Managing a business can be simple or complex, depending on its structure and the types of goods and services offered. No matter how easy or hard managing a business may be, there are many legal issues to consider.
There are various business structures, so you must understand how each structure impacts a business’s financial and tax liability.
Additionally, each business structure has many different advantages and disadvantages, so it is important to discuss with a business attorney to decide which structure is the best fit for the business’ needs. The following are the various types of business structures in Florida:
Limited Liability Companies
Buy-Sell (Buyout) Agreement
After creating a business, owners should consider the business’s ultimate future goal. A Buy-Sell (Buyout) Agreement is an agreement that protects the business in the event one of the owners leaves the business. The Agreement can provide details of the purchase of that owners’ shares by the remaining owners. This type of agreement exists in family-owned businesses comprised of multiple generations of business owners.
This type of Agreement also protects the business from an owner’s bankruptcy. For example, the business could be protected from asset liquidation to pay for the debts of a bankrupt owner. In that situation, the bankrupt owner could sell their shares to the other owners and decide how the use of the remaining profits for paying off its debts.
If you are a business owner and need assistance in creating a type of business or an agreement, please contact Kimberly M. Soto at 321.972.2279 so she can further advise you.