We offer proper entity selection and formation proposals to best fit your business plan. We not only consider the legal ramifications, but also work diligently to understand your business model so that you can achieve great success and avoid problems that other companies fall prey to. Of all the choices you make when starting a business, one of the most important of those is the type of legal structure you select for your company or companies. Your decision on this issue may have a significant impact not only on your tax returns, but also on the amount of paperwork your company is responsible for, your personal liability and your ability to raise capital.
After choosing a proper business structure we will continue to help you draft an appropriate operating agreement or bylaws as well as anticipated contracts and any business licenses required. We strongly recommend that an attorney be in place for this initial business step. A well-drafted operating agreement sets the basic standards and road map for the company, management team, directors and owners. The operating agreement or bylaws will identify duties and responsibilities, the company’s capitalization structure, profit and loss distributions, and the business’ exit strategy and dispute resolution. The failure to properly draft an operating agreement or bylaws can cause great damage to your business and may lead to costly litigation to determine the parties’ intent where clarity can be assured by careful drafting.
Many individuals believe that they can save time and money by writing their own bylaws and or operating agreements, contracts, etc. Some have done so successfully without utilizing legal counsel. They will simply go on the internet and use a legal alternative, (choose a, b or c; put in a credit card)and magically they have a structure and a company formed with all the “trimmings.” The problem is what happens later. By the time they find out that the structure was incorrect and that “one size does not fit all,” their growth has been stunted and if the operating agreement or bylaws are flawed, they have to not only hire counsel to do it, but to redo it. The mistakes are costly.