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Buy Sell Agreements: The Secret To Keep Your Business Alive For Generations
So many of us has joined sites such as this to network and grow our business. We all have dreams about turning our business into an empire. When does that dream turn into a nightmare for you and your family. The answer is when you have a partner who dies, or if you decide its time to retire. What do you do with your source of income, your employees? How do you turn your business to a source of income. How do you answer the tax man. The answer can be as simple as a buy sell agreement.
A buy-sell agreement is a legally binding contract in which the owners of a business set forth the terms and conditions of a future sale or buy back of a departing owner's share of the business. Specifically, buy-sells control when owners can sell their interests, who can buy an owner's interest, and at what price.
Buy-sells can accomplish many objectives, but are primarily used to ensure the smooth continuation of a business after a potentially disruptive event, such as an owner's retirement, incapacity, or death.
Also valuable estate planning tools, buy-sells can provide for the orderly succession of a family business, and for the liquidity needed for payment of a deceased owner's estate settlement costs and taxes. Further, if structured properly, a buy-sell can establish the purchase price as the taxable value of an owner's business interest, avoiding unexpected estate tax consequences at the owner's death.
There are several options to fund a buy sell agreement. Lets say you have printing company and you have a young employee eager to learn and who you may one day hand over the business to. Obviously he doesn't have enough to buy the business and if he can't get a loan then what. There is hope interested in hearing how. Contact me
Vision Planning Group LLC
Louis Fevrin
Financial Advisor/Managing Partner
732-923-1331 ext: 108
973-930-8166
lfevrin@iacadvisor.com
A buy-sell agreement is a legally binding contract in which the owners of a business set forth the terms and conditions of a future sale or buy back of a departing owner's share of the business. Specifically, buy-sells control when owners can sell their interests, who can buy an owner's interest, and at what price.
Buy-sells can accomplish many objectives, but are primarily used to ensure the smooth continuation of a business after a potentially disruptive event, such as an owner's retirement, incapacity, or death.
Also valuable estate planning tools, buy-sells can provide for the orderly succession of a family business, and for the liquidity needed for payment of a deceased owner's estate settlement costs and taxes. Further, if structured properly, a buy-sell can establish the purchase price as the taxable value of an owner's business interest, avoiding unexpected estate tax consequences at the owner's death.
There are several options to fund a buy sell agreement. Lets say you have printing company and you have a young employee eager to learn and who you may one day hand over the business to. Obviously he doesn't have enough to buy the business and if he can't get a loan then what. There is hope interested in hearing how. Contact me
Vision Planning Group LLC
Louis Fevrin
Financial Advisor/Managing Partner
732-923-1331 ext: 108
973-930-8166
lfevrin@iacadvisor.com
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