A purchase-sale contract is recommended for businesses, LLCs, partnerships, sole proprietorships, and other business entities, with the exception of businesses with married owners, parent/child owners, or a single owner. While it makes the best sense to design this agreement when the deal starts, it can be created at any time. You may also include purchase-sell provisions as part of LLC`s corporate agreement. Any business, even a small business, could use a purchase-sale contract. They are especially important when there is more than one owner. The deal would delineate how shares are sold in any situation – whether a partner wants to retire, experience a divorce or die. Once all members have set and approved a value, you need to decide whether the ownership is acquired according to a payment plan or with a lump sum. A draft LLC-Buyout contract provides a framework for the legal paperwork that consists of an LLC repurchase agreement.6 min Read The amount of revenue and business losses for the outgoing member as well as all of his financial activities within the company and his capital account are indicated on Form K-1. You should consider a possible outcome if an outgoing owner no longer works for your business and causes problems for management. At first glance, the situation is good, but there may be tension between active and passive owners. Someone works very hard and long hours to build the business while others are interested in profit-taking, without such a hard effort….