Entity Formation: Agreements Among Owners

Growth, new ventures and expanded ownership bases require the formation of new entities or re-structuring of existing ones. Typically clients chose between a corporation or limited liability company. We work closely with clients and their accountants to select the entity format that provides the most desirable taxation, liability protection and operational advantages. To learn more about the issues relating to choice of entity, click here to read "The Frustration of Choosing an Entity Format for Your Business".

Next, we draft a partnership, stockholders or operating agreement addressing issues that define the owners’ financial relationship, such as the percentage and type of owners equity interests; majority and minority owners’ rights, additional capital requirements, profit and loss allocations, distributions, restrictions on transfer of ownership interests, and protecting the owners, their families and the company should an owner die or become disabled. Management-related issues include who will manage the enterprise, the delineation between management and ownership authority and the longevity of management. To learn more about the issues relating to ownership agreements and entity structure, click here to read "Structure Your Business Entity to Fit Like a Well-Tailored Suit".

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Michael Stolzar has been our counsel with respect to all aspects of our formation and business. His skillful contract drafting has enabled us to grow our business with both U.S. and international clients, and protect our revenue streams…   

Richard Stone, President of Trajectory Sports & Media Group, LLC
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When senior management decided to form a new division for a new business line, Andrew Karlen, working with our accountant, helped us select a limited liability company as the most advantageous entity form. He then formed and structured the LLC it in a way that facilitates our operational and governance needs…   

Mutsumi Oishi
FRP Services & Company (America) Inc.
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