If you`re starting a Limited Liability Company (LLC) with one or more partners, you`ll need a sales agreement template to outline how shares of the company will be sold and transferred. This legal document helps ensure that all parties are on the same page and understand their rights and responsibilities.
While you can hire a lawyer to draft a custom sales agreement for your LLC, there are also many free and affordable templates available online. Here are some important things to keep in mind when choosing and using an LLC sales agreement template:
1. Look for a template specific to your state and industry: LLC laws can vary by state, so make sure any template you use is customized to your state`s regulations. Additionally, some industries may have specific requirements or considerations, so you`ll want to make sure your template covers these.
2. Include key sections: While every sales agreement will be slightly different depending on your specific needs and situation, there are some key sections that should be included in almost all cases. These may include:
– General terms and definitions: Define key terms and concepts related to the sales agreement, such as what constitutes a “transfer” of shares.
– Purchase/sale terms: Outline the terms of the sale, including the price and payment schedule, any warranties or guarantees, and any conditions that must be met before the sale can go through.
– Transfer restrictions: Specify any restrictions on how or when shares can be sold or transferred, such as requiring approval from all LLC members or prohibiting transfers to certain parties.
– Right of first refusal: Determine whether other LLC members have the right to purchase any shares that are being sold before the shares can be sold to an outside party.
– Closing procedures: Outline the steps that need to be taken to finalize the sale, such as signing documents and transferring funds.
3. Be prepared to customize: While a template can be a great starting point, you should be prepared to tweak it to fit your specific needs. For example, you may need to add provisions related to what happens if a member passes away or becomes incapacitated, or if there is a dispute over the value of the shares being sold.
4. Get legal advice if needed: While a sales agreement template is a helpful tool, it`s always a good idea to consult with a lawyer if you have any questions or concerns. An attorney can help ensure that the agreement meets all legal requirements and is tailored to your specific situation.
In sum, an LLC sales agreement template can be a valuable tool for ensuring that the sale of shares in your company is conducted fairly and legally. By choosing a template that`s specific to your state and industry, including key sections, and customizing it to fit your needs, you can help protect your interests and those of your fellow LLC members.