The Rights and Obligations of a Business Ownership
When it comes to building your own company, nothing is really more important than being able to identify and define the rights and duties of the company owner. This can be done in two ways: a shareholder agreement designed for corporations and an operating agreement best used for partnerships and LLCs.
Those two documents are made in order to hand out business owners like you the control and flexibility on the different components of the business operation, including but not limited to the member and/or shareholder rights with respect to selling a stake in the company, figuring out what will happen to the owner’s interest in the company in the event that he or she becomes incapacitated, the proper allocation of profits and losses, the imposition of procedures for the resolution of disputes, and the general management of the company.
As a prospective business or company owner, you have to understand that there are virtually an infinite number of roles, regulations, obligations, as well as entitlements that need to be defined in the shareholder or operating agreement. But don’t worry… we at Jurado & Farshchian, P.L. will be here to analyze everything for you and we can also create the document for you so as not to miss out on anything. Remember that everything has to be considered, especially your company’s distinctive circumstances, including future plans of improvement.