Individual entrepreneurs may also need one. For example, if an owner wanted a loyal employee to take over the business after they left, this agreement could settle it. You can also use one to leave the business to an heir – which is often a great way to reduce the inheritance tax that would weigh on the continuation of the business. A draft LLC-Buyout contract provides a framework for the legal paperwork that consists of an LLC buyout agreement. A buyback agreement describes the procedure to follow when a member of your limited liability company (LLC) wishes to sell their stake in the property. These agreements are often compared to marriage contracts for companies. They determine what happens to the ownership of the business when one of the owners (or individual entrepreneurs) undergoes life changes that may influence the continuation of the business itself.