Do I Need an Operating Agreement, Shareholder Agreement, or Buy-Sell Agreement?

Yes. An operating agreement, shareholder agreement, partnership agreement, or buy-sell agreement can define ownership rights, management authority, voting procedures, profit distributions, dispute resolution, transfers of ownership, and buyout rights. While each business has different needs, these agreements are especially important for closely held and family-owned businesses because they reduce uncertainty and help protect the long-term stability of the company.

Read the Best Corporate Governance Practices for Rookies.