while you are still an employee of the company. I am assuming that your declaration form is an annual affair for every employee of the Company.

 

Finally, if the other parties involved are commercial entities, my opinion is that you may wish to spend a bit more money and engage a law firm to iron out the agreement and your company on your behalf. It may save you some headache and give you more sleep.

[IDrago]

Thanks for all the generous contribution guys, I will go get some legal advise .. appreciate!!