Copyright Articles 1996 - 2013 - All Rights Reserved

Minnesota criminal law, criminal defense, Divorce, custody, Lawyers

Business Agreements 


 General Info

About this Site


Ask-A-Lawyer: Questions


Business & Corporate Law

Minnesota Franchise Law

Freedom of Information Act


Criminal Defense Center

DWI Center


Minnesota Divorce

Collaborative Law


Estate Planning Center


Minnesota Juvenile Justice Center

Minnesota Lawyers  
Ofc. 612.240.8005  
Suite 700  
5775 Wayzata Boulevard  
St. Louis Park, MN 55416  



Starting a Business - Business Agreements and Succession Planning

Mike and Dave, close friends, start a business in 1972. As part of their business they create Labor Union Directories. The revenue is derived from selling advertising space to local businesses which will appear in the directory.

The business succeeds wildly and 20 years later, Dave and Mike find themselves expanding and realizing great profits. Mike passes away unexpectedly and without any succession planning or buy-out contracts signed by Mike or Dave, Dave suddenly finds himself in business with Mike's wife who has no experience in the business as a 50% partner.

All to often, we are confronted with conflicts between business partners or business shareholders where they failed to plan ahead by drafting partnership agreements or shareholder control agreements addressing buy-out and succession issues.

Are you prepared?

What if your business partner retires, sells her portion of the business, or gets a divorce?

Succession planning seeks to manage these issues, setting up a smooth transition between you and the future owners of your business. With family businesses, succession planning can be especially complicated because of the relationships and emotions involved - and because most people are not that comfortable discussing topics such as aging, death, and their financial affairs.

Nationwide statistics indicate that more than 70% of family-owned businesses do not survive the transition from founder to second generation. All too often, the business is doomed by family discord over the business transition or tax issues related to the transfer.

One important aspect of business governance is the fact that business management and business ownership are distinctly separate creatures. A business owner may elect to transfer management powers of a business to one person, perhaps a child, while transferring ownership shares of the business to many people, perhaps many children.

To make sure there's a smooth transition, it's important that business owners in limited liability companies, corporations and partnerships write a buy-sell agreement at the start of their relationship.

Additionally, proper planning may allow business owners to minimize taxes upon death through innovative transfer tax strategies. Our experienced business lawyers specialize in succession planning and can provide your business with invaluable advice about these tax strategies.

It is important to remember that not every agreement will be fitting for every business. Therefore, it is important to consult with a knowledgeable business lawyer regarding buy-sell agreements and succession planning issues.


Call (612) 240-8005

Minnesota Business Law Center

Bulletin Board
Ask a question on our Bulletin Boards

Ask-A-Lawyer your legal question

Business Legal Forms
Download & Do-It-Yourself

Minnesota Business Listings

About this Site  |  Ask-A-Lawyer: Questions  |  Business & Corporate Law  |  Minnesota Franchise Law  |  Freedom of Information Act  |  Criminal Defense Center  |  DWI Center  |  Minnesota Divorce  |  Collaborative Law  |  Estate Planning Center  |  Minnesota Juvenile Justice Center


Any information contained on this site is general in nature. You should not rely on any articles, postings or other information on these pages as legal advice or to create an attorney-client relationship. If you are in need of legal advice concerning a particular matter, you are encouraged to contact an attorney in your state.

Any Lawyers referred have indicated the geographic area and the areas of law in which they will accept referrals. This site makes no investigation into the referral attorney's particular abilities to handle the Client's legal matter. Before employing the attorney, the Client should interview the attorney and make whatever investigation the Client feels is appropriate into the attorney's qualifications to handle the Client's legal matter.

Minnesota Lawyers

Sign In

 Sign In