Thursday, June 9, 2011

When Starting a New Business, Hope for the Best and Plan for the Worst

Before you open a business with one or more people, have an exit plan. If possible, hire an attorney to write articles and bylaws. Taking the easy way out by using online forms may lead to trouble.

At a minimum, the plan should include the following:

1. How are profits split;
2. What happens if there is a disagreement on operational matters;
3. What happens if one person wants to leave the business;
4. What happens if there is a lockout;
5. What happens if one person wants to dissolve the company;
6. What is necessary to initiate a lawsuit against a third party or an owner; and
7. What happens if an owner dies or gets divorced.

1 comment:

startingbusiness said...

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