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If your business has co-owners, you probably need a buy-sell agreement
August 20, 2024
Categories: Buy-sell agreement, Cross-purchase agreement, Liquidation agreement, Redemption agreement
Are you buying a business that will have one or more co-owners? Or do you already own one fitting that description? If so, consider installing a buy-sell agreement. A well-drafted agreement can do these valuable things: Transform your business ownership interest into a more liquid asset, Prevent unwanted ownership changes, and Avoid hassles with the IRS. Agreement basics There are two basic types of buy-sell agreements: Cross-purchase agreements and redemption agreements (sometimes