Why is incorporating your business and drafting a shareholder, partnership or operating agreement an important aspect of becoming a financially wisebusiness woman?
As a business and tax attorney, I work with a lot of incredibly talented, intelligent and strong women business owners. Many of these women have started businesses with one or more partners who are family members, friends, business colleagues or third-party investors. Formalizing these relationships by forming a corporation, partnership or limited liability company is an important way to protect any business owner from personal liability. Additionally, carefully crafting a shareholder, partnership or operating agreement to govern the new entity gives the financially wise business woman a clear guideline for dealing with important business issues such as raising more money for her business, what to do when a partner wants to transfer his or her interest in the company and what decisions she controls versus what decisions her partners have input on.
What does being a Financially Wise Woman mean to you?
I think what I’ve learned from my clients is that being a financially wise woman means being proactive and forward-thinking so you aren’t caught off guard down the road when issues arise that you could have headed off with better planning. I also think it means accepting that you can be great friends or colleagues with someone AND still protect your interests as a business owner by drafting documents that spell out the rights, roles and obligations of all parties involved in the business. I know it may be a stereotype, but generally speaking women are great communicators and we can really use that to our advantage to reach a consensus on how a business partnership will function and hopefully prosper.
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Katy Spillers | Attorney at Law | Biography
D: 310.201.7576 | F: 310.201.2347 | KSpillers@greenbergglusker.com
Katy Spillers and Greenberg Glusker are not affiliated with LPL Financial or Perennial Financial. LPL Financial and Perennial Financial do not provide Legal advice or services.