A buy-sell agreement is a legally binding contract which protects the interests of the company’s owners and permits the business to continue in the event of the death, disability, or retirement of a business owner. A buy-sell agreement, commonly referred to as buy-sell arrangement, is drafted by an attorney and can be implemented with all forms of companies including, partnerships, limited liability companies, and corporations. A buy-sell plan can be thought of as a written agreement to help a business navigate a successful business transition.
A buy-sell agreement is a legally binding document that stipulates what will happen to a business when a business owner or partner becomes disabled, dies, retires or decides to sell his or her interest in the company. Buy-sell planning is an extremely important part of long term business continuation planning. The common types of buy-sell plans include the stock redemption agreement or entity plan, the cross purchase buy-sell agreement and the wait-and-see buy-sell agreement.
Did you know you can capitalize on your current buy sell agreement with buy sell insurance? We sell insurance policies that can include current buy sell agreements between partners. Our universal life insurance is premium financed which means that you do not pay with out of pocket funds. As opposed to a traditional life insurance policy we use your assets to create new wealth.
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Posted Friday, August 06 2010 8:20 PM
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