If you and partners own a shared company, it’s likely you’ve heard these questions before: Do you want to be in business with a partner’s ex-spouse? Do you want to be in business with a bank after your partner’s bankruptcy? Do you want to be dismantling your business because of a feud between two partners? The answers are undoubtedly NO, but it’s likely you haven’t put pen to paper and had an attorney prepare a Buy/Sell Agreement for just these scenarios.
The time to do it is right now.
The Law Office of Finely Stetson encourages partners to prepare a Buy/Sell Agreement just as soon as the shared business begins. We can help you navigate these issues:
We’d argue this is the most important topic to be addressed in your business succession plan. Many business owners would prefer a specific formula for determining value. For instance, “four times annual earnings.” But some industry sectors need specific valuation plans with professional valuation experts. We can expertly guide you no matter what type of valuation your business needs.
2. Ground Rules
3. Tax Implications
Your business succession plan should be mindful of the tax implications that arise upon death of a partner or restructuring the company. Our attorneys will advise you on the different tax consequences of a “redemption” agreement or “cross-purchase” agreement. We will utilize careful planning to give owners and their heirs the liquidity needed to pay estate taxes or other expenses.
schedule a visit with us to strategize a game plan for all of your Buy/Sell Agreement needs.
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