Once you have formed your business entity, you should have documents drafted that the control the operation of the business, including the rights and obligations of its owners. Depending on the type of business entity, these documents are in the form of by-laws, shareholder’s agreements, operating agreements, and/or partnership agreements. Governance documents can be very basic, especially when there is only one owner of the business. They can also be very complex, such as in circumstances where there are a large number of owners, different classes of ownership, and/or a structure that takes into account the desire for various levels of investors. When drafting these documents, it is important to consider not only the current circumstances and relationships between the owners, but also how the relationship may evolve moving forward.
We have substantial experience in drafting the governance documents that control your business operations. If you have started a business but don’t have governance documents or are considering forming a new business entity and need governance documents, contact the Business Law Group for a free consultation to discuss the best strategy for proceeding.