As once wisely stated, change is the only constant. For a small business, LLC, sole proprietorship, a partnership or corporation, a change of ownership, especially when it is sudden, can present difficult legal questions. Retaining qualified legal guidance from a New York business lawyer makes sense when you face the challenges of a change in ownership of your business.
At some point during a business’ existence, it is highly likely that a board member or other person with controlling interest in the company will leave. If a buyout agreement is not established when a member leaves, state law may force business dissolution of a company. This is especially true for limited liability companies. With a buyout agreement, businesses can create predetermined rules for handling transfers of ownership and can protect against unwanted buyers from gaining an interest in the business.
Buyout agreements can determine:
While buyout agreements are frequently incorporated within a business plan and operating agreement, a separate legal document may be drafted to establish the terms of a buyout. Buyouts can be made effective by any number of life events, including death, retirement, disability, divorce, default, and loss of license.
Buyout agreements are just one of several legal tools our skilled New York business litigation lawyers can use to help you plan for your business’ growth and smooth operation. If your business is in need of a buyout agreement or are considering a change to your corporate structure, we urge you to consult with our firm to explore your legal options and work towards a solution that best fits your specific needs. From business organization consultation to business litigation, we provide premier-quality legal representation in all areas of business law and can help guide your business towards a legally-sound future.
Contact our New York business attorneys today to discuss your situation in further detail.