Sample Agreement to Form Business Entity

We reproduce a number of contracts and forms that are useful in forming and operating a business with a maximum level of asset protection. From the earliest agreement to start a company to ways to remove valuable assets from a growing business, these forms cover the most popular strategies and gives clues as to how best to structure your operation. Equipment leases and various financing arrangements are also covered, allowing you the greatest protections under the law.

The Sample Agreement to Form Business Entity might be used when two or more individuals decide to form a business entity together. Sometimes, parties will not follow through on their promises, and thus fail to contribute anything toward the cost of forming the entity, or fail to contribute any capital to the entity. Without the sharing of costs, or additional capital that was expected, formation or operation of the business may not be feasible.

While this agreement is relatively simple, it may make someone reconsider such a decision, or give the other party recourse in the event that this is the outcome. An operating agreement still should be executed after the entity is formed.

Some of these forms contain technical language and create significant legal obligations. Do not use any form without first having an attorney review the form and determine that it is suitable for the purpose for which you intend it.

The Sample Agreement to Form Business Entity includes sections on the following:

  • the type, location and purpose of the new business
  • names of partners and their promised contributions
  • binding agreement for all parties to share costs of investigating and establishing the business
  • what to do if someone later backs out of the agreement

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