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Congratulations on starting a business with a friend! However, it's essential to have a plan for the future, especially if one of you wants to move on. Hi, I'm Trisha Dunlap from Dunlap Law in Virginia. When forming a new Corporation or LLC, we recommend negotiating a buy-sell agreement among members or shareholders. This agreement outlines the terms for any future buyouts and can restrict the transfer of shares, ensuring that partners sell only to agreed individuals. Additionally, you can set a valuation formula for future share prices and establish a right of first refusal, requiring shares to be offered to the company before being sold to external parties.
