Business Entity Agreements

Communication is a basic foundation of every successful business. A well-drafted, enforceable entity agreement promotes a clear understanding between the owners and sets forth a roadmap for resolving internal conflict. An entity agreement that defines owner responsibilities and clearly delineates authority should provide further operational efficiencies for your business. A few critical issues an entity agreement might address include:

  • Profit sharing
  • Voting and management rights
  • Admittance of new owners
  • Disability or death
  • Competing business interests
  • Buyout rights

Your entity agreement may need to evolve with your business. While entity agreements are not designed for frequent change, you and your attorney should periodically review your entity plan to make sure it still accurately reflects the desires of the owners. In addition, certain major events such as the admittance of a new owner, disability, death, or the contemplated sale of your practice will often call for changes and need prompt attention.