When starting and growing a business, the first focus is often on the products or services offered, getting the right employees, or getting investors on board. However, if a business wishes to strengthen its foundations and succeed, it must also strengthen its legal foundations. Businesses can strengthen their legal foundation by creating the right governance documents.
In Boston, you can trust David R. Mullany, Esq. to assist you in creating governance documents that work for your business. Whether you are an LLC or a corporation, we can draft and review your governance documents to ensure it is clear for everyone and abide by state and federal guidelines. Businesses can also trust our experienced business lawyers to prevent internal conflict once these governance documents are enacted.
Call David R. Mullany, Esq. at (978) 549-8900 for your Free Consultation with a Boston Governance Documents attorney.
What Are Governance Documents?
Governance documents are legal documentation that defines the inner workings of a business or a company. This means that everything from how the business is run to how it is managed is written in these documents. These documents are required by law as they protect businesses and highlight the responsibilities of all parties involved.
These governance documents vary in nature depending on the type of business entity used by the business or company. Some examples of governance documents include:
- Operating Agreements
- Bylaws
- Shareholder/Partnership Agreements
- Board Resolutions and Meeting Records
Why Are Governance Documents Important for Boston Businesses?
Governance documents are more than simple documents that indicate how the business is run and established. It is a guide for your business to follow and ensure that it operates with your business interests in mind. It will also prevent disagreements that will cost your business time and money.
In Boston, where businesses thrive thanks to innovation, government support, and investment, governance documents are critical for all businesses for smooth operations, even if they are not a requirement.
Down below are other reasons why governance documents are important for all businesses:
- Provide Guidance for Owners - Governance documents can help owners understand their roles in the business, how profits are divided, and how they can get involved in the decision-making process.
- Dispute Prevention - It can establish clear procedures to prevent and resolve disputes between owners or partners.
- Legal Compliance - Depending on the business entity you selected, these documents are required by state and federal law. It must also be written with the law in mind to meet these legal requirements.
- Boosting Shareholder/Investor/Lender Confidence - Having a well-governed business will help investors, shareholders, and lenders gain confidence and trust your business.
- Future-Proofing - These documents can help owners identify how the business can be continued even if an owner passes away, departs the company, or sells their stock interest.
Must-Have Governance Documents by Entity Type
If you are in Boston, you can choose one of four business entities for your business. Each has its requirements, specifically the governance documents that must be presented to the Secretary of the Commonwealth upon registration.
Below are the must-have governance documents you must prepare based on your business entity.
Sole Proprietorship
Business Certificate/ “Doing Business As” (DBA) - If you wish to run your own business but do not want to use your name, the business certificate must indicate the name you wish to use and your name as the business owner. The name you wish to use must not be registered with another business for it to be accepted.
Licenses and Permits—If you offer professional services, you must get the appropriate licenses and permits from the regulatory board for your profession.
Partnerships
Partnership Agreements—This document highlights the partners who own the business, their responsibilities in its day-to-day operations, and decision-making. It also highlights profit-sharing agreements between partners. It is important to note that this document is not required for general partnerships.
Beneficial Ownership Information (BOI)—This document provides information about your business and the names and details of its owners. Company applicants will also be listed in this document as the ones handling the filing for the business.
DBA - If the partnership uses a different legal name for its operations, you must file a DBA for your business.
Business Registration Amendment—If your partner leaves or a new partner joins the business, the change must be reported to the Secretary of the Commonwealth through an amendment.
Limited Liability Company (LLC)
Operating Agreement—This is a legal contract that indicates how the company will be operated. It must be signed by all company members, and the rules and structure of the operations must be highlighted.
Certificate of Organization—This document acts as the official record of the business’s name and the owners’ contact information.
BOI and DBA may also be requested depending on the type of business and the business name you will use.
Corporations
Corporate Bylaws - This document highlights the corporation’s structure, including board responsibilities, voting rights, and roles.
Shareholder agreements—This document will indicate the role of the shareholders and any dispute mechanism available to resolve disputes within the corporation.
When Should You Draft, Review, and Revise Governance Documents?
Governance documents must be drafted in the founding days of the business because they will provide everyone with a guide as to how a business should be run and what roles everyone will have once it is operating. It is also ideal to have them drafted early to provide a guide for owners regarding new additions to the business, if another partner or owner leaves or transfers ownership, and if the business will be merged or sold to another.
We at David R. Mullany, Esq. recommend that these governance documents be reviewed yearly to ensure that they are up-to-date with current regulations and meet the company’s current requirements and situation. If any points in the governance documents need revising, they must be revised immediately to prevent any disagreements from the owners or management.
How David R. Mullany, Esq. Can Help Your Boston Business
At David R. Mullany, Esq., we assist solo proprietors, partners, companies, and corporations in drafting and establishing legally sound and customized governance documents that reflect their individual business goals and vision. Whether drafting brand new operating agreements and bylaws or negotiating revisions to existing Boston governance documents, we are more than happy to work with your business to get the job done.
Our Boston governance documents lawyers will also be ready to assist you in updating these documents to ensure continuous compliance with Massachusetts’ state laws. Should you need to amend your documents filed with the government, we can prepare the appropriate documents for you and assist with filing them.
Ready to Strengthen Your Business?
Do not underestimate the value of your Boston governance documents. It will be pivotal in your business’s overall success and future. You can easily get them made for your business with the help of experienced Boston-based lawyers well-versed in creating these documents.
At David R. Mullany, Esq., we can draft, review, and update these governance documents to ensure your business's success. Avail of our free consultation to get started with our legal services, and we’ll be ready to get it done!
Call David R. Mullany, Esq. at (978) 549-8900 for your Free Consultation with a Boston Governance Documents attorney.