What is an LLC?
LLC is short for Limited Liability Company. It is a stand-alone entity which is treated as separate from the person or people that own and operate it, thereby protecting them from personal liability.
Buy/Sell Agreements are a must for your organization, regardless of whether you are a sole owner or a partnership firm with one or more persons. The agreement will help protect the sale of your business interests in the future or if you want to purchase the interest of the co-owner/s.
A buy-Sell agreement will clear the picture if a situation develops in the future where you or your partner wants to sell their holding in the company. The agreement will clarify who can buy that interest and at what rate. The Buy-Sell Agreement will also outline what happens to the owner’s interest should they retire, or are unable to work because of a health reason, or should they pass away.
The Law Office of Rowena N. Nelson has been drafting buy-sell agreements for various businesses for a long time now. We understand the legal implications for businesses of not having a buy-sell arrangement and help business owners create agreements that can fully protect their business interests for now and in the future.
The legal experts at The Law Office of Rowena N. Nelson will explain why life insurance and disability insurance have important roles in buy-sell agreements. After the value of your business is determined, the next step is funding the transaction. Insurance ensures that money is readily available when needed.
If any of the owners die, that person’s insurance policy can be used to finance the buyout. This will keep your business in good financial shape, and even other heirs can be paid an appropriate sum based on the terms of the agreement.
The Law Office of Rowena N. Nelson will also make you understand the implications of not having a buy-sell agreement for your business. A buy-sell agreement will clearly chalk out the future course of your business if one or more owners have to move out for any reason.
Not having an agreement means your business can be subject to a partition by sale. If there is a dispute between the business partners and the matter goes to the court, it may pass an order to sell off the business components and provide value to the new owner. It may give the new entrant the same decision-making powers as the oldest or existing partners.
The Law Office of Rowena N. Nelson is the best choice for drafting the buy-sell agreement for your business because we know how to make the agreement foolproof and comprehensive. We recommend that you create the agreement right at the inception of your business. At this point, all the partners are looking forward to working together and are generally agreeable to the terms.
Call us or visit our office now for a free consultation. We will make sure your buy-sale agreement covers every possible situation and secures the future of your business.