When forming a business, deciding on the best legal structure is critical. At Levine Law, LLC. serving Long Island, New York City and the Tri-State area”, we will discuss your options with you and guide you through the process. Depending upon the legal structure you choose – most commonly a corporation or limited liability company, Levine Law will help form your entity and draft the necessary documents to accomplish your goals.
When forming a corporation, most states require that both a Certificate of Incorporation and By-laws [1] be drafted to govern the affairs of the corporation. Although not legally required, the shareholders of a corporation commonly desire that a Shareholders’ Agreement be drafted to address the rights and responsibilities of the shareholders to each other. In tandem with the By-laws, a Shareholders’ Agreement typically governs issues such as what happens if a shareholder wants to sell his or her shares and what happens upon the death or disability of a shareholder.
When forming a limited liability company, applicable state laws require the filing of Articles of Organization and the drafting of an Operating Agreement [2]. The Operating Agreement is typically a hybrid of a corporation’s By-laws and Shareholders’ Agreement and governs the business affairs of the company and the rights and responsibilities of the members to each other.
Despite what many think, each relationship among owners is often unique. As a result, using a standard template found in a company kit or obtained from a business formation company will rarely accomplish your objectives or satisfy the criteria of your lenders. At Levine Law, we will meet with you to discuss the issues most frequently addressed in organizational documents and will draft documents customized to your particular needs. It goes without saying that using an experienced firm like Levine Law, LLC that has drafted hundreds of these documents should be a top priority in starting your business off on the right foot. So whether you are looking to start a business or you have an existing business that is undergoing changes, please call Levine Law at (516) 921-6700 for a consultation.
