Shareholder Agreements

Agree on the hard parts
before they happen.

A shareholder agreement is the contract among a corporation's owners — who can sell, at what price, and what happens when someone exits. We draft yours so a death, divorce, falling-out or buyout follows a plan instead of starting a fight.

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A buy-sell plan with a valuation method that actually works when you need it.

Includes
Buy-sell termsValuationTransfer restrictionsDrag & tag-alongFlat fee

Get your shareholder agreement drafted

Tell us who owns the company and what you want to happen when an owner exits — we'll draft the buy-sell terms. We'll set up a consultation with an attorney.

100% confidential · Se Habla Español

Co-owners almost never fall out while things are going well. The damage happens later — when one owner wants to retire, another gets divorced and a court is dividing the shares, a third dies and their stock passes to heirs who've never run a business, or two partners simply stop agreeing. Without a shareholder agreement, there's no agreed price, no agreed process, and often no way to keep an outsider from becoming your new co-owner.

A shareholder agreement settles those questions in advance, while everyone is still rational and aligned. It's sometimes called a buy-sell agreement because its core job is to control when shares can be bought and sold, by whom, and for how much. For closely held Florida companies it is often the single most important document the owners ever sign.

The events a shareholder agreement plans for

The classic triggers — often called the 'five Ds' — are death, disability, divorce, departure and default. The agreement says what happens to an owner's shares in each case: whether the company or the other owners can or must buy them, how the price is determined, and how that price gets paid (lump sum, installments, or funded by insurance).

It also controls voluntary transfers. A right of first refusal stops an owner from selling to an outsider without first offering the shares to the company and the other owners. Drag-along rights let a majority bring everyone into a clean sale of the whole company; tag-along rights protect a minority owner's right to join that sale on the same terms. Together these keep control where the owners intend it and keep the cap table free of unwanted strangers.

Valuation is where most agreements fail

The most common defect we see is a price mechanism that doesn't work. A fixed dollar figure that nobody updated for ten years. A vague 'fair market value' with no method to determine it. We draft a valuation mechanism that actually produces a number — a formula, an appraisal process, or a periodic agreed value — and we pair it with realistic payment terms so a buyout doesn't bankrupt the company. For owner-funded buyouts we also coordinate with life-insurance funding where it makes sense.

What we draft

A plan for every owner exit.

Buy-sell triggers

What happens to shares on death, disability, divorce, departure or default — and whether a buyout is mandatory or optional.

Valuation & payment

A price method that actually produces a number, plus realistic payment terms and optional insurance funding.

Transfer restrictions

Rights of first refusal and approval requirements that keep shares from landing with outsiders you didn't choose.

Drag & tag-along

Majority drag-along rights for a clean company sale and minority tag-along protection to join on equal terms.

Governance & deadlock

Board seats, protected decisions that need supermajority approval, and tie-breakers so the company doesn't freeze.

Non-compete & confidentiality

Reasonable restrictive covenants and confidentiality terms so a departing owner can't walk off with the business.

How it works

From ownership map to signed agreement.

1

Tell us who owns what

We learn your ownership, your concerns and the outcomes you want for each kind of owner exit.

2

We draft the buy-sell terms

You get a shareholder agreement with a workable valuation method, transfer rules and exit triggers — explained in plain language.

3

Align and sign

We reconcile it with your bylaws or operating agreement, revise until every owner is comfortable, and walk you through signing.

Common questions

Shareholder agreements, answered.

What's the difference between a shareholder agreement and a buy-sell agreement?
They overlap heavily. 'Buy-sell agreement' usually refers to the part that controls when shares can be bought or sold and at what price. A shareholder agreement is broader — it can include the buy-sell terms plus governance, voting, transfer restrictions and restrictive covenants. We draft whichever scope fits your company.
We're an LLC, not a corporation — do we need one?
The same protections matter, but for an LLC they typically live inside the operating agreement rather than a separate shareholder agreement. If you're an LLC, start with our operating agreement page; the buy-sell, valuation and transfer provisions are built into that document.
How is the buyout price determined?
However the owners agree in advance — and the method matters more than the number. We commonly use a formula tied to earnings or book value, a defined appraisal process, or a value the owners agree to update periodically. The goal is a mechanism that reliably produces a fair, fundable price years from now.
What happens if an owner gets divorced or dies without an agreement?
Without a shareholder agreement, shares can pass to a former spouse in a divorce or to heirs on death, making them your new co-owners by default — with no agreed price or process to buy them out. A shareholder agreement lets the company or the remaining owners control that outcome instead.

Settle the hard parts in advance.

Tell us about your owners, or call now to reach an attorney. We'll draft a shareholder agreement that turns death, divorce and exits into a plan instead of a fight — in English or Español.

Get your shareholder agreement drafted

Tell us who owns the company and what you want to happen when an owner exits — we'll draft the buy-sell terms. We'll set up a consultation with an attorney.

100% confidential · Se Habla Español