Starting as a Limited Liability Company is a choice to be made when you begin your business. It is important to have an attorney and a qualified accountant to give input to help you determine if an LLC is the right way to begin. An attorney can create the Articles of Organization as well as the Operating Agreement and minutes to authenticate your company’s actions. Succession planning may also be put into the place within your documents to allow for transition to new owners if you become incapacitated or deceased. Payments could be arranged to go right into a trust to attempt to avoid probate upon death.
It is important to involve the guidance of an attorney to help you incorporate your company or to set up an LLC (Limited Liability Company) properly. Not only is it important to be registered properly with the state, it is just as important to have the necessary legal paperwork set up for your company or corporation. You should have minutes and bylaws if you are a corporation, and you should have minutes and an operating agreement if you are an LLC. Such documents provide the framework for your company or corporation.
If you conduct business involving financing or real estate, the banks will want a copy of your documents and authorization from your company to conduct business. It is important to involve the expertise of an attorney when keeping up to date on all these documents. If is just as important to provide for succession planning to provide for the inner workings of your company if you become disabled or deceased. Such planning can help you avoid probate if your business is to be sold, or provide the roadmap for the next owner to take over in your place. To provide for your company to continue after you are gone, a buy/sell agreement could be drafted to provide the necessary legal framework for the future owner as well as compensation for you as you retire.
At Pruitt Law Offices S.C. we are trusted advocates for small to midsize businesses throughout the surrounding Racine area. Our firm maintains a focus on business law, both transactions and litigating, in order to provide a depth of experience and knowledge in areas where our clients need assistance.
We have the flexibility to provide an exceptional level of custom-tailored service at reasonable costs. We believe that a close relationship with clients is essential for success, so we maintain open lines of communication.
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Limited Liability Company (LLC)
It is important to consult with an attorney to help you choose the right entity. We can work with your CPA to maximize tax exemptions. Becoming a corporation is more than just choosing a name and filing with the State of Wisconsin to become a legal entity. Set it up correctly from the beginning with your Articles of Incorporation, Bylaws, and minutes to reflect the choices that are right for your new company. Succession planning can be integrated into your Bylaws to allow for the next generation to come in and take over, or you can name a person or the trustee of your revocable trust to come in and sell your company if you become incapacitated or deceased.
An employer identification number is necessary for your new entity. Just like people having a social security numbers, your new business needs its own number. Lawyers can aid in obtaining an employer identification number for your new LLC or corporation. Getting advice from your attorney or accountant will help you determine how to fill out the application properly. This application can be included in the cost of setting up your new business with the attorney.
When a business is sold, it can be a simple and relatively straightforward transaction or it can be a highly complex arrangement. Any time you sell your business you should consult your attorney, accountant and insurance agent. All three can have valuable input into how to set up your sale or purchase. The attorney can draft the necessary documents to authenticate the sale of your business in coordination with your corporate bylaws or company operating agreement.
Buy and Sell Agreements
Before you sign or create a contract related to your business operations you should thoroughly review the contract on your own and make a list about issues, concerns and questions. You should provide the contract to your attorney for review along with your list. A lawyer can alert you to concerns to be aware of or provide suggested language to cure the areas of concern.