By M. Lisa Odom, Esq. Poole & Shaffery, LLP

A Santa Clarita business attorney from the law firm Poole & Shaffery, LLP is talking about five reasons business owners should consider having some form of an ownership agreement with their business partners.

M. Lisa Odom, a partner at Poole & Shaffery, LLP’s business transactions group, noted that she often sees successful business owners who either have no agreement in place with their business’ co-owners, or their written agreement is legally insufficient.

While the specific type of ownership agreement differs depending on the type of company, Odom advises that ensuring an adequate agreement is in place protects both the business owners and the business itself.

“Having this type of arrangement set up with your partners in advance of any problems between owners can be extremely beneficial not only to the owners, but it can be imperative to the ultimate survival of the company itself,” Odom said.

Odom offered the following five reasons to consider obtaining an ownership agreement for a business:

1. To provide clear terms of management and control of the company, helping to prevent misunderstandings between owners and defaulting to state law in the case of a dispute;
2. To make sure ownership of the company remains in select hands, preventing an owner who leaves the company from selling their shares to an unknown outside party;
3. To account for unplanned contingencies and/or life events among the owners, such as death, disability or conviction of a crime;
4. To prepare exit strategies if an owner wants to quit, retire, etc.; and
5. To establish the “value” of the company, such as establishing a “fair value” or “agreed value” set by the owners based on an appraisal process or formula.

“An ownership agreement can allow a company and its owners flexibility to craft terms and conditions of ownership that are based on what is mutually acceptable to all parties involved,” Odom said. “As with any important contract that affects a party’s rights and proprietary interests, legal and tax counsel should be consulted before any such agreements are signed.”

Poole & Shaffery, LLP is a full-service law firm in Santa Clarita comprised of experienced business attorneys with a commitment to provide quality representation for business and corporate clients. The Santa Clarita business lawyers at the firm specialize in business transactions, business litigation, employment counseling, employment litigation, transportation and a variety of other legal services. Those in need of a business attorney or lawyer in Santa Clarita can expect the personal, hands-on attention customary of a small firm and the extensive professional resources typically found at a larger firm.

Poole & Shaffery, LLP

25350 Magic Mountain Parkway

Second Floor

Santa Clarita, CA 91355

661-290-2991

Poole & Shaffery, LLP, Santa Clarita

Poole & Shaffery, Poole and Shaffery, Santa Clarita Business Attorney, Santa Clarita Business Lawyer, Business Attorney Santa Clarita, Business Lawyer Santa Clarita