If you are preparing to start a new business, your to-do list is likely consuming a lot of energy.
However, if your list does not include: “hire an attorney,” we highly recommend you add this critically important task.
As Rick DuVall, Partner at McCabe and Mack LLP, recently pointed out, obtaining advice from an experienced lawyer at the outset can protect your relationships and business, safeguard your upcoming investment of time and energy, and support greater peace of mind for years to come.
Consider the following:
- Have you gotten solid legal advice on what the best form of entity would be for your new business? Do you have the fully executed documentation needed to register your LLC, corporation, partnership, or DBA?
- Have you considered what will happen when you are ready to move on from this company, one of your partners becomes disengaged or relocates, or you decide you need to move on? Do you have a clear shareholder agreement which includes exit ramps while protecting the business? How will the business protect itself from those likely events?
- Does your shareholders agreement or operating agreement describe how money is allocated, invested, and spent, and who makes those decisions?
- Has a corporate attorney reviewed your client/customer contracts and/or employee contracts?
- Have you identified who is authorized to make decisions on behalf of your business? Has this been clearly communicated and documented?
- Have you identified buyout obligations or rights in a succession plan for your company, in the event of long-term illness or death?
We all know that assembling the right team of people will be a cornerstone of success for a new business owner. Without question, that team should include a corporate attorney. Making investments and alliances governed by properly crafted agreements will prevent stress and litigation expenses down the road.
We are here to help. Visit our website at mccm.com or call 845.486.6800 to schedule a consultation with one of our lawyers today.