Starting a new company is a very exciting venture. However, it can also be very overwhelming and confusing. One important factor to consider is what types of contracts you will need to enter into in order for the business to flow smoothly and legally. It is in your best interest to consult with an experienced contract lawyer in Los Angeles to help you make an informed decision and appropriate action.
Partnership Agreements
A partnership agreement is a written document that provides how the rules and details for how a partnership (a group of two or more individuals or entities operating a business) should run. Under California law, a partnership can also be formed in the absence of a written agreement through the actions of the parties. However, there is much danger in running a partnership without a written agreement.
Licensing Agreements
A licensing agreement is an agreement between the owner of a patent, brand, or trademark, and another party who wants to use the patent or the trademarked good or service. The license grants permission to the licensee and provides stipulations that the licensee must honor. One of these stipulations is usually a financial arrangement to pay for the use of the license.
Employment Contracts
Under the umbrella of employment agreements, there are essentially two different types. First, there are actual employment agreements that state the terms of employment for an employee of a business. Additionally, there are independent contractor agreements, which govern the terms of a job or project for which a business engages a non-employee independent contractor.
Operating Agreements
Operating agreements are specific to limited liability companies (LLCs). Specifically, operating agreements structure the internal financial and functional operations of the LLC. A standard operating agreement should include the following:
- Creation and organization of the company;
- Management and voting
- Capital contributions;
- Distributions;
- Membership changes and transfer of interests; and
- Dissolution.
Following any major company event, such as losing a member, the agreement should be reviewed and updates should be considered.
Client Service Contracts
Prior to a client relationship being formed between your company and a potential client, you should consider entering into a client service agreement with that client. This is an important document that defines the business relationship and reduces potential uncertainty between your business and its clients. Some of the important terms that should be included within such an agreement includes:
- Services defined;
- Payment terms;
- Dispute handling;
- Termination
Purchase and Sale Agreements
Purchase and sale agreements legally transfer the ownership of a business, or assets of the business, to a new owner. An appropriate agreement should provide all relevant details of the exchange, including purchase price, representations and warranties, affirmative covenants, indemnification provisions, transition matters, and dispute resolution provisions.
Contact Us Today
If you have questions or need professional assistance is developing business contracts for your company, contact the highly reputable and experienced contract attorney in Los Angeles, Afshin Hakim of Hakim Law Group, today to schedule an appointment at 310.993.2203 or visit www.HakimLawGroup.com for further information.
