The statutes are also different from an enterprise agreement. The statutes are important for legally establishing the company in a given state, as well as the identification of its business information and the issuance of corporate shares. Enterprise agreements are similar in function and form, because they contain similar information about the company, such as its name, purpose and how it will work, management, etc. However, they differ in that the Secretary of State must present a statute. You register the business as a separate legal entity, with the exception of the owners of the business. In most cases, LCs do not require enterprise agreements. They are also much more detailed than the statutes. “Each company must establish its statutes and submit them to the state in which it wishes to integrate,” Williams said. “This is the first step towards starting a business – the company only exists after the articles are submitted.” Regardless of the complexity of organizational articles, they must meet several essential requirements. An enterprise agreement may also contain all the other elements that you deem necessary to operate and protect the rights of the company and its owners. If you start and verify your original business agreement or status, make sure they are useful to your business and that the processes and procedures described in these documents are clear and concise.
Ensure that important issues such as compensation and the extent of management powers are exposed. Finally, make sure that every founder, member or board member has taken the time to read and understand these documents. In this way, all members of the company can better understand the structure of your business and create a more favorable environment for creating your business on the path to profitability. Depending on the type of business you have (LLC, S Corporation, C Corporation) and the state in which you live, you may legally be required to file an operating contract. For example, any LLC that operates in California, Delaware, Maine, Missouri or New York is legally required to submit an LLC enterprise agreement. Although LCs in the other 45 states are not legally required to have an enterprise agreement, it is highly recommended. Robert Gauvreau, CPA and founder of Gauvreau Associates, has provided an overview of the type of information that an enterprise agreement can cover.