Legal Question in Business Law in Washington

Prevent From Purchasing Company

I really do not know which area of law this goes into. I do not own a business or a company right now, but some day I want to. This is for future planning: I was wondering how do you prevent someone from buying out your business or your company if you do not want them to? Like it you want to stay in business and not be taken over by another company. Is there a way from letting them buy you out? I would like to know for all 50 states if that is possible, not just for Washington State alone.


Asked on 2/17/08, 7:41 pm

1 Answer from Attorneys
Susan Beecher Susan L. Beecher, Atty at Law

Re: Prevent From Purchasing Company

There is a very simple answer, applicable for all 50 states; don't take your company public. Very few small businesses are publicly traded anyway. All others are "closely held". No one can buy out your company unless a majority of the ownership interest (shareholders if a corporation, members if an LLC, partners if a partnership) decides to sell. If your company is not publicly traded, you will always know who those other owners are and you can work with them to make sure everyone stays on board. And, if you own the majority of the interest in the company yourself, you're pretty much untouchable.

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Answered on 2/17/08, 8:17 pm


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