Pillar 2 of 6
Ownership & Governance
Could your business survive a
partner dispute, an exit, or a death?
You built this business. You know every corner of it. But do you know what happens to it if your business partner wants out tomorrow? Or if something happens to you?
Most business owners don't have a clear answer. And that silence is one of the most expensive blind spots in business.
The Blind Spot
Ownership disputes are among the leading causes of business failure, and most of them are preventable. The damage doesn't always come from a lawsuit. Sometimes it comes from one partner making a unilateral decision, a family member asserting unexpected rights, or two co-owners who simply can't agree on the direction of the business.
Without the right documents in place—updated, signed, and tailored to your actual situation—you're one disagreement away from a crisis that could cost you the business you've spent years building.
Real Scenario
Real scenario: Two partners ran a successful services business for eight years with no formal operating agreement. When one partner decided to exit, there was no agreed valuation method, no buy-out provision, and no process for resolving disagreements. What should have been an amicable exit became a two-year legal dispute that cost both partners over $300,000 and nearly destroyed the business entirely.
What This Pillar Covers
Pillar 2 examines the structure that governs who owns your business, who makes decisions, and what happens when things change. We look at:
Entity formation and status: Is your business properly formed and in good standing?
Operating agreement or bylaws: Do they reflect your actual ownership and decision-making structure?
Ownership percentages and capital accounts: Are they documented and current?
Buy-sell agreement: What happens if a partner wants out, dies, or becomes disabled?
Valuation methods: How is the business valued in a buyout situation?
Decision-making authority: Who can do what, and are those rules written down?
Succession and continuity planning: What happens to the business if you're not in it?
Corporate formalities: Are you following the basic rules that protect personal liability?
What You Get From This Assessment
WITHOUT this assessment
• No clear process if a partner wants out or dies
• Decisions made by whoever speaks loudest, not by documented authority
• Personal assets potentially exposed because formalities weren't followed
• No plan for what happens if you can't run the business tomorrow
WITH a clean Pillar 2
• A clear buyout process that protects all parties
• Documented authority so decisions don't become disputes
• Corporate formalities in place that protect your personal assets
• A succession plan so the business can survive any transition
Watch the Video
Eric Jeppson explains why ownership and governance are the silent risk most business owners don't think about, until they have to.
Your Next Step
The Pillar 2 Checklist walks you through the key areas of ownership and governance that every business needs to have covered and questions to ask your lawyer. You'll know exactly what you have in place, what's missing, and what to do about it.
Get the Pillar 2 Checklist
Know exactly where you stand on Ownership & Governance. The Pillar 2 Checklist walks you through every critical item, with plain-English explanations, real-world scenarios, and action steps you can take today.
Or book a free 15-minute Legal Health Review → jeppsonlaw.com