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Your attorney’s goal should not be to win at all costs. Rather, it should be to achieve a favorable outcome for you as efficiently as possible. It is important that your attorney set realistic expectations at the outset as to the costs you should expect, the concerns that the attorney has about the outcome of your case, and the length of time that you should expect your case to take.
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In this article, we discuss buy-sell agreements for corporations and LLCs. We answer common questions and discuss agreements that cover death or disability of the owner as well as the limitation that can be found in these agreements.
Buy-sell agreements can cover some or all of the following events:
A buy-sell agreement is a contract between the owners of a business that allows its owners to remove themselves from ownership of the company. It also lays out who may be permitted or required to buy their shares, how they will be valued, and how the purchases will be funded.
A buy-sell agreement enables business owners to plan how an owner and their business will separate due to an event such as the death or disability of an owner, a decision to terminate ownership through sale of stock, retirement, or the company’s decision to part ways with the owner with or without cause. For more information on how to use a buy-sell agreement if an owner is retiring, check out How to Use Buy-Sell Agreements to Plan for an Owner’s Retirement.
A well drafted buy-sell agreement should contain all of the following components:
In Lincoln Park, a minority interest in a Corporation or LLC is a shareholder of a corporation or a member of LLC who does not control the operations of the business. A minority shareholder is anyone who owns less than 50% of the shares of a company, and does not have voting power over the company’s decisions.
What Special Rights and Remedies Do Minority Shareholders of Close Corporations and LLCs Have in Chicago? Read more in our article about these topics and more