Buy-sell agreements protect your business from future problems by consolidating what happens if an owner wants or needs to sell their portion of the business. This agreement describes who can buy an owner`s interest, what the price will be, and what will happen to an owner`s portion of the business if it dies, is disabled, retires, goes bankrupt or divorces. The creation of a limited liability company with several members carries the risk that a change in circumstances will make it necessary for one of the members to redeem his affiliation with the LLC. These conditions include divorce, bankruptcy or an illness that prevents the member from participating in the operation as originally planned. To redeem the member`s interests, a written agreement must be negotiated, designed and approved by all members of the LLC. A buy-sell contract is a legally binding contract that defines the parameters under which shares can be bought or sold in a company. A buy-sell agreement is an attempt to avoid potential chaos if one of an organization`s partners wants or needs to leave the business. When a member leaves an LLC, the buy-sell agreement covers LLC`s right to acquire the outgoing member`s share in the business. In addition, it may contain terminology that makes this buyout mandatory, including: a draft LLC-Buyout contract provides a framework for the legal paperwork that consists of an LLC buyout agreement. A buyback agreement describes the procedure to follow when a member of your limited liability company (LLC) wishes to sell their stake in the property. Any business, even a small business, could use a purchase-sale contract. They are especially important when there is more than one owner. The deal would delineate how shares are sold in any situation – whether a partner wants to retire, experience a divorce or die.