Chicago Business Lawyer Blog

The recent closing of several local Chicago neighborhood bars and taverns shows that city officials are putting the squeeze on these local and often long-running businesses.

In many cases, liquor law licensing and zoning issues require the skills of a Chicago small business attorney, who can assist in helping these companies stay afloat despite political pressure. Chicago small businesses may also need legal representation when handling Chicago real estate issues. Whether zoning or the sale and purchase of real property, a small business' location and contract to lease, rent or purchase must be iron-clad.

A recent Chicago Sun-Times article reports that local neighborhood taverns -- once considered the lynchpins of many Chicago communities -- have been going out of business. The newspaper reports that old standbys Johnnie's Lounge, Paulie's Place and MaxTavern have all closed in recent years.

For generations, these small businesses were representative of the many ethnic communities throughout the city. Then, many factors such as the economy, a change in preference as well as city regulations and other difficulties have led to problems. Gentrification -- where wealthier landlords buy up properties and fight against small businesses located within -- has also been one of the final nails in the coffin of these neighborhood hubs.

Some bar owners believe that today, bars and clubs are catering to 20- or 30-year-olds who want a different atmosphere than in years past. The older taverns were about camaraderie and a sense of the neighborhood. Now, many modern bars are located in entertainment districts.

Opening a new tavern can be difficult. Liquor license moratoriums can be put in place in local neighborhoods and buyers must purchase the entity that owns the existing tavern and license, the newspaper reports.

Whether opening a new tavern or attempting to keep alive an existing business that has been around for generations, a Chicago small business lawyer can be helpful. The legal hurdles provided at the city level are one issue. You also need to consider that making the right funding, real estate and personnel decisions can be challenging.

Any small business can have a difficult time settling real estate issues, especially if there are zoning guidelines that must be handled as well. As the character of a community transforms, especially as properties change hands in the battered economy, these issues can be even more prevalent. When the culture of neighborhoods morph, so do the needs and desires of property owners.

When small businesses are attempting to start up and find a permanent home, the right location isn't always the one with the most traffic. Often, a good location for the company also depends on the neighborhood and the level of community resistance.

In any situation, picking the right location and dealing with the contractual issues, possible sales and purchases and other real estate issues is important to getting off to a good start as a small company. An experienced Chicago small business attorney can help in these situations and more.

Continue reading "Chicago Taverns Require Small Business Legal Representation" »

Three recent stories show that small businesses can't afford to make many mistakes. This is especially true when they are deciding how to best deal with financing a small business in Chicago .

If a mistake is made early on, it could be a cloud that hangs over the company for years. If the wrong terms are agreed upon or the structure of a financing deal isn't beneficial to the company, they could be sunk.

In many of these cases, an experienced Chicago small business lawyer is the tool needed to make sure that the company's leaders are making sound decisions, weighed with the possible legal repercussions, to ensure the business' funding is going to allow it to be successful. Small businesses are a risky proposition for banks and lenders and without much of a history or proven track record, a business could get sucked into poor financing rates or terms that can keep them in a rut.

Several recent stories show the perils of making small business owners who make poor financing decisions. For one, The Wall Street Journal is reporting that the Chicago News Corporation is halting operations over this very issue.

The company, started just over two years ago, was designed to compete with Chicago's daily newspapers and other media options at a time when the newspaper industry was struggling. But because of funding issues, the company has told its employees it intends to shut down.

The news source, which has covered politics, business and other issues on its website and has dedicated articles to The New York Times every week, was started by a group of prominent journalists. The staff was recently told that because of funding problems, the website would soon be shut down.

As newspapers have struggled with increasing costs to print to supplies as well as the increase in Internet competition and a hit to circulation, many start-up nonprofit news sites have surfaced in recent years.

CNNMoney is reporting that small businesses are in a tough position because banks, which are recovering from the Great Recession themselves, are having a difficult time lending to small businesses. And while banks demand collateral, such as land or equipment, that may not be possible for many small companies.

This has led to many companies to seek riskier loans to get by. The article goes on to state that the cash advance industry -- which may charge outrageous interest rates to make up for the risk -- are making a killing at the expense of small business owners.

CBS Chicago reports that there may be some help for local businesses, however. The City Treasurer's office has a program that has provided 115 loans since 2009. City leaders believe that the loan program for small businesses is a jobs boost, as 90 percent of the city's businesses are classified as small business.

The city loans range from $2,000 to $50,000 and these are amounts that small businesses typically can only get by dipping into personal funds or high-interest loans.

Small businesses must be successful in order for our country to continue to grow and prosper. But if companies are taken advantage of by these risky, high-interest loans, it can sink as many businesses as it helps. While city-run programs may be beneficial, they must be properly vetted as well.

An experienced and skilled Chicago small business attorney understands the concerns of a small business owner. Analyzing all the risks and ensuring that legal loopholes aren't going to come back to bite the business is important. Be prepared when making the critical decision of how much to finance and from whom.

Continue reading "Chicago Business Attorney Crucial When Small Biz Decides on Financing" »