Among the main advantages of such an agreement are: Depending on the type of business (LLC, S Corporation, C Corporation) and the state in which you live, you may legally be required to submit a business agreement. For example, any LLC that operates in California, Delaware, Maine, Missouri or New York is legally required to submit an LLC enterprise agreement. Although LCs in the other 45 states are not legally required to have an enterprise agreement, it is highly recommended. The enterprise agreement and the statutes „give both information about the company, such as the name of the company, the purpose and operation of the company,“ Gauvreau said. „In addition, both documents define the ownership structure and are necessary to understand the function of the business.“ Apart from the shareholders` pact, members of the company`s board of directors are generally required to sign a declaration of principle on conflicts of interest. That is why it is important to establish a shareholder operating contract. Simply put, this is a contract between the company and its shareholders, which sets out certain ground rules for more practical concerns about the operation of the company`s specific activities. A shareholder operating contract may be agreed in advance of the composition of the board of directors to ensure that a minority shareholder is represented on the board of directors. This can be further improved by defining the quorum to include minority shareholder candidates on the board of directors and to require certain decisions on the direction the company can make, either to include unanimous board approval or to seek the approval of a given minority candidate on the board of directors. At Cohen Law Firm, I will work with you to define your goals, objectives and wishes, explain all possible precautions for your particular circumstances and wishes, and enter into a business agreement to do what you want.

If you go through this process, you will be prevented from jumping into the day-to-day running of your business without stopping to account for the inevitable „what-if“ that can happen on the street. Whether you own a local business or a growing business, you have unique needs. Unlike large companies with dozens of junior and heavy employees, I offer demanding advice and low-cost solutions. To discuss how we can protect your business with a well-planned agreement or to make an appointment, call me today at (805) 267-7147 or email me to racohen@racohenlawfirm.com. „The statutes set out the rights and obligations of the parties participating in the corporation and, if properly respected by the parties, restricts the ability of the courts to „penetrate the corporate veil“ and make shareholders personally liable for a company`s debts,“ said Kelly DuFord Williams, founder and managing partner of Slate Law Group.