Business Planning
Business planning involves many critical components, including entity formation, development of business plans, drafting agreements governing ownership and operations, preparing employee handbooks, structuring ownership changes, estate and succession planning, selling or transferring all or part of a business, establishing relationships with third parties, and dissolving a business. Each phase of a business’s lifecycle requires careful planning and precise execution. Our experienced attorneys provide comprehensive guidance to help you plan, grow, and protect your business.
Operating Agreements
An operating agreement is a foundational document for a limited liability company that defines the rights, duties, and expectations of its members. Addressing these matters early, before disputes arise, is essential. Typical provisions outline management responsibilities, compensation and distributions, restrictions on transferring ownership interests, and procedures in the event of a member’s incapacity or death. A well-drafted operating agreement anticipates foreseeable issues and can save significant time and expense if conflicts occur.
Bylaws
Bylaws serve a similar purpose for corporations as operating agreements do for LLCs. Because corporations are required to hold annual shareholder meetings to elect directors and officers, bylaws should clearly govern the calling and conduct of meetings, voting rights, and dividend policies. Strong bylaws provide structure, consistency, and legal compliance for corporate governance.
Shareholder Agreements
A shareholder agreement is a contract among a corporation’s shareholders that governs their rights and obligations. These agreements commonly restrict the transfer of shares, define voting rights and control issues, protect minority shareholders, establish dispute resolution procedures, and limit competition with the business. Careful drafting is essential, as these agreements shape long-term ownership and control. Our attorneys help clients create comprehensive shareholder agreements tailored to their goals.
Buy-Sell Agreements
Buy-sell agreements are legally binding contracts that define how an owner’s interest may be transferred if an owner exits the business, divorces, becomes incapacitated, or passes away. These agreements may allow remaining owners, or the company itself, to purchase or redeem the departing owner’s interest. They help ensure that owners are not forced into business relationships with spouses, heirs, or unknown third parties. Many buy-sell agreements also include life insurance provisions to fund a buyout in the event of death.
Succession Planning
Succession planning is essential for every business owner. Eventually, retirement, disability, or death will raise the question of who will manage and own the business.
Management succession planning focuses on identifying and developing future leaders to fill key roles. Businesses often use incentives, such as gradual ownership transfers or stock options, to retain and motivate these individuals.
Ownership succession planning addresses who will inherit or acquire your ownership interest. Considerations include whether ownership will pass to all children or only those active in the business, and whether key employees or partners should acquire ownership over time. This approach can provide retirement income while easing the transition for successors.
Succession planning is closely tied to estate planning. Despite its importance, many business owners lack an estate plan. Delaying succession planning can have serious consequences. Our attorneys help clients develop thoughtful, effective plans to protect their businesses and families.
Licensing
Obtaining the proper licenses is critical to operating legally and avoiding costly penalties. An attorney can help ensure that your business has all required licenses and permits, protecting you from unintentional violations. We also assist with preparing and submitting applications, allowing you to focus on running your business while we handle the legal details.
