Each business is unique, and the question of which form of business organization is best can only be answered by looking at the specifics of the business in question and the goals of its owner or owners. The limited liability company (LLC) is a popular form of organizing business and investment activities. The LLC offers protection from personal liability for business debt, the tax advantages of a partnership, flexible distribution of profits and losses and simplicity of maintenance.
Some of the common documents needed for a business include:
A Buy/Sell Agreement is a lifetime contract providing for the transfer of a business interest upon the occurrence of one or more triggering events as defined in the contract itself. For example, common triggering events include the retirement, disability or death of the business owner.
An interest in any form of business entity can be transferred under such agreement, to include a corporation, a partnership or a limited liability company. Also, a Buy/Sell Agreement is effective whether the business has one owner or multiple owners.
As a contract, a Buy/Sell Agreement is binding on third parties such as the estate representatives and heirs of the business owner. This feature can be invaluable when the business owner wants to ensure a smooth transition of complete control and ownership to the party that will keep the business going.