As a family business begins to plan for its longevity, a buyers/sellers agreement can play a very critical role. These agreements provide a thorough description of how ownership will transfer at the time of the death or incapacity of the business’s owner. While buy-sell agreements provide a deal about how the heirs of a deceased or disabled owner will receive assets from a company, clients often wonder whether they need a buy-sell agreement. The answer to this question is that these agreements are suggested for any small or mid-sized company that has more than one owner. Also, in situations where a company has more than one shareholder, buyers - sellers agreements are recommended. To determine the value of a buy-sell agreement, it is often a wise idea to retain the assistance of a skilled probate attorney.
Particular Types of Businesses That Need a Buyer/Seller Agreement
While generally, buyers - sellers agreements are recommended for many different types of business groups, there are some specific kinds of companies that should choose to use a buyers - sellers agreement. These particular groups include the following:
Business Owners Who Want to Fix a Fair Price in the Worth of a Company. Buyers - sellers agreements allow business owners to determine the fair price of a company and eliminate potential disputes. This element can advantageous to both buyers and sellers of a business.
Buyers Who Want to Select Their Own Partners. In some cases, if a buyers - sellers agreement does not apply to the sale of a business, partial ownership rights in the business can be transferred to third parties not chosen by the buyer of the business.
Individuals Who Want to Limit the Rights of a Former Partner or Business Owner. A large number of buyer -sellers agreements state that a previous owner must sell back his stake to the company if the individual ever works for the enterprise again.
People Who Would Like To Reduce the Amount Owed in Estate Tax. The method contained in a buyers - sellers agreement that is used to determine the value of a company has a substantial effect on estate taxvaluation. The owner of a business might believe that the company is worth much less than the federal government does. If an individual has a valuation method provided in a buyers - sellers agreement, an individual can then use the method contained in that agreement as evidence of how a company should be valued.
In addition to these various categories, there are many other situations in which an individual might particularly benefit from a buyers - sellers agreement.
Obtain the Assistance of a Skilled Colorado Estate Planning Attorney
Buyer -seller agreements are an important part of many business transactions in Colorado involving corporations, limited liability companies, and partnerships. At Rocky Mountain Disability Law Group, our legal counsel views buyers - sellers agreements as a critical part of the lives of individuals who wish to transition into retirement. Fortunately, our legal counsel has significant experience helping individuals who need buy-sell agreements written. Do not hesitate to contact our skilled lawyers.
Contact our practice online or call us at (866) 476-4558.