Making Sure Your Business Can Run Smoothly
If you are involved in a business with multiple owners or partners, it is important to have agreements put in place between the co-owners to ensure smooth operations. With proper planning, in the event of future disputes or complications, the control and operation of the business will not be threatened.
I'm Minneapolis attorney Lee Watson, and I have drafted buy-sell and control agreements for hundreds of Minnesota business owners, including various shareholder and member control agreements. Contact me to discuss the benefits of getting these agreements squared away early in the development of your business.
Drafting Agreements Between Business Owners
Simply filing business formation papers with the Secretary of State does not resolve any issues that may exist in the present or the future between the business owners. I help clients draft and negotiate agreements over issues such as:
- Voting rights and conduct of meetings
- Management responsibilities of owners
- Compensation of owners and managers
- Distribution of profits and assets upon dissolution
- Consequences of death, disability, divorce, retirement or expulsion of an owner
- Restrictions on sale of ownership interests
Depending on the type of business entity you are operating under, these agreements may require one or more documents, taking the form of a member control agreement, buy-sell agreement, shareholder agreement, partnership agreement or operating agreement.
Taking the Right Steps to Protect Your Investment
In the case of disputes between business owners, buy-sell and control agreements protect the interests of both majority and minority owners. They allow minority owners to benefit from the business while allowing the business to move forward under the majority's direction.
I am experienced at representing business owners in the drafting and negotiation of buy-sell and control agreements. Because these are agreements between parties who may have different interests, it may be beneficial for each party to be represented by a lawyer.
Contact me to learn more about the role buy-sell and control agreements play in protecting your investment of time and money in your business.
