What questions should I ask myself when structuring my incorporated company?
We’ve created a list of questions that you should consider when you are structuring your incorporated company. Here it is:
- Who are your business partners?
- What are everyone’s rights and restrictions?
- What kind of decisions can be made by one of the principals of the company / a majority / unanimity?
- How much money is everyone putting in?
- How do the principals of the company reach agreement on expenses that will be borne by the company?
- Who has rights to the profits of the company?
- Does any one or more of the principals have a first right to profits?
- Is the Company obtaining financing, and if so, what kind of security will be pledged?
- What happens to the shares if someone dies or becomes permanently incapacitated?
- What happens if someone wants to get out (exit strategies)?