Head off disagreements with departing co-owners It happens to any business that's owned by more than one person: Sooner or later, one or more owners will want or need to leave the business. What will happen to your company if one co-owner wants to retire, files for bankruptcy, or goes through a divorce? Unless you plan in advance, it could threaten the survival of your business. In short, it's essential that you create a simple but effective "prenuptial agreement" for your company with a buyout agreement (buy-sell agreement). This document clarifies: when co-owners can sell their interests the circumstances requiring an owner to sell (personal bankruptcy, for example) who can buy into the business how much departing owners can ask for their shares, and how long continuing owners have to pay the former owner. Business Buyout Agreements walks you through the creation of your own legal agreement--before issues come up and cause problems. It provides all the tax and legal information you need at every step, such as how to structure the agreement to avoid estate taxes. You'll have a clear, fair agreement--and peace of mind.

Author Biography

Anthony Mancuso is a corporations and limited liability company expert. He graduated from Hastings College of Law in San Francisco, is a member of the California State Bar, and studied advanced business taxation at Golden Gate University in San Francisco. He has also been a consultant for Silicon Valley EDA (Electronic Design Automation) companies. He is the author of several Nolo books on forming and operating corporations (both profit and nonprofit) and limited liability companies. His titles include Incorporate Your Business, How to Form a Nonprofit Corporation (national and California editions), Form Your Own Limited Liability Company, The Corporate Records Handbook, and LLC or Corporation? His books have shown over a quarter of a million businesses and organizations how to form a corporation or LLC. Bethany Laurence joined Nolo as a legal editor in 1997. She holds a law degree from University of California, Hastings College of the Law, a B.A. degree from Boston University and is a member of the California State Bar. Laurence has combined her legal and financial expertise to edit many Nolo small business books and online software applications over the years. She is the co-author of Business Buyout Agreements: A Step-by-Step Guide for Co-Owners and Save Your Small Business: 10 Crucial Strategies to Survive Hard Times or Close Down & Move On. Laurence also blogs on small business strategies and legal information for business owners on Nolo's Small Business Legal Blog. Over the last decade she has been active on the board of directors of several local environmental and educational nonprofit organizations.