One of the most common mistakes we see are do-it-yourself enterprise agreements and statutory agreements. What makes do-it-yourself errors more common is the appearance of online models that can be downloaded for free or purchased by companies like LegalZoom. These companies advertise with legal documents in a “One Size fits all” model, but the reality is that most companies are not the same because owners and management have different expectations about their roles and responsibilities. The complexity of your statutes depends largely on the size of your business, but the statutes of the average company cover the following: the problem with these documents is that they are rarely complete and often the people who obtain these documents, do not read them carefully or do not understand them before signing them and moving on. It is disconcerting to see a young company with great energy and a solid business plan, but also owners who do not fully understand how their business should work. It is one of those things that remain largely unnoticed until there is a corporate dispute or a member/shareholder wants to separate. It is only when things go wrong that these documents will be removed and reviewed to determine how the dispute resolution process will work. Often there is no procedure (and if there are guidelines, it is only a standard jurisdiction and jurisdiction clause that passes you to the courts) and the method of unraveling the negative parts becomes cumbersome and costly for all concerned. Many companies that do not hire lawyers to compile these first documents end the hiring of lawyers to pursue litigation resulting from inadequacies and inconsistencies in these documents. Hiring consultants to develop these documents costs much less than long civil trials. The submission of the statutes is required by law if your company is an S or C company. But there is another important legal document that is not required by law; However, it is no less important for the smooth running of your business.
The information you include in your founding articles or founding certificates depends on your specific business and government requirements. Gauvreau stated, however, that each statutory document generally covers the following information: while the enterprise agreement is not required by the state, it is highly recommended. If there are multiple members in your LLC, the company`s enterprise contract becomes a binding contract for members. Your status may need additional information depending on the state you work in.