Having high-quality formation documents is the most important component of forming a company, and our competition is silent on the issue.
As a law firm, we’ve seen it all: We’ve seen sons beat up fathers, daughters fight with mothers, cousins lock each other out of businesses, best friends stop talking to each other.
A partnership dispute can be worse than a bad divorce.
It can be emotionally draining, outrageously costly, and can spell the death of an otherwise successful enterprise.
Great Formation Documents are Critical to Your Success
In every single partnership dispute we’ve been hired to assist with, we’ve seen one thing over and over again: The worst disputes and the most expensive legal fees go to that company with the worst formation documents.
It turns out, great formation documents (i.e. an Operating Agreement for a LLC, or Bylaws with a good Shareholder Agreement or Buy-Sell Agreement for a Corporation) greatly impact how partnership disputes are resolved.
But, great formation documents don’t just help reduce the change and cost of a partnership dispute. Great formation documents help companies:
- Survive a tax audit
- Maximize asset protection by reducing the chance a plaintiff can successfully obtain a charging order and foreclose on its assets
- Maximize liability protection by reducing the chance a plaintiff can successful argue to “pierce the corporate veil” and hold you personally liable
- Eliminate the chances of an unwanted owner becoming a partner (i.e. through divorce, operation of law, or death/incapacity of a partner)
- Minimize the chance of a costly partnership dispute
- And much more
What Makes for Great Formation Documents?
The same document can be truly outstanding for one business, and outrageously dangerous for another business. It’s not simply a question of whether a formation document is “well written.” You need to consider it in the context of the company, and how it is setup, taxed and run.
Let’s consider an Operating Agreement for a LLC. It needs to be well-written, complete, without ambiguities (because ambiguities lead to fights or exposures to the business), and legally relevant to what the business is doing.
More than that, however, the Operating Agreement must meet the specific needs of your business. Otherwise, it’s not helpful at all. Specifically, a great Operating Agreement needs to ask (and address) the following questions:
- What are the latest state and tax laws as they relate to your business?
- What is your intended tax status (i.e. Disregarded, Partnership, S-Corp or C-Corp)?
- How should dissociating events (i.e. death, incapacity, voluntary withdrawal, etc) be addressed?
- What are the specific buyout terms and valuation for dissociating events?
- How should important issues be addressed, such as dispute resolution, tie-breaker, quorum, confidentiality, non-compete and devotion?
- How is the LLC managed?
- Do we have community-property state issues, in case of divorce?
- Plus many other questions …
This is why L4SB wrote an expert system we call the Couture Operating Agreement, free to clients forming LLC’s through L4SB. It provides a high-quality Operating Agreement for all types of LLC’s, with all types needs regarding tax status, ownership, management, voting, dissociation, dispute resolution and more.
L4SB focuses on providing the very best documents, whether formation documents, contracts, demand letters and more.
Where is Our Competition on this Important Issue?
That’s because our “non-legal competition” simply cannot worry about these issues. Success to them means “submitting the paperwork without it being rejected by the State.” Nothing more. Success to us means you have setup a company that meets your long-term needs and minimizes long-term costly problems.
Instituting high-quality formation documents is the most important component of forming a company, and our competition is silent on the issue. Sure, almost everyone purports to give you a “100% Satisfaction Guarantee,” but all of them are limited by some period of time — 30 days, 90 days. But, you may not be sued or in a partnership dispute for years, and by then, it will be too late.
Don’t risk a long-term problem by forming your company with anyone else. Only L4SB provides the very best formation documents — only custom documents drafted by attorneys for your specific needs are better.