The first step on the way to owning a business is having a great idea. The second step is actually forming the business. Legally drawing up documents is important because it creates structure for your business arrangements, and equally as crucial, it protects you from the liabilities of your business.
However, creating your business is not a one size fits all arrangement. Corporate documents need to be carefully customized to fit each person or group of individuals’ circumstances. This customization starts at the top with the type of business being formed, such as should the business be an LLC or S Corporation, and continues on down through voting and ownership rights.
Even after the business is formed, there are certain annual obligations that must be complied with, such as annual filings and meetings. And, if you formed your business with several partners, you will want to have other documents in place to help protect you, your family, and the business, such as a buy-sell agreement. Forming a business requires a great deal of care and thought, and is more than simply “creating” the business from thin air.
You may also have a need to form a business around your activities even though you are not aware of it. Sole-proprietors and family farmers often fail to realize the necessity of putting their operations inside of a business in order to protect themselves and their business. Forming a business of the farm is especially useful for families since they can create separate businesses for both the family land and for the farming operations. This helps isolate the farmland from the liabilities of the other farming activities, and increases the likelihood that the farmland will stay in the family for at least another generation.
Goosmann Trust Law Counsel is here to help with all of the above, making sure that you have a customized legal document that fits with your needs and helping you keep on top of your annual corporate or LLC obligations.