Time for Your Company Document Legal Review

When was the last time you looked at, let alone reviewed, your company documents like your Articles of Incorporation, Bylaws, Operating Agreement, or Partnership Agreement. Of course, depending on your situation and how long you have been around, you should also have a few Resolutions, Minutes of your Board and Shareholder meetings, perhaps a Buy-Sell agreement, a Shareholder Agreement, Stock Certificates, and so on.

Types of Businesses

There are three types of businesses generally. First, there are businesses that were formed with […]

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Exit and Business Succession Planning: Valuations

When a buy-sell agreement includes a provision for the company or one or more owners to buy out the stock or interest of an owner, one of the most fundamental questions is how much they will have to pay.  There are several ways to handle this situation.

Agreed Value at Time of Purchase

First, it is always good to have a provision that allows the parties to work out a price on their own when they can agree.  Hopefully, the document is […]

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Exit and Business Succession Planning: The Disability Problem

Death of an owner is actually a little easier to plan for than the disability of an owner. Both situations raise very similar questions, for example, (1) who will do the work the owner was doing?, (2) how will the owner, or the owner’s family, survive?, and (3) who will step in to make decisions about running the business.  However, there are a few practical, big differences. 

When an Owner Dies…

When an owner dies, if the business has made basic […]

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Exit and Business Succession Planning: The Death of an Owner

Estate Planning
Unplanned Inheritance

When an owner dies, without specific planning, their business interest becomes a part of their estate. Without a will or directive, the assets in the estate will be transferred in probate according to state law. This transfer could also result in tax consequences depending on the value of the estate.  As far as exit planning goes, this may work adequately for a family run business where the spouse or a single heir is sufficiently involved in the business, […]

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Business Exit Planning for Small Business

Everyone will exit their business at one point or another.  Whether you shut the business down, sell your interests, or pass away, someday, you will no longer be in your business.  The same goes for your business partners.  One day, they will no longer be in the business. 

Some basic questions will help frame the issues:

If your business partner dies, do you want to be partners with their spouse or heirs?
If you die, will your own spouse or heirs want, […]

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