Regardless of your business structure (LLC, S Corp, C Corp, partnership) it is helpful to address the following areas:
Limit bickering among shareholders, partners, members and family by having agreements in place. Agreements allow you to define both the roles and responsibilities for all participating owners.
You can set up these internal agreements with the help of a business attorney, and determine who is best suited to be CEO, president, manager, secretary, etc. Defining these roles will help eliminate any questions or confusion about responsibilities you may face down the road.
Other agreements you may want to consider directly relate to the business’ finances. How is the business funded? Is someone putting up initial seed money, and how will this money be recouped? Will additional funding be made if necessary? Making an agreement that details all of this information is important to the success of the company, and can help eliminate future problems. Your attorney can help draft such agreements to address these issues, be it a shareholder agreement, partnership agreement, or operating agreement.
You may want to identify one or more owners, or a combination of owners and managers or financial people as a small team to assume responsibility for working with your attorney to draft, negotiate, and sign these documents and periodically review them as needed. This should be discussed as part of your business structure.
Setting up your privately owned or family owned business for success is about planning. Consult BoneeWeintraub for professional assistance on setting up and structuring your business, as well as reviewing your current business structure and operations.