LLC/Corporation Buy-Sell Agreement
A buy-sell agreement is a contract among the owners of a business that sets out in advance how an owner's interest will be transferred or bought out upon a triggering event such as death, disability, divorce, bankruptcy, or voluntary exit. Use this when the owners of an LLC or corporation want a signed plan for handling ownership transfers triggered by a member's death, permanent disability, divorce, bankruptcy, or voluntary exit — including a right of first refusal and an agreed method for valuing the departing owner's interest.
What's included
A ready-to-use llc/corporation buy-sell agreement covering triggering events (death, disability, divorce, bankruptcy, voluntary exit), right of first refusal for remaining owners, valuation method for the departing owner's interest, with signature fields already placed for Member A and Member B. Fill in the bracketed details (like [Company Name] or [Date]) using Docracy's built-in text editor, then send it out for signature.
This is a general template for informational purposes only and does not constitute legal advice. Consult a qualified attorney to review it for your specific situation and jurisdiction before use.
Key clauses
- Triggering events (death, disability, divorce, bankruptcy, voluntary exit)
- Right of first refusal for remaining owners
- Valuation method for the departing owner's interest
- Purchase price payment terms (lump sum vs. installments)
- Funding mechanism, such as life or disability insurance
- Restrictions on transferring ownership to outside parties
What you'll fill in
[Company Name][State of Formation][Owner 1 Name][Owner 2 Name][Ownership Percentage][Triggering Event][Valuation Method][Purchase Price Payment Terms][Effective Date]Legal summary
Signing this agreement legally commits the owners to a predetermined process for buying and selling ownership interests when a triggering event occurs, instead of negotiating terms after the fact. It generally gives existing owners or the company the first right to purchase a departing owner's stake at an agreed valuation, which helps prevent an outside party, creditor, or estranged spouse's estate from becoming an unwanted co-owner.
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.
FAQ
Is this LLC/Corporation Buy-Sell Agreement legally binding?
Signing through Docracy uses a simple electronic signature (SES), which is legally recognized for everyday business agreements under laws like the U.S. ESIGN Act and the EU's eIDAS regulation. This is a general template, not legal advice — for high-stakes or regulated agreements, have a qualified attorney review it for your situation.
Who needs to sign this LLC/Corporation Buy-Sell Agreement?
This template includes signature fields for Member A and Member B — already placed — plus 9 placeholder fields to fill in before you send it.
Can I edit this LLC/Corporation Buy-Sell Agreement before sending it?
Yes — Docracy's editor lets you edit the text, add or remove signature fields, redact sections, and reorder pages before you send it.
Do I need an account to send this LLC/Corporation Buy-Sell Agreement?
No — it's free for up to 2 signers with no account required. Create a free account only if you want to save it to a dashboard or reuse it later.
Try it with an AI assistant
Paste one of these into ChatGPT, Claude, or your assistant of choice:
“Generate a filled LLC Buy-Sell Agreement using this template for a two-member LLC with a 50/50 ownership split.”
“Explain the difference between the valuation methods commonly used in a buy-sell agreement so I can choose one for my company.”
“Adapt this Buy-Sell Agreement for a corporation with three shareholders and a right of first refusal.”
Why teams start with Docracy
“Docracy is a great product that I have tested and am using. It is easy to use, has good tools, is always up to date, and implements new features. Highly recommended.”— DACH Advisory
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.