Posts Tagged "Corporate"

Important Business Formation Documents

Posted by on May 31, 2014 in Blog, Business Formation | 0 comments

Important Business Formation Documents

Business Continuation Strategy Continuations strategies are a much-overlooked aspect that business owners must think about, especially if there is more than one principal owner of the business. Continuation strategies prepare for the unexpected personal circumstances that can seriously affect the business. This could include serious injury, illness, death or departure of a major partner in the company. By having a continuation strategy in place, it will clearly outline what guidelines are to be followed both financially and operationally with the company. If a principal dies or leaves the business, it will outline whether the affected party’s share in the company would transfer to another member, the ownership team or to another person outside of the corporate structure. This agreement should also outline how the duties of the departed principal would be redistributed within the operational activities of the company. This agreement between the ownership team gives the partners peace of mind that there is something in place to protect the owners financially in case the worst happens. Clearly documenting this information could help mitigate severe consequences.   Buy-Sell Agreement A buy-sell arrangement is an important contract that much be signed by co-owners of a business that governs what happens if an owner dies or is otherwise forced to leave the company. This agreement would also document how proceedings would occur if an owner chooses to leave the business voluntarily. In most cases a buy-sell arrangement is backed by a life insurance policy covering all major principals of an organization. Buy-Sell Arrangements are a vital document within business development and should cover all situations that can occur, for assistance with these documents a professional business consultant should review the arrangements that you have...

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A Quick Look at Corporate Structuring

Posted by on May 31, 2014 in Blog, Business Development, Business Formation | 0 comments

A Quick Look at Corporate Structuring

Corporate Structuring Defined: Corporate structuring is the management of recognizing the legal ownership and operational structure of a company. This structure is vital to the foundation of any company. This includes what type of incorporation is best for a business whether that be Limited Liability Corporation (LLC), an S Corporation, or C Corporation. In other cases the best structure will be that of Sole Proprietorship with a DBA or a General Parternship. The designation of S Corp over C Corp has very important tax consequences that must be considered prior to filing for S election. In the case of LLCs, included is the decision to be manager or member managed. There are different operational and tax advantages to all of these options and it is important to make the decision based on the independent needs of the business. This structure must be agreed upon by all incorporating officers or members and managers of the company and is a decision that should not be taken lightly. Also included in corporate structuring should be a detailed operational agreement between all of the principles of the company. This will secure a predetermined course of action for the business given any disagreement arises between officers or members. Corporate structuring can be done by the incorporating parties directly, but for situational advice and a “what if” perspective, it may be in the best interest to consult with a professional in order to structure the business. Should you have any further question or seek additional advice feel free to contact us....

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