Two friends have a great idea and decide to go into business together. The now-business-partners focus on finding capital to make the idea work, looking for a place to do business, and registering the company. The partners have many decisions to make and have no time to consider what will happen when the company ends, hopefully many years down the road. Unfortunately, this is a common occurrence with new businesses that can come with serious consequences.
When a business is started, the last thing on the founders’ minds is what will happen when the business ends or an owner wants out. Nobody goes into business with somebody they dislike, and nobody anticipates their good friend later becoming their adversary. This scenario, however, is all too common and results in messy, protracted, and expensive court proceedings down the road. This is where a Buy-Sell Agreement comes into play.
At Shinners & Cook, we understand the importance of creating Bylaws/Operating Agreements that are tailored to each business individual needs. Part of a good Bylaw Agreement/Operating Agreement is the Buy-Sell Agreement. A Buy-Sell Agreement contains the instruction manual on how the parties will dissolve the business, how one owner can exit the company without the company dissolving, and what to do when an owner dies and his or her interest passes to a spouse or family member. While nobody wants to consider these scenarios when beginning a business, it is much easier to agree when everyone is excited to be starting a business rather than years down the road when tensions are high and relationships strained.
Shinners & Cook has helped countless entrepreneurs take an idea and turn it into a successful business. Our Firm also helps businesses dissolve, partners break up, and businesses pass from the first generation to the second generation. Whatever your case may be, we are happy to provide you the best advice for your specific needs.
Give Shinners & Cook a call today at (989) 799-5000. Let our experienced business lawyers worry about the things that could go wrong so you can worry about making everything go right.