At DiPietro Law Group, PLLC, we know that you have worked hard and had to sacrifice a lot to make your business a success. If you want to maintain your success and ensure your business continues to grow if you become permanently disabled or die, you will need to consult with an experienced lawyer to add buy/sell agreements to your estate plan. With the right buy/sell agreements in place, you can feel confident knowing ownership of your business will transfer smoothly if an unfortunate event were to occur.
What Is the Purpose of a Buy-Sell Agreement?
Business owners use buy/sell agreements to make sure their business operations remain productive when they are no longer around or mentally unfit to run the business. If your estate doesn’t have the right buy/sell agreements, your business partners will likely be confused and chaos may ensue during an emergency situation. This is why it is crucial to consult with our team at DiPietro Law Group, PLLC to discuss all of your options.
How to Prepare Buy/Sell Agreements
If you want to add buy/sell agreements for your business to your estate plan, you will need to answer the following questions:
- How will the business continue operating if one of the owners dies or becomes disabled?
- Will the surviving partner buy-out the deceased or disabled party’s interest or will equal interests be purchased by a number of partners?
- What will the required level of disability be for the buy/sell agreements to take effect?
- Do you think the company should have the option to purchase a deceased or disabled partner’s interest?
- How will the company and respective share of a deceased or disabled partner be valued?
- Will the heirs of the ownership partners have to ratify the buy/sell agreement?
- Is the buy/sell mandatory and binding upon all ownership partners and heirs?
- What are the contingent options for a sale to a third party in the event that a buyout by remaining partners is no longer feasible?
- Does the buy/sell agreement need to be regularly updated to reflect changes in the business or
Common Types of Buy/Sell Agreements
- Cross Purchase Agreement: With this agreement, business owner-partners can be designated to purchase the interest of a deceased or disabled owner-partner. Under this agreement, only the surviving owner-partner has rights to purchase.
- Entity Purchase Agreement: With this agreement, the company can buy the interest of a deceased or disabled owner-partner. Under this agreement, only the company has the right to buy a deceased or disabled partner’s interest.
Speak to Our Legal Team in Fairfax Today
Are you ready to get started protecting your business interests with the right buy/sell agreements? Then get in touch with DiPietro Law Group, PLLC today to discuss your situation with one of our experienced legal professionals. We are committed to helping business owners throughout Fairfax, and we are prepared to get work for you today!
Call (888) 530-4374 to set up a consultation with a lawyer at DiPietro Law Group, PLLC.