PGV Marketing

23/12/2021

23/12/2021

Specific to confidentiality, very often the management company will need to have access to information about your company that you don't want disclosed to competitors or the public. This will require a confidentiality and nondisclosure provision in the agreement.

Because a management services agreement is usually a complex and lengthy document, you may want to consider having an attorney assist with preparing the agreement, to be sure that all the details and responsibilities are clearly set out in the document.

22/12/2021

Independent Contractor vs. Employee Status
An important issue that arises with hiring any outside party is assuring the status of the outside party as an independent contractor. The Internal Revenue Service (IRS) has complex rules for determining whether someone will be classified as an employee or as an independent contractor. This also can be an issue under state law.

21/12/2021

The management services agreement should be carefully written to establish, as clearly as possible, independent contractor status for the manager and its employees. IRS rules and state laws for determining independent contractor status are too complex for a comprehensive discussion here. However, consideration will be given to the degree of control the company has over the manager, and the degree of control the manager has over the company. A company may hire an independent contractor to do a certain job, but if the company gets too involved in dictating how the job is done, the relationship may be determined to be that of employer-employee.

20/12/2021

A management services agreement can include many responsibilities, such as handling your employee payroll, developing and managing employee benefit programs, bookkeeping and accounting, maintaining company records, processing accounts payable and receivable, securing insurance for the company, and providing advice and consulting services for any number of needs.

If the management company is only hired for a specific project, the document may be called a project management consultancy agreement, or something similar.

19/12/2021

Many businesses hire an outside company to perform various management and administrative functions. The hired manager may be a corporation, limited liability company (LLC), partnership, or other type of business entity, or an individual operating as a sole proprietorship.

Compared with using in-house employees for management functions, contracting with an outside manager has the potential to reduce costs and increase efficiency. In addition to saving the costs associated with employees, your company also may be able to avoid the costs of equipment and office space associated with such employees.

18/12/2021

There can be many benefits to hiring an outside management company for your business. To help ensure things go smoothly, such an arrangement should be formalized with a management services agreement. This also may be called an administrative services agreement.

17/12/2021

Outsourcing management and administrative functions can save your business money and increase efficiency. Be sure you understand the management services agreement before you take this step for your company.