A Buy-Sell Agreement is an agreement between shareholders of a corporation that governs what occurs when a shareholder’s ownership interests are to be transferred.
A Unit Transfer Agreement is an agreement between members of a limited liability company (LLC) that governs what occurs when a member’s ownership interests are to be transferred.
Buy-Sell and Unit Transfer Agreements frequently provide for a purchase price and purchase procedure for shares or membership units so that if a member or shareholder dies or otherwise leaves the business, then remaining shareholders or members are able to purchase the shares or membership units. Buy-Sell and Unit Transfer Agreements are a useful tool to provide for the continuation of business ownership over time. They are also a useful tool in allowing shareholders and members to control ownership of an entity.
Contact us to arrange an appointment to speak to one of our lawyers about creating a Buy-Sell or Unit Transfer Agreement.
*This material is educational only, it does not constitute legal advice, it should not be relied on and it does not create an attorney-client relationship.