Buy Sell Partnership or Shareholder Agreement

A buy sell partnership or shareholder agreement is an agreement where business partners or shareholders have a written agreement to distribute their business assets upon an incapacity, death, or one partner's desire to sell the business. Two days ago, I met with two business owners and their business had about $1.5 million in sales and had been in business for six (6) years. Like many business owners, they did not have a written shareholder or partnership agreement. This was valuable for them and you because no spouses can be your partner upon a divorce or any heirs can be your partners upon death. Thus, a buy sell agreement restrict a spouse from being able to be a partner or shareholder. Many small business owners want a buy-sell agreement because they want to know their business partners/shareholders. Otherwise, their small businesses would be difficult to operate. It is important to speak with an attorney because often times, we see issues that either partner or a form on the internet will identify. Second, there are tax considerations to consider. In the above example, we must be sensitive to their tax considerations.

Sean Robertson, Attorney at Law
Robertson Law Group, LLC
(312) 498-6080 or (630) 364-2318
RobertsonLawGroup@gmail.com