Forming a Business with Others — Be Afraid, Be Very Very Afraid
Okay, so the quote from the Gina Davis character in the remake of the SciFi classic The Fly may be over the top. But when forming a business venture with others, a person should keep a healthy but critical eye out for the possibility of being screwed by one’s partners. To help prevent such a possibility, a key element in any business formation and for the ongoing relationship of its
members is having an operating agreement (if the company is an LLC) or a shareholders’ agreement (if it is a corporation).  However, too often new businesses put such important legal concerns on the back burner until … well, until the pot and its contents get burned. A recent New York appeals court decision has now highlighted how devastating such dilatoriness can be.
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