Incorporation, LLCs & Corporate Law

Business relationships are susceptible to dispute just like family or social relationships. When two or more people have a partnership agreement in Wisconsin and are struggling to work together through a business dispute it can be difficult, if not impossible, to remain productive. If work disagreements eventually become an insurmountable roadblock the partners inevitably ask what they can do to get out of the situation.

‍

In the world of closely-held corporations and LLCs, the question of when stock transfer restrictions prove beneficial looms large. As our business attorneys delve into this complex terrain, they uncover not just the answer, but a roadmap for structuring these restrictions effectively. From approval processes to rights of refusal, the key lies in a nuanced approach that safeguards both business interests and shareholder intentions. By understanding the intricacies and advantages of these restrictions, businesses can navigate ownership changes with clarity and confidence.

‍

‍

In this article we discuss business succession planning and explain how to use buy-sell agreements to plan for an owner’s retirement. We explain three different options to plan for a business owner’s retirement with buy-sell agreements, including: the company purchasing a retiring owners shares through a lump sum payment, the company purchasing a retiring owner’s shares through installment payments, and the gradual transfer of a retiring owner’s shares to the next generation.  

‍