I am buying out my partner in a LLC, what are the things to include in the separation agreement

Asked 8 months ago - Milwaukee, WI

I am buying out my partner in an LLC, what are the items to include in the separation agreement to ensure the separation is full and final and I am protected. Some items that have been suggested include:
Non-compete
No disparaging
No disclosure
No recourse.
Is there anything else? Also is there a standard document for doing this, I am getting quotes for doing this that are outside of my planned range. Is there any cost effective option?

Additional information

Thank you all for your advise, I spoke with a lawyer who is now helping put this together.

Attorney answers (4)

  1. Tajara Dommershausen

    Pro

    Contributor Level 18

    6

    Lawyers agree

    Answered . don't be penny wise and pound foolish, at a minimum have an attorney look at it before you sign it. Spending some money now could save you a ton of money later when you have a good agreement that deals with the contingencies you need. It is always more expensive to fix errors later than to do it right the first time.

    In accordance with the Avvo community guidelines, this communication does not constitute "legal advice", nor does... more
  2. Joseph Albin Larson

    Pro

    Contributor Level 12

    2

    Lawyers agree

    Answered . I recognize your desire to save a little cash, but if you're worried enough to ask about it in a forum like this, then you should really consult an attorney to make sure your interests are protected. As the other attorney said, you only get one chance to do this right and the cost of sorting out problems later will far surpass anything you will spend on this document up front. Further, if it's just one document and the separation is fairly straightforward, you should be able to find an attorney who will help for a reasonable amount. Tell the attorney what you expect to pay and he/she will tell you if that's possible. If it's not, then you can keep looking. I suspect you'll find someone willing to help you for a reasonable amount.

    Best,
    Joe Larson

    This answer is for information only. It does not constitute legal advice. This answer does not constitute, nor do... more
  3. Ili J. Subhan

    Pro

    Contributor Level 14

    2

    Lawyers agree

    Answered . Yes. All the items you listed would need to be included. There would also be other clauses that would be appropriate to protect your interests. There are "boilerplate" documents, but those documents are not drafted with your specific business and interests in mind. Those documents may leave you open for liability. Spending the money upfront on a good business lawyer will save you time, money, and inconvenience in the future. Also, there are cost effective options available to you. You can draft the document and have a lawyer review it. However, you should be able to find a lawyer to meet with you and draft the document at a reasonable cost. Consult with a business lawyer and discuss your business in greater detail, he or she will be able to advise you on the legal issues that need to be addressed for your situation.

    The information provided is intended for informational purposes only and should not substitute for the advice and... more
  4. Maxwell Charles Livingston

    Pro

    Contributor Level 13

    1

    Lawyer agrees

    Answered . I must agree. Even if you cover the issues you should cover, it is possible you do it in such a way that there are loopholes. I welcome you to contact me further to discuss.

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