Multiple Owners - Information

What To include for multiple owners

Your plan should clearly state how many owners and what percentage that each owns in the company.
Doing this up front avoids any confusion of family or friends who think that lending money to start your business means they will become owners down the line if the business becomes successful.
The same with employees - if they are providing 'sweat equity' (i.e. unpaid work) in return for ownership shares, spell that out in writing and have it reviewed by an attorney to avoid problems.

For multiple non-spousal owners, a buy-sell agreement is a good idea but not part of your plan document.

 

click here to go back