As your business grows, it may become necessary to add or remove owners from your company. There can be various reasons behind this decision – whether it be for financial reasons, personal reasons, or simply to bring on a new partner. However, this process can be tricky and it’s important to know the proper steps to take to ensure a …
Buy Sell Insurance vs. Key Man Insurance: Understanding the Difference and Importance for Your Business
Starting a business can be an exciting yet daunting experience. While focusing on the business strategies, legalities, and overall growth of the company, the importance of protecting the business from unforeseen circumstances can often be forgotten. This is where insurance comes in, specifically Buy Sell Insurance and Key Man Insurance. In this blog post, we will explore the difference between …
How to Buy into a Partnership: What You Need to Know
Buying into a partnership can be an exciting venture, but it is important to understand the legalities of doing so. It is strongly recommended that you hire an attorney with expertise in business and contract law in order to make sure that all of the necessary steps are taken in order for you to have a successful buy-in. Here are …
What To Do When “Equal Participation” Equals Deadlock
Absent language to the contrary in an Operating Agreement, “equal participation” means all partners have equal rights and authority to participate in the management of the business. This means each partner has one equal vote when it comes to decision making. Obviously, this can get tricky when you have an equal number of partners. So, what do you do when …
Why You Need a Buy-Sell Agreement
Changes in small business ownership can be costly, and negatively impact the business. If you are in a small business partnership, you should establish a buy-sell agreement to pre-determine what will happen if one of the partners leaves the business. You may not anticipate that either of you will leave; however, death, divorce, changes in circumstance, a risky economy and …
