One of the services I provide is helping with business organization and structure. This generally occurs when we are first forming your business but also when you bring on new members or shareholders to an existing business or acquire large assets or are otherwise restructuring.
A few examples of this include: whether your LLC is member-managed or manager-managed, what officers your entity has and what their roles are, each parties ownership percentage and management rights, whether real estate or other large assets will be owned by a separate entity, how contributions from owners will be classified and how they are paid back, etc. These are general examples and each business is unique and will likely include other specific considerations.
Often the main document we will be working with will be an operating agreement for an LLC or bylaws for a corporation. I will have other posts that dive farther into these documents but they typically outline all information about the owners, rights and responsibility, etc. Often we’ll include sections on how members can transfer or sell their ownership and what to do in case of a deadlock. I also often draft documents akin to a stock-transfer restriction agreement which indicates how owners can transfer their interest in a company. The idea is generally that the owners staying with the company have rights to by the selling owner’s interest before it goes to a third party. This documents are not required to be filed with the Secretary of State so you can retain some privacy in these areas.
I can also help with business organization and structure by drafting employment agreements, non-compete agreements, non-solicitation agreements, non-disclosure agreements, commercial lease agreements (if one entity you own is leasing back real estate or equipment to another), promissory notes (if an owner is lending the company funds), etc. Again, each business is unique and will often require their own specific legal work or documents.