There are an enormous amount of issues to consider prior to forming your business. Whether you wish to be a sole proprietor, or form a partnership, corporation, or other legal entity, you should contact our firm in order to full explain all of your options.
Some important topics to consider when forming a business are:
- Selection of the name: Selecting the proper name is important for the success of the business The members need to make sure that the corporate name isn’t already being used by another business. Also, the name should allow for maximum exposure and profitability for the entity.
- Choice of directors: Every corporation needs to appoint a board of directors who will make important decisions on behalf of the company. There can be disputes over who is appointed as a director. Disputes can also involve the rights and duties of directors.
- Choice of registered agent: The corporation will also need to appoint a registered agent who can sign for the company on important documents. This person should be selected carefully in order to ensure that they don’t abandon their role down the road.
- Issues with the Articles of Incorporation: The articles of incorporation state important goals and information related to the corporation. This needs to be carefully drafted and is usually written by an experienced business lawyer. Any disputes should be resolved before the articles are finalized in writing.
- Meetings: The organization needs to decide how often meetings should occur, and how many members need to be present for a gathering to be considered a “meeting”. Also, the organization needs to set forth rules for “special meetings”, which are held for important matters such as voting.
- Securities issues: The issuance of stock is perhaps the single most contentious aspect of incorporation. Disputes can arise over the member’s rights in stock. Also, there may be disagreements in terms of how stocks are classified, such as preferred, common, etc.
- There can be many other types of disputes depending on the nature of the corporation. Many of these disputes can be avoided through proper business planning , Disputes can sometimes be resolved through alternative measures like mediation. However, in serious cases a lawsuit may become necessary, especially where a party’s legal rights have been violated.
Also, when forming your business entity, our firm can help you prepare and draft various business contracts. Please click here to learn about how we can assist you with agreements and contracts.
If you are interested in having our law firm protecting your vital interests in a dispute, please feel free to fill out our contact form.
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