An “S” corporation or a “C” corporation? A limited liability company (LLC)? A partnership or limited partnership? You probably need to use one of these types of entities for your business, but which one and how do you set it up correctly?
These are important questions and the answers aren’t the same for everyone. And once that choice is made some very important issues must be addressed:
-If there is more than one owner, what are their respective ownership, profit-sharing, and voting rights?
-How are disputes between them solved?
-What if one of them wants to quit, bring in their spouse or child? Or dies?
-How is the value of their interest determined?
Again, the answers aren’t the same for everyone. Don’t make the mistake of using the same buy-sell agreements, shareholder agreement, LLC Operating Agreement, or partnership agreement that someone else did without making sure that all of these issues—and there are probably others—are properly considered for you own unique situation.
The work doesn’t stop there. Do you need a lease? Employment contracts or a policy manual? Licenses? Referral to an accountant for tax or payroll advice?