The purpose of forming an entity and setting in place an agreement between parties is to protect your client’s business and family assets. There are many variables and many options available when forming an entity. However, to properly represent your client, it is necessary to fully understand the intentions of the parties involved and to ensure that the parties are aware of the rules and consequences set forth by the agreements. Remember that an agreement sets out terms for not only forming the business, but management of the business and its profits or losses, all the way to transferring or ending the business at some point.
This program addresses some of the options for formation and transfer of a business, but also cautions that one way may work for one party and not for another. There is no standard fit and the agreement should be tailored to the needs of the parties involved.
Laws vary from state to state, so when forming companies and setting forth agreements, it is imperative that you consult state laws while drafting the agreement to make sure that all issues comply. This applies to not only the state where the company is formed but the particular state where the company will operate.
As always, this information is not intended as legal advice but as a generic overview of the options available to all parties involved in the formation of a company or an agreement relating to that company.
Consider the full details of the previously published article using the link below: