There are also important similarities between an enterprise agreement and statutes. For example: key objective: an enterprise agreement is an internal document that describes the relationships of business owners, and the statutes legally define a business as a business with the state. Normally, the statutes specifically identify the incorporaters of your company who have started the constitution process and who are generally responsible for signing the statutes before the document is filed with the state. Once the statutes have appointed the directors, they may have to sign the statutes before they can be presented. The choice between a partnership and a group is important. It affects your access to capital, legal commitment, tax burden and management structure. The best way to think about this choice is to minimize your taxes, maximize your flexibility in raising capital and balance your appetite for legal risks. A limited liability company must be registered in the relevant jurisdiction. This will be achieved by preparing and submitting a document called «Statutes.» The statutes must comply with the court`s reporting obligations. All states have a blank copy of the statutes to download from the state`s website. The operating contract is a separate document and an agreement between the owners of LLC. The enterprise agreement sets out the conditions under which owners will interact as members of the LLC.

The operating contract is not subject to the competent court. The statutes can also refer to an important document for companies created in the UK. Uk limited companies must complete and submit an association protocol to set up the business; statutes are similar to statutes. The United Kingdom statutes describe the rights and obligations of members. They are similar to the operating contract of an LLC or the statutes of a company. In some cases, there is a situation where one person owns all the shares of the company, so a shareholders` pact would hardly be necessary. For the rest, some kind of shareholder pact is certainly a good idea, especially in small private companies, where only a small number of shareholders are involved or when a company started with an owner and is now looking for other investors. The success of a private company usually depends on who controls the business.

Unforeseen events sometimes occur, which can lead to changes in stock ownership, which in turn could have a negative impact on a company`s success. A shareholder pact with restrictions on who and how to transfer shares could be the preferred planning mode for the future of the company, while protecting shareholders. The five differences described above should help you choose between a partnership and a business for your business structure. At the end of the day, you can choose from three things: your tax bill, your preferred method of raising capital, and your appetite for legal risks.