Drafting Operating, Partnership and Shareholder Agreements for Pennsylvania Businesses
The process of business formation starts with the development of, as applicable, a limited liability company (LLC) operating agreement, a partnership agreement, or corporate articles of incorporation, along with any appropriate shareholder agreements.
Because these documents define the structure of the business and have important legal effects, it is essential for them to be set up properly. Improperly drafted, these may fail to have the intended effects on governance, taxation and limitation of liability. That could lead to costly disputes with members, partners or shareholders - or the IRS.
Attorney Rick Unger has more than 30 years of experience advising Pennsylvania companies during business formation , including drafting partnership and LLC agreements, articles of incorporation, bylaws, other foundational documents, and shareholder agreements. If you would like more information about how we can assist you, contact The Law Office of Rick Unger for a consultation.
Determining Whether Your Corporation Needs a Shareholder Agreement
Shareholder agreements are not legally required to form a corporation - they are private business contracts between shareholders. Their purpose is to create terms and conditions that would not typically be included in articles of incorporation or corporate bylaws. For example, most closely-held businesses remain closely held because they have shareholder agreements that restrict stock transfers outside of the existing shareholders.
Provisions in shareholder agreements can often address such items as:
- The shareholders' responsibilities to each other
- Confidential contract terms
- Agreements for the resolution of shareholder disputes, such as arbitration agreements or jurisdictional clauses
- Terms of non-competition for key employees
Shareholder, Partnership and LLC Operating Agreements and Succession Planning
An essential part of proper business organization is business succession planning - making sure there is a plan in place for an orderly transition should company leaders retire or pass away. Business succession planning can be accomplished as part of your new or amended partnership or LLC operating agreement or with a separate partnership agreement. Attorney Unger can assist you with this process.
Contact Us
The Law Office of Rick Unger can provide insightful counsel on how to protect your business interests through partnership, LLC and shareholder agreements. Contact us to schedule a consultation with business lawyer Rick Unger.
