What is the difference between a corporation and an LLC?
There are a number of differences between a corporation and an LLC. There are also several different types of corporations. The differences affect how the company is taxed, how it operates, who can be a shareholder and a variety of other factors that are specific to each business. We would be happy to talk with you to discuss these differences as they relate to your business and help you decide what form your company should take.
What is a buy-sell agreement?
A "buy-sell" agreement is the name given to the document that is intended to set forth the exit plan for shareholders or partners. A well written document will provide specific direction for an equity holder who needs to disentangle him or herself long before the only options are retirement, bankruptcy or an expensive business divorce.
The document will determine: if the exit or decision to cease operations has to be unanimous; if a purchase by co-shareholder or co-partner is required; how long a disabled shareholder or partner has to be carried; if a spouse or other family member can inherit an equity interest in the event of death of a shareholder or partner; and, if a transfer of equity to a third party is permitted without the consent of the surviving shareholder or partner. The decision to exit, or need to see your co-shareholder or co-partner exit, may not be voluntarily. If discussed and planned before the fact, it doesn't also have to be messy.