Nashville Business Agreement Attorney
Your business represents your most significant investment of both capital and effort. When it comes to business agreements, leave nothing to chance. The law office of Larry R. Williams, PLLC can assist you with all of your business law needs. We specialize in the following kinds of agreements:
The transfer of stock refers to a process by which a company sells shares of their company’s stock to a third party. It differs from a stock purchase in that only a portion of the company is being transferred to an entity. You may participate in a stock transfer if you’re part of an S-corp or corporation; sole proprietorships and partnerships cannot transfer stock by their very structure. A stock transfer requires the expertise of a law firm. A good stock transfer aims to achieve three things:
- It ensures order. A successful transfer can ensure retention of key employees in the event of death or termination.
- It provides a market for stock. In a close knit-corporation, a stock transfer agreement can provide some assurance that there will always be a market for stock upon termination.
- It retains key (employee) shareholders. Based on their continued loyalty to the corporation, employees may be rewarded with stock.
A solid stock transfer agreement is especially beneficial to S-corporations. Since employees hold all of the stock in an S-corp, a good stock transfer contract is a necessity, so that a company can continue unhindered in the event of key employee termination. We can also draft stock transfer agreements, allowing for the speedy resolution of shareholder disputes.
Membership Interest Transfers
In a limited liability company (LLC), each member of the company retains a percentage of ownership. If one member wants to leave the business, they may wish to transfer all or some of his or her ownership, called interest, to another member. A skilled legal representative can help you complete this transaction by:
- Becoming familiar with the LLC’s operating agreement, taking into account any requirements or restrictions.
- Completing the transfer while complying with Tennessee state and local ordinances.
- Calculating the value of your ownership in the LLC.
- Drafting and collecting signatures for all of the necessary documentation.
- Reviewing a transfer agreement for fairness.
A successful membership interest transfer allows an LLC to continue its business with minimal interruption. Larry R. Williams, Attorneys at Law, prides itself on completing these agreements efficiently and fairly.
According to the Portland Business Journal, only 1.5% of businesses retain a third generation of management. When it comes time to retire, business owners will often sell their companies, leaving their hard-fought companies vulnerable. With a perpetuation agreement, you can rest assured your business will always be in good hands.
Perpetuation agreements allow for owners to plan for their company’s future, not just after retirement but also in the event of unforeseen circumstances. In essence, it’s a life insurance plan for your business. Without a perpetuation plan, your company could go into sale if for some reason you’re not able to retain ownership.
Your perpetuation plan should, at the very least, offer a buy-sell contingency that protects the future of the company by allowing other owners or key employees to buy up your shares in the event of accidental death or disability. You may structure your agreement as a “wait and see,” or by naming specific events that automatically put your shares up for sale.
Allow Larry R. Williams, PLLC draft your next business agreement. If you have any questions about our specific services, please contact us. We’ll arrange an initial consultation that will address any of your concerns. Call us today.