BizSugar.com › Legal › The Buy-Sell Agreement

When setting up a corporation or limited liability company (LLC), it is very important to have an agreement – called a “buy-sell agreement” -- providing for the transfer of each owner’s equity interest to the company and/or the other partners upon the occurrence of certain events. Sometimes the “buy-sell agreement” stands alone but often it is part of a much larger agreement (called a “shareholders’ agreement” for a corporation, and an “operating agreement” for an LLC).