Business Operating Agreement Concerns

When you started your business, you generated an Operating Agreement or some similar document. The document looked all nice and legal at the time. You signed it and moved on. The business had very little worth at the time, so you didn't pay much attention.

Now, you are years into the business and you haven't given this document another thought.

As you have aged and the business or partnership grew, you start to think about the agreement.

In most Operating / Partnership Agreements there is a "Buy-Sell Clause" that is triggered by death or disability. When you started the business, those issues didn't matter. Now, they do.  What if?

  • Do you have the capital to fund a buyout of your partner(s)?
  • Do you like the idea of owning a business with your partner's wife and her new husband?  
  • Wouldn't you like a source to fund this part of the agreement?

Maybe it's time to take a second look at that document and figure out a way to fund it for pennies on the dollar.

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