A Letter of Intent or “LOI” functions to outline the basic terms of a transaction before parties begin conducting due diligence and negotiating and drafting a formal agreement.  LOIs can be used in all types of transactions whether it be a business acquisition and sale, real estate purchase and sale, lease, or a loan.  Another important aspect of a LOI is whether the parties intend it to be binding or non-binding.  In most cases, some parts of the LOI will be binding, while other aspects are non-binding.

Indiana’s Business Flexibility Act which allows the formation of limited liability companies (LLCs) has been a hit with small and large business owners alike. The LLC has the advantages of income “passing through” to individual owners (thus, avoiding a separate business-level tax) like a partnership, but provide liability protection like a corporation.