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.