Plus, you can rip off the Band-Aid easier if the buy-sell agreement is just one of several contracts, documents and forms on your to-do list for kicking off business operations. Back to top 2.

There are two common forms of buy-sell agreements: In a cross-purchase agreement , the remaining owners or partners purchase the share of the business that is for sale.

When I drafted our agreement, I was only thinking about death at the time but there are many events that can trigger a buy-sell agreement. As you review your own agreement, a good start is to ask ...

If you own all or part of a business--any business--you should know about buy-sell agreements. Unless you plan to be lucky forever, you’d better have one. Without it, a closely held or family ...

1. Ensuring Business Continuity. A buy-sell agreement provides a clear framework for what happens when an owner exits the business. Without one, disputes among remaining owners or heirs may arise ...

There are numerous legitimate business reasons to establish a buy-sell agreement for a closely-held family business.Many of these agreements set the value for estate tax purposes when one of the ...

Money for a buy-sell agreement can be set aside, as long as it is easily accessible. These funds must be kept up for the life of the company and may present a temptation during fiscally tough times.

Pursuant to the buy-sell agreement, the company redeemed Michael’s shares from his estate for $3 million, and Michael’s estate paid federal estate tax on his shares in the company based upon ...

The second type of a buy-sell agreement is called a stock redemption. In this type of an agreement the mechanics work differently. Instead of the partners owning the policies on each other's lives, ...

In general, the business owners must choose between three kinds of buy-sell agreements: an entity-purchase agreement setting up the business itself to buy a deceased partner's stock; a cross ...

Buy-sell agreements often use life insurance policies to fund a potential buyout in the event of a partner's death. A buy and sell agreement may also be called a buyout agreement, a business will ...