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Can I write my own shareholder agreement?

A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, you should check with your state if you are interested in starting a Limited Liability Company. Owners of an LLC are called members.

Does an LLC have shareholders or members?

Can I write my own shareholders agreement? You can but you probably shouldnt. It is highly advisable to involve legal professionals experienced in corporate law.

Does an LLC have a shareholder agreement?

Any company whether organized as an LLC, Corporation, or partnership with more than one shareholder, especially if they are actively involved in the business, should have a shareholder agreement.

What does a shareholder agreement include?

An agreement can provide for many eventualities including the financing of the company, the management of the company, the dividend policy, the procedure to be followed on a transfer of shares, deadlock situations and valuation of the shares.

What are the pitfalls of shareholder agreement?

Mistake 1: Not having a Shareholders Agreement in place. Mistake 2: Not outlining how transfer, ownership or dissolution of shares will be handled. Mistake 3: Not outlining what each party is responsible for. Mistake 4: Not outlining how voting will take place and how issues will be resolved.