Maritza Ebanks: Well if you are going to own more than 5% of the shares, you need to know everything. You need to sit in on meeting with the lawyer, etc. Legally, you are an owner. You also really should get EVERYTHING in writing. Good luck.
Maryland Gareau: You need to know who owns what. You need a comprehensive shareholders agreement that determines how you get out when things blow up. If you are equal shareholders, there is a good chance that there will come a time when you will disagree and you will need a method of resolving it. My preference is to have a mandatory put-call provision (also called a Texas shootout) in the shareholders agreement. That way, the parties can part ways and cash out. The way it works is that one party gives a price and the other party decides whether to buy out the first party's interest or to sell his interest to the first party. It's fair and it works. You also have issues relating to death, transfer of shares, s-corporation ! status, etc....Show more
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