San Antonio Business Lawyers
that Aid with Company Agreements
Helping Business Owners Streamline Business Protocols
As a business owner, it’s important you implement clear guidelines and governing how your company operates. Depending on your entity structure, the official documents that lay out these guidelines are generally a company agreement or operating agreement. Essentially, this document is a “rulebook” directing those who own an interest in and/or are in involved in running the business.
So why exactly do you need a company or operating agreement? Primarily because the agreement outlines the financial and functional decisions of a business, as well as other rules and regulations. The purpose of the document is to govern the internal operations of the business in a way that suits the specific needs of the business owners, setting out the financial and working relations among the business owners and between the owners and those actually running the company.
Company and operating agreements vary greatly depending on the needs of the business, but will generally cover items related to the following:
- How much say each owner has in the company, or voting power;
- Profit distribution and how payments are made to shareholders or members;
- How profits and losses are allocated;
- What happens if the business has to be dissolved or liquidated; and
- How an ownership interest can be sold or transferred.
Setting Up a Company and Operating Agreement for Your Business
Generally speaking, company and operating agreements are recommended for all business types in most cases. Many companies manage without one for a period of time, only to encounter serious issues when problems arise for which there is no controlling rule. When possible, companies should develop and implement their company or operating agreement right from the very start, and if that’s not possible, sooner is almost always better than later.
At Clausewitz Law Firm, our team specializes in helping new and growing companies ensure all legal aspects of their business are covered. We will meet with you to discuss how you want your company to operate, and then we will prepare your company agreement for you. Not only do we help save you time, we ensure the agreement prepared for your business includes and covers all the important issues a sound company or operating agreement should.
To speak with one of our San Antonio business lawyers about creating a company or operating agreement for your business, please contact us to discuss your needs.