Every person and company that conducts business uses contract law in one way or another. This could be for buying and selling products or services, for licensing activities, employment agreements or insurance policies.
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Partnership Agreements
A partnership agreement is an essential tool for establishing the relationship between business owners. It also outlines the structure of the business and how profits, losses, and draws will be distributed.
The contract will stipulate the initial capital contributions and the percentage of ownership each partner holds. It will also specify how the partners will be paid, including a minimum salary requirement. Whether or not the partners will file federal taxes as individuals and how they will report their share of income on tax returns will be determined.
Most importantly, the contract will establish the decision-making process and the responsibilities of each partner in the management of the company. It will also include a dispute-resolution procedure in case a disagreement arises. It will also explain the procedures for joining and leaving the partnership as well as how a dissolution will be decided upon (by vote). In addition, it will state that each partner is personally liable for any debts and obligations of the company.
Operating Agreements for LLCs
An LLC operating agreement is a document that outlines how a business will be run by its members. It addresses various operational issues such as profit allocation, work-load distribution, and capital transactions. It also addresses tax concerns such as how profits and cash will be distributed to members based on their capital investment. It is important to consult with an accountant before drafting an LLC operating agreement.
Operating agreements aren’t legally required in most states, but they do help guard a company’s limited liability status by heading off financial and management misunderstandings later on. It will also state whether the business is to be managed by a single member or multiple owners, and it will state corporate officers’ power and compensation.
An Atlanta business attorney can assist with non-compete agreements that protect a company from losing staff to competitors who may have inside knowledge and contacts in the same industry. A well-planned non-compete can safeguard a business’s profitability and competitiveness.
Corporate Binders
A corporate kit is a binder that houses the paperwork and important company details for a new corporation or limited liability company (LLC). The kit includes a gold-decorated 3-ring turned edge binder, custom labeled with the entity name, index tabs for each document, 10 numbered customized stock certificates and a stock transfer ledger. It also has a solid gold embossed corporate seal embosser and carrying pouch.
The kits are designed through years of industry experience and consumer demand. They are state-specific, meaning that if you incorporate in Delaware, the Corporate Kit will contain information pursuant to Delaware law.
While no state requires you to have a formal corporate kit, it can be a useful way for companies to stay organized and make their documents easy to find when presented to banks, investors or other parties. This can reduce the likelihood of legal disputes or fines. Additionally, it can look professional and give the business a sense of credibility.
Partnership Disputes
Many people who start businesses form partnerships, and these can be very successful. However, it is not uncommon for disputes to arise. These can be caused by a variety of things including failure to honor fiduciary duties, breach of contract or other legal obligations set forth in partnership agreements or other business contracts, confidential information theft, and more.
In addition to a monetary cost, these conflicts can be very emotionally damaging for the parties and can damage a company’s reputation in the market place. This makes it important to seek the advice of a qualified Atlanta business dispute lawyer as soon as possible. A lawyer can help to find a suitable resolution that will not have a long-term negative effect on profitability or assets and avoid any unnecessary resentment between partners. Many of these conflicts can be resolved without the need to file a lawsuit, which is expensive, contentious, and often takes months to schedule a trial date.
