California business owners can decide how they want to structure and run their businesses. Associate buy-ins, or selling a portion of a business to associates, is one method that can be utilized. Associate buy-ins are complicated transactions mostly because of the many models that exist. Due to the involved nature of associate buy-ins, working with a Los Angeles business attorney can clear up any questions and confusion a business owner may have as well as help business owners understand the process and how it will impact them.
The experienced and talented Los Angeles business lawyers at Leiva Law have a comprehensive understanding of all aspects of business law in California including associate buy-ins. Business owners in Southern California must understand what options are available as well as what their rights and responsibilities are when considering associate buy-ins. The talented Los Angeles associate buy-in lawyers at Leiva Law will evaluate your situation and help you navigate the process efficiently and to your benefit.
What Should You Include in Your Associate Buy-In Agreement in California?
When you work with the Los Angeles business attorneys at Leiva Law, you can rest assured that your interests will be fully represented and that the management of your associate buy-in will be as painless and as straightforward as possible. One of the steps of an associate buy-in is to draft an agreement that touches on current issues and potential situations that can arise in the future. Some of the key points that should be addressed in your associate buy-in agreement include:
- Have an appraisal done to determine a fair purchase price for your business that is realistic and makes sense and also is a value that everyone can agree on.
- Include liabilities that come with your business like loans or leases that your practice already has in place and which would affect the associate.
- Detailed information about the financing of the buy-in.
- Determine the guidelines and operating procedures that will be used to manage the business. Partnership agreements define the role each party has with business operations and as well as how much responsibility they assume.
- Outline compensation and how earnings will be accrued and paid.
- Layout the way that profits will be handled and divided.
- Entail what the process will be if the partnership dissolves.
- Include directions on what to do when it is time for retirement.
There are many points that have to be included in a thorough and even-handed associate buy-in agreement in California. Not only does the document have to go through the process of the buy-in itself, but it also must speak to operations and future issues that may become present. When each topic is carefully addressed, an associate buy-in contract can make a partnership proceed smoothly and efficiently.
Speak with a Business Attorney in Los Angeles
Protecting yourself and your business is important. Every decision you make as a business owner should be done in a calculated way that benefits you. To safeguard your interests and to help you strengthen and improve your business, the Los Angeles business lawyers at Leiva Law can help. To learn more about the many valuable business services that the California business lawyers at Leiva Law can provide, please call (818) 519-4465 to schedule a free consultation.