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congratulations youre starting a business with a friend but what will you do in a few years if one of you wants to move on you need a plan hi Im Trisha Dunlap managing partner of Dunlap law a small business law firm in Virginia when we form a new Corporation or LLC we always recommend that the members of the LLC were the shareholders of the corporation negotiate the terms of a buy sell agreement right now A Buy sell determines the terms of any future buyout you can use a buy sell agreement to restrict transfer of shares so that one shareholder cant sell her shares to just anyone after all you chose to go into business with these particular Partners not just anyone you can also set a formula in the buy sell for how shares will be valued in the future if a buyout is necessary or desired the company can get a right of first refusal meaning that any shares up for sale have to be offered to the company first and only if the company refuses will they be offered to other shareholders or e
