New Year: Time to Review Business Documents
The start of the New Year is an important time to revisit the financial and legal documents governing your business. Depending upon the type of business you currently own and the structure of your company, reviewing your business documents and updating them could involve many different tasks. At the start of 2018, you should have reviewed your partnership agreement and the partnership audit rules that took effect on January 1, 2018, as part of the Bipartisan Budget Act of 2015. Whether or not you reviewed your business documents at this same time last year, it is important to work with an experienced DuPage business law attorney to review your company’s agreements, financial materials, and legal considerations for 2019.
Reviewing and Amending a Partnership Agreement
If your business is a partnership, the New Year is a good time to review your partnership agreement and to amend it if necessary. If all partners agree to amend the partnership agreement, then an amendment is possible at any time under the Uniform Partnership Act (805 ILCS 206/) in Illinois.
There are numerous reasons that a business might need to amend its partnership agreement. For example, maybe you added a new partner or are planning to add a new partner in 2019. Or, if a partner left the business or is planning to leave, you will also need to amend the partnership agreement.
Your partnership agreement should also be amended if you are changing the structure of your business, for example, or if one of the people in your business recently changed roles. Other operational changes can also necessitate amending a partnership agreement.
Operating Agreements for LLC and New Business Considerations
If you have an LLC, you know how important an operating agreement is for running your business. Since the operating agreement essentially contains the rules for running your business, it is essential to review your operating agreement to determine whether any changes need to be made. For example, if you have added another person to the business, or if you have changed any aspects of how your business is managed, you will need to modify your operating agreement to ensure that it is up to date. Similarly, if you have made any financial changes to your business, now is the time to amend your operating agreement.
How a Legal Audit Can Help Your Business
How do you know if you need to make changes to any of the documents governing your business? One of the best ways to determine whether you need to amend a partnership agreement, an operating agreement, or any other business documents is to go through a legal audit with an experienced business law attorney.
A legal audit will ask numerous questions of your business about, for instance, the formation of your business and its continuance, taxes, contracts related to running your business (employment contracts, service contracts, and other agreements), and intellectual property matters.
If any documents need to be created or amended, a business lawyer can get your business up to date. An advocate at Farooqi & Husain Law Office can speak with you in more detail today about the benefits of a legal audit.
Contact a Business Law Attorney in DuPage County
Reviewing business documents and getting ready for 2019 is important for every business in DuPage County regardless of the size of the company and regardless of whether you conducted a business review last year. Circumstances can change, and it is important to ensure that all business documents are up to date. An experienced DuPage County business lawyer can assist you. The advocates at our firm have years of experience providing counsel to members of the Muslim community and to small business owners in the area. Contact Farooqi & Husain Law Office by calling 630-909-9114 for more information.