In an article published on her website, lawyer Cesery L. Bullard married corporate agreements with plans for companies. These documents are mainly used for LLCs and are only needed in certain states like California and New York. «The main advantage of a company agreement. is clear,» said Marcus Harjani, co-founder of FameMoose. «The agreement distills understanding of the work between these LLC owners and provides more clarity by anticipating the common problems that arise when operating a business and. `a concise and explicit agreement to resolve these issues in writing.` While you don`t have to submit your company agreement to a government office like the Minister of Foreign Affairs, you should have it certified notarized and then keep it in a safe place. The company agreement should remain confidential, but each member should be given a copy. Many startups opt for the creation of limited liability companies, often without considering in detail the many possible effects.
One way to describe the common problems of entrepreneurs who have created LLCs may be: «An eruption of unintended consequences.» Among the positive points of LLCs are flexibility (an LLC is a creature of the contract, and the specific agreements in this contract govern the rights of the parties), simple creation, simple basic structure, simple management and apparent simplicity of tax matters, as they are usually not taken into account (unless they choose another tax treatment) either for tax purposes (Llc with a member) or as companies Of people (LLC with several members) are taxed with the pass-through treatment of profits and losses. But that`s where the simplicity can stop. What classes of interest in membership do you and your co-founders have? Interests that do not have the right to vote? Common interests? Privileged interests? Changeable interests? Profit interest? LLCs can have a number of capital structures, so this section is determined based on how you and your co-founders decided to structure your startup. «At least the company agreement must be in writing, each member must sign it, [and] the interests, contributions and responsibilities of the members must be well defined and the management structure explained,» Bullard wrote. «Companies registered as LLCs typically need to establish a company agreement,» added Deborah Sweeney, CEO of MyCorporation. Even if your state doesn`t require anyone, she said, a written agreement allows you to manage your LLC the way you want. . . .