Q: How can we structure a business arrangement that is flexible but also provides certainty that each party’s rights and obligations are clearly defined?
A: There is no “cookie cutter” formula to achieve the proper balance. There are several types of entities and scores of types of contractual provisions are utilized to provide guidance as a business transitions from ” start up” to a mature operation. The key is to have a thorough and frank discussion with the attorney guiding the formation process about all of the issues on the horizon. Experienced attorneys have worked with many business organizations with problems and have developed many effective methods of drafting contracts with provisions that deal with issues before they become problems.