Having a team of experienced corporate attorneys is paramount.
As the saying goes, ‘it takes a village,’ and running a business is no different. When operating a successful business, there are many moving parts and legal elements that need to be put in place to safeguard the integrity of the business and all the people who partake in it. Having a team of experienced corporate attorneys to help you navigate the changing landscape and ensuring your business is secure and up-to-date is paramount.
Corporate attorneys help business owners and entrepreneurs comply with regulations and complete complex transactions. Additionally, they protect clients from liability and legal consequences that could arise. When establishing or expanding a business a client will face challenges and risks, including risk of litigation. It is important to note that the legal landscape is constantly evolving, with small and subtle changes in the law to reflect the market and economic landscape, however, these seemingly minor changes can greatly impact a business. Keeping track of this ecosystem can be challenging for a business owner, which highlights the importance of a corporate lawyer.
There are countless benefits to working with a corporate lawyer, including creating enforceable contracts, developing employee policies, ensuring proper licensing is in place, and of course, avoiding litigation. In this article, SAADE LAW examines the importance of working with a corporate lawyer as well as diving deep into operating agreements, an important document used in Limited Liability Corporation (LLC).
Benefits of Working With a Corporate Attorney
- Creating a Business Structure
One of the first steps when creating a business is choosing the proper structure from the onset. This will set your business up for success and avoid legal issues in the future. A corporate lawyer can help you understand the tax obligations, liabilities, and set up costs to help you choose what business structure is most suited to your long-term goals.
- Protection From Liability and Legal Consequences
It is in the business owners best interest to minimize exposure to potential lawsuits or any form of litigation, the most prominent one being employment lawsuits. Corporate lawyers will help you set up legal structures in your business to ensure it is compliant for state and federal employment laws. It is important to be proactive and not wait to be in potential legal trouble to take action. Working with a corporate lawyer from the onset will save you money and potential legal issues down the road.
- Protecting Intellectual Property
Protecting intellectual property (IP) is extremely important to keep a business competitive and value-adding, especially in the age of artificial intelligence. Patents, trademarks, and copyrights can be filed to protect your businesses’ intellectual property, and a corporate lawyer can help you protect and preserve the rights to said intellectual property.
- Drafting Complex Contracts
SAADE LAW recommends all business contracts be reviewed by a corporate lawyer to ensure the business is legally safeguarded. This includes contracts for employees, customers, and vendors.
Now that the benefit of a corporate lawyer has been established, we will analyze what an operating agreement is and why it is important to have one in place in a Limited Liability Company (LLC). LLCs are the most common structure of small businesses in the United States as it gives them access to the protection from liability afforded to corporate shareholders.
An operating agreement lays the foundation and operational guidelines for a company and identifies said company, outlines ownership, and defines the duties and responsibilities of each member and managers. It also includes the company’s tax treatment, guidelines for certain procedures, and basic company and members (owners) information.
Most LLCs, including those in the state of Florida, are not required by law to file or provide proof of an operating agreement . SAADE LAW recommends that all LLCs have an operating agreement, especially in the case of multi-member LLCs. Said operating agreement can be kept confidential and updated as needed to serve as a guideline for day-to-day operations or to solve any dispute in the event that one arises.
There are several provisions in an operating agreement, but some of the most important ones include ownership and their respective capital contribution, how the LLC will make distribution to its members, management structure, and transfer or sale of membership. SAADE LAW advises all members of the LLC to discuss these provisions in depth with their attorneys or legal counsel.
The attorneys at SAADE LAW have vast knowledge in corporate law and practical business experience and are ready to counsel individuals, businesses, and entrepreneurs through the complex legal landscape. Services include structuring a business, transactions, mergers and acquisitions, dissolutions, and more. SAADE LAW is the only place you need to start, operate, and defend your business.