Maryland | Business Law
Legal Question
starting a buissness with a partner
how do you leagally protect your self from partners taking over a buissness that is being equally created.
Share This On:
Legal Answer
|
Read More Answered By: Steven Rinaldi |
Re: starting a buissness with a partner If you a creating a Limited Liability Company, then you need a well written Operating Agreement that addresses issues such as a super voting majority requirement to undertake or approve major transactions. I usually have a list of 30 to 40 major transactions needing a super majortity vote. You also need buy out provisions in the event that any dispute over a major transaction does not get resolved. In addition, you need buy sell provisions for death or disability of one of the partners.
If you are creating a corporation, you have the same concerns, only they are addressed through a shareholders agreement.
Most importantly, please create the entity in Delaware not Maryland! If you get into a fight with your partner, the Delaware Court of Chancery is probably more likely to honor alternative means of resolving disputes than is a Maryland Court. Even if not, the Delaware Court of Chancery decides almost all of its cases in 8 weeks. The waiting period in Maryland Court is much longer. If you ever get into a dispute with your partners, you can resolve it more inexpensively through a Delaware entity.
|
Share This On:
Top Attorneys in MD
Wagshal and Sher
Bethesda, MD
Questions Answered: 3886
Last Question Aswered on: 2012-05-25
Chung & Press, P.C.
Mclean, VA
Questions Answered: 2361
Last Question Aswered on: 2012-05-21
Law Offices of G. Joseph Holthaus
Ellicott City, MD
Questions Answered: 1946
Last Question Aswered on: 2012-05-17
Attorney at Law
Atlanta, GA
Questions Answered: 1010
Last Question Aswered on: 2012-05-13
Paula McGill Attorney at Law
Bethesda, MD
Questions Answered: 577
Last Question Aswered on: 2012-04-11
Arden Law Firm
Crownsville, MD
Questions Answered: 428
Last Question Aswered on: 2012-05-23
Joseph, Greenwald & Laake, P.A.
Greenbelt, MD
Questions Answered: 351
Last Question Aswered on: 2011-12-07
Alan S. Albin, Attorney at Law
Morristown, NJ
Questions Answered: 351
Last Question Aswered on: 2005-05-13
Law Office of Denese Dominguez, LLC
Severn, MD
Questions Answered: 128
Last Question Aswered on: 2010-04-17
Uptown Law, LLC
Rockville, MD
Questions Answered: 124
Last Question Aswered on: 2008-05-15
Search Questions and Answers