Does a corporation need to have a shareholders’ agreement?
When you start a corporation, or an LLC, one of the most important documents that you’re going to have beyond the initial formation documents will be for a corporation a shareholder’s agreement, in addition to bylaws and articles of incorporation. That shareholder’s agreement will state the rights of the shareholders. You may want to do something whereby you protect yourself from any shareholders selling their stock to someone else. You may think that this person is a great partner for my business, but if he or she decides that they wanted to get their money out of the business quickly, you want to be able to prevent them from selling them to someone who you don’t even know or may know and you don’t want them to be your business partner. You can do the same type of thing with a limited liability company, simply done through an operating agreement but as an additional safeguard to that is an agreement among the owners of the interest in the limited liability company.