As your Estate and Succession Planning Attorney with business planning expertise, we recognize the critical importance of establishing proper legal agreements when launching a new business. Unfortunately, many new business owners either postpone or overlook the creation of these vital documents, often unaware of which agreements are necessary.
Outlined below are four essential legal agreements that every business should have. If your business lacks any of these foundational documents, or if you wish to have your existing agreements reviewed, reach out to us, your trusted Estate and Succession Planning Attorney with business planning expertise, without delay.
- Business Entity Agreements: One of the initial decisions in launching a business is determining its legal structure. To minimize personal liability and optimize tax benefits, we typically advise clients to structure their business as a limited liability company (LLC) or a corporation. In either case, it is crucial to draft the appropriate business entity agreement—operating agreement for an LLC and corporate bylaws for a corporation. These documents define the rights and responsibilities of the owners, whether referred to as “members” for an LLC or “shareholders” for a corporation. They govern not only daily operations but also address scenarios such as an owner’s death, incapacity, or retirement, as well as the company’s potential failure. Such agreements are vital for managing business communications and resolving disputes. Consulting with an experienced business lawyer is essential for crafting these agreements to ensure they cover all critical aspects.
- Employment and Independent Contractor Agreements: If you plan to hire employees or engage independent contractors, comprehensive employment and independent contractor agreements are necessary. It is essential for every individual working for your business, regardless of their familiarity, to sign these agreements. Clearly outlining terms, conditions, success metrics, and time frames in these agreements helps establish expectations for both the team member and the business. Additionally, these agreements should incorporate provisions protecting your intellectual property (IP). Safeguarding your IP from being taken by departing employees or contractors is crucial, making well-drafted agreements imperative. Working with an experienced attorney ensures that your agreements are properly prepared to protect your business assets.
- Intellectual Property Assignment Agreements: Securing ownership of all intellectual property (IP) introduced by founders and created by owners, employees, and contractors is vital for a business. Intellectual property assignment agreements, integrated into employment and independent contractor agreements, transfer ownership rights of all IP assets—patents, trademarks, and copyrights—from individuals to the company. These agreements are especially critical when collaborating with independent contractors, as they generally retain ownership rights to their work unless specified otherwise. Our role as your Estate and Succession Planning Attorney with business planning expertise involves assisting in the creation of IP assignment agreements for everyone involved in your business, ensuring comprehensive ownership and control of these valuable assets.
- Sales and Service Agreements: Client service agreements and product purchase agreements play a crucial role in the sales process for businesses. Integrating these agreements seamlessly into your sales process enhances customer trust, confidence in your products and services, and ultimately boosts your bottom line. Whether your business deals in products, professional services, or both, having legal agreements that clearly define the rights and responsibilities of both your business and customers is essential. These agreements cover key elements such as price, payment terms, tax responsibilities, warranties, and liability limitations. Collaborating with us ensures that your agreements align with your overall sales process, contributing to a smooth and trustworthy client experience.
In conclusion, the creation and maintenance of these vital legal agreements should not be entrusted to generic online documents. Seeking guidance from an experienced attorney like us is crucial to ensure that these documents are appropriately crafted and maintained. Whether you require the development of new agreements or a review of existing ones, even those drafted by another attorney, we, as your trusted Estate and Succession Planning Attorney with business planning expertise, are here to support you. Our commitment is not only to help create clear and concise agreements but also to implement an agreement process that facilitates effective navigation through inevitable changes in every relationship, managing conflict in a healthy and productive manner. Contact us today to learn more.
This article is presented by Michelle Bell, an expert in estate planning and business succession services. Our office provides comprehensive legal support for businesses, assisting you in making informed decisions throughout your entrepreneurial journey and in planning for future contingencies. We also offer a specialized session where we review your business’s legal structures. To arrange this consultation, please click the following link: https://calendly.com/mcblawpllc/30min.
The information in this article is intended purely for educational and informational use and should not be considered as advice on ERISA, tax, legal, or investment matters. For advice specifically tailored to your unique situation, such advice should be sought independently from this educational content.