As a small business owner, you have a lot on your plate. From managing the day-to-day operations to keeping your other eye attuned to the big picture, it can be easy to let seemingly less-pressing tasks slide.
Often legal documents fall into this category of not being an immediate business need.
We urge you to consider otherwise.
Legal documents, including a shareholder’s agreement, can prevent serious issues from escalating down the road. Just as prevention is the best medicine for your health, so too is it for your business.
So while partnering with an attorney to complete important documents may not seem urgent today, failure to do so could result in a serious crisis tomorrow. At a minimum, the efforts it will take to resolve (often preventable) legal issues will be expensive and time-consuming. At worst, they could completely derail your business.
Hop to it…today
One important document unique to your specific business is your shareholder’s agreement. Often shareholder’s agreements are discussed in the context of business partnerships, but even solopreneurs should have a shareholder’s agreement prepared so they are well-positioned for growth and have a plan documented for what would happen to their business in the event of a life-threatening emergency or death.
Shareholder’s agreements put in writing each partner’s contractual rights, responsibilities, and obligations as it pertains to the partnership. These documents are completely customizable to your business, but often include areas such as:
- How company decisions will be made
- What dispute resolution methods will be used
- Inclusion of each partner’s capital contributions to the business and ownership interests
- How profits and losses will be distributed
- What will happen if the business is to be dissolved or shareholders wish to exit the partnership
For more about what to include in a partnership agreement, be sure to read this post and then contact us at Silverberg|Brito, PLLC for assistance completing this and other important legal documents for your Florida business.