In general, all Florida business entities and the relationships of their owners are regulated by state law (see FL corporations act; see FL LLC act) these laws serve as the default rules that apply to all such entities unless otherwise agreed to by the shareholders or members. In order to override those default rules, which typically are not most desirable for companies with multiple owners, the parties should enter into an operating agreement, buy-sell agreement or other form of shareholders agreement. These forms of agreements generally address:
- management of the company
- tax planning
- exit strategy
- restrictive covenants
- other rights or responsibilities of ownership specific to the industry in which the company operates.
Often without such agreements, the shareholders or members of company can find themselves in uncomfortable situations because of their failure to provide for common circumstances when entering into business ventures with others.