Let’s take a look at the own­ers. If you’re a major­ity owner, you may want your chil­dren to take over the busi­ness if you die or become dis­abled. You may also want to limit pro­vi­sions that force you to sell your interest.

All own­ers need to keep an eye on changes in own­er­ship per­cent­age. Two minor­ity inter­est own­ers may con­spire to become major­ity own­ers and force another owner out.

An owner might not be active. If this is the case, then some pro­vi­sions such as dis­abil­ity, divorce and oth­ers might not apply to them. Things change if you have silent owners.

Own­er­ship is also affected by the party who pur­chases the inter­est. If the com­pany pur­chases the inter­est with com­pany funds, then the own­er­ship adjusts accord­ingly and its funds are affected. If the com­pany doesn’t pur­chase the inter­est, then it’s best to allow the own­ers to pur­chase the inter­est rel­a­tive to their per­cent­age own­er­ship in the company.