Filing the initial paperwork with the Secretary of State to get your entity up and running is easy. That, however, is only the first step in setting up your company. The next step is making sure all the correct documents are in place. With a corporation you need to have regulations and bylaws that set forth how the corporation will be governed. These documents can be tailored to your desires as to what stockholders can and can’t do with their shares. This is important to you so you can control who you are in business with in the future.
Another overlooked area is buy/sell agreements between stockholders. What happens if one stockholder dies, or worse for you, becomes disabled? How will you buy out your deceased shareholders children or spouse or will they be your new partners? If a shareholder becomes disabled and is no longer able to contribute to the company what do you do? If you don’t have an agreement in place that covers these contingencies you could be facing numerous problems. A buy/sell agreement that covers these contingencies and has a plan to deal with them could mean the difference in keeping your business going or going out of business.
Setting up your company is more than filing a few papers with the Secretary of State and you will need guidance on what other documents are needed. We can provide you the necessary guidance to walk you through the complete process so you can spend your time concentrating on your business.
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