Entrepreneurs in Colorado may benefit from understanding more about how equity issues between cofounders may be resolved. There are a number of factors to consider when evaluating whether or not the division of business assets is equitable to all parties involved in creating the enterprise. In most cases, executives may be entitled to more equity than key personnel who have not achieved executive status within the organization yet.
When a Colorado business has more than one owner, the importance of having a legally sound buy-sell agreement in place cannot be stressed enough. Contrary to their name, these agreements have little to do with buying or selling the business. Rather, they have a lot to do with defining the rights of the individual owners by controlling when an owner may sell his or her interest in the enterprise.