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.

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 ...

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 ...

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 ...

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 ...

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, ...

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 ...