In this day of internet forms and advice I find that many of my clients get much of what they need for a relatively small price online, but the part they do not get can really bite them. Some of the most contentious, and expensive, litigation I have had in my practice concern a business started with a $40 internet form and a filing with the Secretary of State, and nothing else. What could possibly go wrong! Unfortunately, lots of things.
The most common problem I see is an internet form that leaves a “fill in the blank” space for what each of the parties expects the other to be doing to advance the interests of the business. I often see little, or even nothing, outlining what each of the business owners will be doing to earn their way. I even see things like, “duties to be determined”. If your business fails (many or even most of them do) this may not be a problem. But if it really takes off, what then? And if only one person feels obligated to do the work of the company, and the other person does not, is the non-working person entitled to half the profits? Probably.
Have a lawyer look over your documents and advise you how to avoid many of the most common pitfalls. You can never anticipate all of them, but many are foreseeable.
And while you are at it, be sure to arrange for a tax advisor, a bookkeeper, and an insurance agent. Feed and nurture your business. Give it a chance to grow.
We offer a reduced fee initial consultation for new clients. Call or email us and we will be happy to meet with you to go over your legal needs.