If you are entering into a business arrangement with another, you should consider whether or not you should enter into an agreement to form a Corporation or Limited Liability Company and which issues should be addressed in such agreement. If that was your line of thinking, then you’re already on the right track.

Without an agreement to form a Corporation or Limited Liability Company, there may be numerous uncertainties as to the relationship between the owners, the expectations and goals of the parties, and as to how the Corporation or Limited Liability Company should be managed and operated. Furthermore, without any written agreement to the contrary, the owners may have the right to share equally in the capital and profits of the business, even if that was not the original intent of the parties.

The foregoing problems can be avoided simply by entering into a properly drafted agreement to form a Corporation or Limited Liability Company which can set out rules concerning matters such as percentage of ownership and ownership rights for the Corporation or Limited Liability Company, profit and loss allocation, management and decision making, permitted expenses, and determining how disputes will be handled.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about Business Agreements, call (800) 734-9900 or clubassist@amerilawyer.comfor assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, Trademarks,Copyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company