Temporary personal sales rep contract until LLC goes through? - WickedFire - Affiliate Marketing Forum

dchuk · 02-08-2010, 12:48 AM

I mailed in my CA LLC paperwork right after the first of the year for tax reasons and apparently CA Sec of State office is struggling right now and they haven't even cashed my check yet.

I have a few sales people ready to do sales on a product that's ready to sell, the only problem is that we nor the sales reps want to move forward without a contract. From my limited legal knowledge, I believe signing a contract between my currently non-existent LLC and a sales rep would actually be invalid and could create a legal mess down the road if something were to ever happen.

So in trying to figure out a temporary solution in order to get sales started asap, I've been thinking about signing a contract between myself and the reps until I receive the LLC papers, and then signing a new contract between the LLC and the reps once the LLC is official, which would also include the necessary wording to transfer over any existing sales to the relationship of my company and the reps instead of myself and reps.

Is that risky enough to be stupid? Has anyone run into a situation like this? Advice?

Deliguy · 02-08-2010, 01:12 AM

i believe as long as its written you can postdate a contract.

I'd double check that if I were you, but if true then they would get their assurance of a contract under the company and you would get the goahead for them to start working but during that time they wouldn't be covered by the contract under the company.

supersundas · 02-08-2010, 01:44 AM

What service did you use to incorporate?

dchuk · 02-08-2010, 02:17 AM

@deli - that seems like a potential option, I'll check out that

@super - The company is owned by myself and a friend, who majored in entrepreneurial studies so he's done this in his classes a few times.

It's funny, the actual form for an LLC in CA is one single sheet of paper. But for legal purposes, you have to take care of all of the specifics of incorporation and keep that stuff filed away. It's kind of a confusing process though, hence why LegalZoom does so well.

Wright · 02-08-2010, 03:25 AM

Check with an attorney regarding CA law, but in many jurisdictions a contract may be entered into via a 'pre-incorporation contract' by a 'company in formation' and a third party with the contract to be ratified by the company upon its formation.

Also check to make certain that you wouldn't be assuming any potential personal liabilities/risks.

high risk · 02-08-2010, 12:19 PM

should have used an expedited service to incorporate.. Attorney Services, Document Filing, Document Retrieval - Sacramento, California

02-08-2010, 12:48 AM	#1 (permalink)
dchuk Senior Botter Join Date: Oct 2008 Location: San Diego,CA Posts: 5,466 iTrader: 35 / 100%	Temporary personal sales rep contract until LLC goes through? I mailed in my CA LLC paperwork right after the first of the year for tax reasons and apparently CA Sec of State office is struggling right now and they haven't even cashed my check yet. I have a few sales people ready to do sales on a product that's ready to sell, the only problem is that we nor the sales reps want to move forward without a contract. From my limited legal knowledge, I believe signing a contract between my currently non-existent LLC and a sales rep would actually be invalid and could create a legal mess down the road if something were to ever happen. So in trying to figure out a temporary solution in order to get sales started asap, I've been thinking about signing a contract between myself and the reps until I receive the LLC papers, and then signing a new contract between the LLC and the reps once the LLC is official, which would also include the necessary wording to transfer over any existing sales to the relationship of my company and the reps instead of myself and reps. Is that risky enough to be stupid? Has anyone run into a situation like this? Advice? Share Share this post on Digg Del.icio.us Technorati Twitter

02-08-2010, 01:12 AM	#2 (permalink)
Deliguy Senior Member Join Date: Sep 2006 Location: Oregon Posts: 4,942 iTrader: 11 / 100%	i believe as long as its written you can postdate a contract. I'd double check that if I were you, but if true then they would get their assurance of a contract under the company and you would get the goahead for them to start working but during that time they wouldn't be covered by the contract under the company. Share Share this post on Digg Del.icio.us Technorati Twitter __________________

02-08-2010, 01:44 AM	#3 (permalink)
supersundas Affiliate Markedurrr Join Date: Jan 2009 Location: On the interwebz Posts: 158 iTrader: 0 / 0%	What service did you use to incorporate? Share Share this post on Digg Del.icio.us Technorati Twitter __________________ LOL YOU RACIST!

02-08-2010, 02:17 AM	#4 (permalink)
dchuk Senior Botter Join Date: Oct 2008 Location: San Diego,CA Posts: 5,466 iTrader: 35 / 100%	@deli - that seems like a potential option, I'll check out that @super - The company is owned by myself and a friend, who majored in entrepreneurial studies so he's done this in his classes a few times. It's funny, the actual form for an LLC in CA is one single sheet of paper. But for legal purposes, you have to take care of all of the specifics of incorporation and keep that stuff filed away. It's kind of a confusing process though, hence why LegalZoom does so well. Share Share this post on Digg Del.icio.us Technorati Twitter

02-08-2010, 03:25 AM	#5 (permalink)
Wright Senior Member Join Date: Feb 2008 Posts: 309 iTrader: 36 / 100%	Check with an attorney regarding CA law, but in many jurisdictions a contract may be entered into via a 'pre-incorporation contract' by a 'company in formation' and a third party with the contract to be ratified by the company upon its formation. Also check to make certain that you wouldn't be assuming any potential personal liabilities/risks. Share Share this post on Digg Del.icio.us Technorati Twitter

02-08-2010, 12:19 PM	#6 (permalink)
high risk game of global domination Join Date: Sep 2008 Location: US Posts: 527 iTrader: 2 / 100%	should have used an expedited service to incorporate.. Attorney Services, Document Filing, Document Retrieval - Sacramento, California Share Share this post on Digg Del.icio.us Technorati Twitter __________________ i accept contract killings for affiliates who try to defraud your offer or network. (or stop them before they do it, if that's more your speed. guaranteed.)

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