SHAREHOLDER/OPERATING AGREEMENTS

Whether you are a shareholder of a corporation or a member of an LLC, you need to have a shareholder agreement or operating agreement to explain the rights and obligations of the co-owners.  Absent such an agreement, you can expect trouble and expense when somebody wants to sell, or when somebody dies.  Time and time again, I have seen business people put off drafting and executing such agreements, and time after time, I have seen those with no agreements wind up in expensive and time consuming litigation to have a court determine what their respective rights are.  Bad idea.