Incorporation, LLCs & Corporate Law

Business relationships are susceptible to dispute just like family or social relationships. When two or more people have a partnership agreement in Wisconsin and are struggling to work together through a business dispute it can be difficult, if not impossible, to remain productive. If work disagreements eventually become an insurmountable roadblock the partners inevitably ask what they can do to get out of the situation.

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In this article we explain stock transfer restrictions in closely-held corporations and LLC.  We answer the question: “when are stock transfer restrictions beneficial?”  We discuss how to structure stock transfer restrictions in your operating agreement or buy-sell agreement.  We explain various options for restricting transfer of ownership interests including requirements that the board or other shareholders approve a transfer of stock, rights of first refusal for transfer of stock, and mandatory purchase of stock by the company or other shareholders.  

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In this article we discuss business succession planning and explain how to use buy-sell agreements to plan for an owner’s retirement. We explain three different options to plan for a business owner’s retirement with buy-sell agreements, including: the company purchasing a retiring owners shares through a lump sum payment, the company purchasing a retiring owner’s shares through installment payments, and the gradual transfer of a retiring owner’s shares to the next generation.  

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