In our firm’s representation of small and mid-sized businesses in St. Louis, we often handle matters involving adding additional business partners. While the decision to add a partner to an existing business is a big issue to begin with, the process for finalizing and documenting the new ownership structure is perhaps an even bigger issue. The importance of reaching a detailed agreement and preparing related documents cannot be overstated.
I recently worked with a successfully existing Missouri business that was expanding from two owners to three. The existing LLC members were seeking to add a mutual colleague as a third owner or partner in the business in order to utilize his unique business expertise. We became involved once the decision to add the new partner was made.
In working with these business owners, our top priority was to only document the transfer in ownership, but to also provide a detailed agreement that matched the expectations of the owners. The primary change we made was drafting an amendment to the LLC operating agreement which provided some much-needed additional language regarding ownership interests and other matters relating to the business. In finalizing this transaction we also prepared necessary LLC company resolutions and a detailed assignment agreement that transferred partial ownership in the business to the new partners.
Our law firm is based in St. Louis and represents businesses primarily in Missouri. We practice in the areas of business law, real estate law and estate planning.
Keywords: Business Law, LLC, Business Partners, Agreements, Operating Agreement, Amendment, Schleiffarth Law Firm, Jim Schleiffarth, Lawyer, Attorney, St Louis, Webster, Missouri