Avoid Potential Business Disputes With a Buyout Agreement
When one owner wants outs, wants to get a new job, or wants to bring in another new owner, it is best if these terms are arranged ahead of time in a buyout or buy-sell agreement. These agreements are not necessarily about buying and selling your company. Rather, this type of business contract will help the company when one member dies, gets divorced, goes bankrupt, retires or wants to leave the company.
An attorney can help you and your co-owners set up a proper contract to guide you away from any legal complications in the first place. The agreement will spell out what happens when you want to make changes to your business, who can buy in, and for what price.
Too often businesses are forced to close or dissolve when one member wants to leave the company because there is no buyout agreement in place for the LLC. This may force you into a business dispute with the other members of the LLC.
With a proper buyout agreement, you may be able to avoid potential business problems with the other members of your company. To create a buyout agreement in Texas, or for help with a business dispute, talk with an experienced Texas business dispute attorney today.
The Voss Law Firm offers a free, no-obligation consultation at (866) 276-6179. You can also request a FREE copy of our book Business Disputes - Critical Information for All Business Owners, written by Houston, Texas business litigation attorney Bill Voss.
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Simon
12/11/2012 04:29 AM
Yes, too often I have seen a business partnership turn ugly because there wasn't a buyout agreement put in place. One might hire a lawyer, or friends becoming enemies because they could not come to an agreement. Having this agreement in place will definitely help.
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