Everything partners need to create a buy-out agreement that will protect a business if someone leaves.For many entrepreneurs, being in business means working with one or more co-owners. But what will happen to your company if a co-owner: · wants out of the business? · wants to retire? · goes through personal bankruptcy? · wants to sell his shares to someone else? · goes through a divorce? · passes away? To make sure there's a smooth transition following someone's departure, it's essential to create a sort of "premarital agreement" for your business with a "business buyout agreement" (or "buy-sell agreement"). This legal document clarifies when co-owners can sell their interest, the circumstances when someone must sell, who can buy into the business and what price will be paid.The updated 4th edition of Business Buyout Agreements features a simplified approach to creating an agreement and walks you through creating your own contract, which is included on CD-ROM and as a tear-out.
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Anthony Mancuso is a corporations and limited liability company expert. He is the author of several Nolo books on forming and operating corporations (both profit and nonprofit) and limited liability companies. His titles include Incorporate Your Business, Form Your Own Limited Liability Company, The Corporate Records Handbook, and LLC or Corporation?. Bethany K. Laurence joined Nolo as a small businesses editor and author in 1997. She holds a B.A. degree from Boston University and a law degree from University of California, Hastings and is a member of the California State Bar.
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