For existing companies with more than one member.
A Buy-Sell Agreement is an important legal document that governs the sale of a member’s interest in an LLC when any of 5 “Ds” occurs – Disagreement, Death, Disability, Divorce, or Departure (i.e., Retirement) ….and, Bankruptcy, but that doesn’t fit the 5 Ds rule!
There is the option for a sixth “D” that would trigger a buy-sell event – Discontinued Employment for Cause. This occurs when one of the Members commits an act that warrants termination of employment for cause, such as stealing from the company.
*** Note: Given the interrelated nature of the two legal documents, it is S&A’s firm policy that we do not offer a stand-alone Buy-Sell Agreement to companies that formed with an Operating Agreement through LegalZoom or another firm. If this applies to your company, give us a call to discuss a “corporate cleanup” of your existing foundational documents.