Formation

At a bare minimum, a business must be structured to comply with relevant laws and regulations, which can be daunting for the most sophisticated entrepreneurs.  On a higher plane, effective management is crucial for a thriving business, which requires a tactful balance of clarity and flexibility at every level of an organization.  Beyond facilitating compliant/efficient operations, proper governance can prepare a business for imminent events such as financing, expansion, sales/acquisitions, or business succession.

Business owners shouldn’t have to be lawyers, but the regulatory complexity of many industries (i.e., healthcare) can divert attention from the lifeblood of a business.  Even worse, some well-intended business owners don’t invest in compliance until it is too late.  Legal counsel doesn’t need to be constantly involved in the business (though everyone loves the company of lawyers!), but a properly balanced relationship can make heavy burdens light.

A business does not become valuable by accident. And yet, despite their otherwise immense dedication, too many business owners “sell the business short” when they lack a formal succession plan. When a transition occurs (i.e., retirement, death, sale, etc.) an effective succession plan provides stability, which in turn will maximize the value of the business.

Circumstances change, and even the most robust business may need to evolve and adapt.  A business reorganization can vary in depth, ranging from a mere change in formality to a transformation that creates a seemingly new entity.

State filings require a named manager, whose identity is available to the public, which is troublesome for business owners who want maintain their privacy while they are actively involved in the business.  A management trust can serve as the named manager for state filings, while allowing the business owner to serve as trustee, and thus act as the business’ effective manager.  This can be particularly helpful in the realm of business acquisitions.