What will happen to my business (and all my hard work) if something happens to me?
What might my tax consequences be if I sell my business or buy another?
Did you make plans?
Your business, collection of classic cars or grandfather’s pocket watch could all end up being controlled by people you never met who have no real interest in your family.
Unless you PLAN.
The challenge: The value of a business could be substantially more than your designated purchaser has on hand when the business needs to be transferred.
What if something happens to one of the business partners?
Do you have a plan? If you have a plan do you have a way to fund the plan?
You may have agreed to buy out your partner’s spouse if something happens but do you have the cash set aside? Would you rather be business partners with your (now former) business partner’s spouse? It is at this point you realize the business agreement you wrote on a cocktail napkin is not sufficient.
You need some input.
There are funding and transfer options. (see also Succession Planning)
Buy-Sell Agreements include:
- Cross Purchase Buy-Sell
- Trusteed Cross Purchase Buy-Sell
- Wait and See Buy-Sell
- Disability Buy Out Buy-Sell
- Entity Purchase Buy-Sell
- No-Sell Buy-Sell
- Unilateral Buy-Sell
- Stock Redemption Buy-Sell
Please seek guidance!
You worked too hard and too long to let your business disappear following unfortunate circumstances.