Any business with more than one owner needs to have a properly drafted buy-sell agreement.  A buy-sell agreement is an agreement between the owners of a business that is a binding contract that controls how and when owners can sell their interest, who can then buy into the company and at what price shall be paid for the business interest.

Buy-sell agreements should be used whenever there is more than one owner of a company. A buy-sell will come into play when one of the owners, passes away, becomes bankrupt, retires, is incapacitated, gets divorced, etc.  Think of the buy-sell as an estate plan for your business.