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Legal guide msp A LEGAL GUIDE TO MANAGED SERVICES by Robert J Scott A LEGAL GUIDE TO MANAGED SERVICES Introduction A managed services provider ??MSP ? provides organizations with predictable business-focused information technology services that optimize o

A LEGAL GUIDE TO MANAGED SERVICES by Robert J Scott A LEGAL GUIDE TO MANAGED SERVICES Introduction A managed services provider ??MSP ? provides organizations with predictable business-focused information technology services that optimize operations manage risk and deliver measurable value Services provided by MSPs typically include remote monitoring back-up patch management and help desk support MSPs generally provide these services in exchange for a monthly service fee determined by the number of computers servers and desktops that the MSP is engaged to support If you o ?er or are planning to o ?er managed services it is important to select the right entity structure and work with experienced counsel to construct agreements with your employees customers and partners This document identi ?es the legal issues facing MSPs from their inception outlines strategic objectives and provides sample contractual provisions used to achieve those objectives Forming Your Entity and Starting Your Managed Services Business If you want to become an MSP but do not currently have a business set up to provide those services the ?rst step you should take is to select the state in which you would like the business to be formed Many companies choose the state where their principal place of business will be located However there may be other states with more favorable business treatment e g cheaper annual franchise taxes cheaper ?ling fees or fewer procedural formation requirements that will allow you to form your business in that state If you choose to form your business in a state other than your own you will need to make sure that you register the company providing MSP services as a foreign out-of-state business in your own state After you choose a state you will need to decide what you want to name your company After you have prepared a list of possible names you will want to check to see whether the name you want is available in the state where you want to form your business Each state has its own set of laws regarding how to form your business what your business can be called and what protections will be a ?orded to your business Several types of business entities their formation requirements and their protections are discussed below Corporation ? Can be a public company traded on the stock market or a private company shareholders can purchase shares but the stock is not traded on the stock market ? Businesses usually need to ?le a Certi ?cate of Incorporation or similar document with the Secretary of State ? s business or corporation division ? Usually consists of shareholders and a board of director ? Many states allow corporations with only one shareholder and one director which in some instances can be the same person entity THIS GUIDE IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD IN NO WAY BE CONSIDERED A SUBSTITUTE FOR LEGAL REPRESENTATION PLEASE CONSULT YOUR COUNSEL TO ASSIST YOU WITH YOUR LEGAL DOCUMENTS Ross Avenue Suite East Dallas T exas t f