Buy-Sell Agreements: Texas

Texas business owners can use buy-and-sell contracts called buy-sell agreements to make it easy for surviving owners to purchase the equity interest of a co-owner who wants to leave the company (such as retirement), faces personal bankruptcy, becomes incapacitated because of ill health, or even dies.

If your Plano business is a Texas corporation, a Texas limited liability company, a general or limited partnership, you should consider putting a buy-sell agreement into place to protect the long-term interests of yourself and the business.

One of the key benefits of using a buy-sell agreement is that it reduces risks for everyone in advance of bad events. You can customize the agreement to have it address the unique facts surrounding your business and the individuals who own it rather than trying to deal with courts and lawyers after-the-fact when a co-owner leaves. With careful planning, the contract will permit your Plano company to continue operations without a hitch.

Of course, your business and your lives will change over the years. If you’ve got a buy-sell agreement in place already, you’ll want to review it with your Plano business law firm to make sure that it always reflects what you want done based on the present rather than how things used to be.

About the Author

With an advanced international law degree from Georgetown University and more than 14 years of real world legal experience, Attorney Mike Young shows Texas entrepreneurs how to protect and grow their businesses.
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