Corporate attorneys face many types of issues in a company. There are times that these issues might be consequences of previous decisions made by the business owner and can be detrimental to the entire company. Here are a few tips that can help you avoid these common mistakes in your company:
1. Make Sure All Documents Are Always Kept In Order
It is important that all the necessary documents are prepared as soon as the company is formed. Documents such as partnership agreements, operating agreements, stock certificates, organizational consents and bylaws are often put off by many until these documents are needed. If you want to save time and money later on, prepare these documents as soon as possible. You’ll save yourself a lot of trouble.
2. Understand All Terms in The Documents You Sign
It is a common mistake to just browse through a document and sign it without truly understanding the pros and cons involved. Also, some people hesitate to ask questions about vague terms in the document before signing it. You can avoid the consequences of a wrongly signed agreement by understanding clearly the terms of each document that you sign.
3. Corporate Attorneys Must Prepare Stockholder Agreements
A wise business owner has a corporate lawyer in Orange County contracted. Have your corporate lawyer prepare a stockholder agreement for you. There are cases wherein a stock holder dies and his or her spouse inherits the shares. In these cases, if a stockholder agreement was not made beforehand, the business owners are forced to do business with the spouse. If the spouse is inexperienced with business or is not a good business partner, you will have a lot of problems.
4. Make Necessary Updates When Making Big Changes
If you are going to change the name or address of your business, make sure that you inform the secretary of state in order to have the necessary updates on what you previously registered. After you’ve notified the secretary of state, check their website and make sure that your company is updated. An updated registration will protect you from many problems.
5. Involve Your Corporate Attorney in Your Decision Making
All problems in a business can be avoided, especially if you are careful and responsible with your decision making. To help you make the right decisions and protect you from many legal problems later on, it is best to involve you corporate lawyer in Orange County every time you need to make a decision.