Whether you have an established business or are starting a new one in Pennsylvania, you should always have your eye towards the future. Things come up often that could drastically change your business. It is better to be prepared than be caught off guard. One situation you want to be ready for is any change in your partnership or owner status. You can prepare for this with a buy-sell agreement.
As the name suggests and as defined by Forbes, a buy-sell agreement outlines how someone can buy into a business and how an owner can sell their portion of a business. If someone wants to become an owner of your business, this agreement helps to outline the process and details of how that can be done. This helps to eliminate issues with other owners and ensures everyone is on the same page in regards to adding someone to the business.
The sell part of the agreement is a little more complex. Selling your part of a business may not be something you ever think you will do, but life happens. You never know what the future could hold. For example, one reason many business owners sell is due to divorce. If you are getting a divorce and you own a business, your spouse could come after it. To protect your partners, you may sell your part of the business.
Another situation is the death of an owner. The buy-sell agreement can outline how this is handled, too. Really any situation where a partner leaves the business or is added to the business is covered under this document. This information is for education and is not legal advice.