Business law attorneys can protect your new company in three simple steps so you have the foundation and direction necessary to progress successfully.
Starting a business is an exciting experience. As an entrepreneur you have no doubt invested many hours of work and thought into your company and it is important to protect your work. You most likely have an idea about how you want the company to run, who will be serving in different positions, and what their responsibilities will be. To ensure these ideas are executed correctly, you need to discuss them thoroughly with your partners and communicate them clearly to the rest of the team.
Three Steps to Success
There are three simple steps you can take to ensure your company runs smoothly and efficiently. A business law attorney can help with each process so that every piece is documented clearly and complies with state law.
Draft a Business Plan: Perhaps one of the most important things you will do when organizing a new business is drafting the business plan. This document outlines many important aspects of your business including clientele, location, operations, financing, leadership, employee structure, business strategy and more. By creating a solid business plan, you have something consistent to rely on when making decisions and planning future goals. You also have a document that you can share with investors and banks so they can understand your business and analyze your potential for growth when you are seeking funding or loans. For this reason, it is important to have a very thorough plan in place and to consider hiring a business lawyer to review the document for you to ensure it is sound.
Create a Buy-Sell Agreement: This is an important document if you are starting your business with one or many partners. The buy-sell agreement protects all the partners and stakeholders from unexpected situations. For example, if one partner were to die unexpectedly, a buy-sell agreement would outline who is allowed to purchase or accept the transfer of that partner’s ownership interest. This can prevent problems and confusion related to surviving family members assuming ownership. It also clearly outlines issues such as how shares are sold or transferred if one partner dies or retires and defines a set price for the buyout of shares. Again, this is an important document to have a business lawyer review. By taking time to draw this up correctly, you can prevent difficult situations in the future.
Prepare Corporate By-Laws: Corporate by-laws are another important document to create when starting a business. These outline details such who will sit on the board of directors, director responsibilities, what the process is for hiring new directors, how stock is managed, when and how often meetings are held, who will attend and more. This is a key document and should be reviewed by a business law attorney to make sure it complies with all state requirements and spells out important operational procedures clearly and effectively so there are no disputes once you are up and running.
Once you have established your business, take the time to sit down with a business lawyer and your partners to write up these important documents. They will solidify your business plan so everyone is on the same page going forward and set your company up for success!
Michigan Legal Solutions
At Seglund Gabe Quinn Elowsky & Pawlak, PLC, we have helped area entrepreneurs and small business owners build a solid foundation for long term success. Our attorneys are trained and experienced in business law, and understand that small businesses that have a strong legal foundation can accomplish their goals and grow into well-known and well-respected business enterprises. Many of the small business relationships that our firm has developed over the years have lasted more than a quarter of a century, thanks to the skill and determination of our business attorneys who are dedicated to the welfare of our clients’ enterprises. Let us help you fulfill your dreams by being the law firm you call on when you start you own business or when your business needs assistance.
Michigan Legal Solutions
28345 Beck Road, Suite 401
Wixom, MI 48393
Phone: (248) 869-0030
Fax: (248) 869-0039