Business Buyout Agreements: Plan Now for Retirement, Death, Divorce Or Owner Disagreements, 5th Edition

To ensure a smooth transition following the departure of a partner, it's important that business owners in LLCs, corporations and partnerships write a buysell agreement at the start of their relationship. This book carefully explains each step of the process, providing all the tax and legal information an owner needs to draft a buysell agreement. The only book of its kind to address the lay reader, it includes an interactive, fillintheblank agreement on CDROM. Table of Contents......Page 9 Your Legal Companion for Creating a Buyout Agreement......Page 13 What a Buy-Sell, or Buyout, Agreement Can Do......Page 20 When Should You Create a Buyout Agreement?......Page 28 Does Everyone Need a Buy-Sell Agreement?......Page 29 How to Create Your Agreement......Page 30 When to Seek a Lawyer’s Advice......Page 32 1. An Overview of Buyout Agreements......Page 17 2. Limiting the Transfer of Ownership Interests......Page 35 Transfers of Ownership Interests......Page 36 Using a Right of First Refusal......Page 37 Using Absolute Transfer Restrictions......Page 55 3. Providing the Right to Force Buyouts......Page 59 Changes in an Owner’s Circumstances......Page 60 If an Owner Retires or Stops Working......Page 64 If an Owner Becomes Disabled......Page 77 If an Owner Dies......Page 86 If an Owner Divorces......Page 100 If an Owner Loses a License......Page 105 If an Owner Files for Personal Bankruptcy......Page 108 If an Owner Defaults on a Personal Loan......Page 111 If an Owner Needs to Be Expelled......Page 116 4. Structuring Buyouts......Page 121 Company Versus Co-Owners as Buyers......Page 122 The “Wait and See” Approach Works......Page 127 5. Funding Buyouts......Page 145 Funding With Cash......Page 146 Buying Insurance......Page 147 Making Installment Payments......Page 161 6. How to Set the Buyout Price in Your Agreement......Page 163 Why Choose a Price in Advance?......Page 164 What Valuation Methods Are Based On......Page 166 How Our Valuation Provisions Work......Page 169 Agreeing on a Fixed Price (Valuation Method 1)......Page 171 Using a Buyout Formula......Page 176 7. Choosing Payment Terms for Buyouts......Page 199 Balancing the Interests of Buyer and Seller......Page 200 Lump-Sum Cash Payment......Page 202 Installment Plans......Page 203 Customized Schedule of Payment......Page 209 Creative Ways to Pay......Page 210 8. Completing and Updating Your Buyout Agreement......Page 213 Finalizing Your Buyout Agreement......Page 214 Resolving Buyout Disputes in the Future......Page 224 Binding Future Owners Under Your Buyout Agreement......Page 234 Updating Your Agreement......Page 235 9. Income and Estate Tax Issues......Page 239 Income Tax Issues......Page 240 Estate Tax Issues......Page 257 10. Lawyers, Tax Specialists, and Resources......Page 281 How to Find the Right Lawyer......Page 282 Finding the Right Tax Adviser......Page 287 Legal Resources......Page 288 Appendix A. How to Use the CD-ROM......Page 293 Installing the Files Onto Your Computer......Page 295 Using the Word Processing Files to Create Documents......Page 296 Forms From the CD-ROM......Page 299 Appendix B. Buyout Worksheet......Page 301 Appendix C. Buyout Agreement......Page 311 Web Resources......Page 0 Related Products......Page 351 Everything partners need to create a "business prenup" that will protect a business if someone leaves. If you're like many entrepreneurs, being in business means working with one or more co-owners. But what will happen to your company if a co-owner: wants out of the business? wants to retire? goes through personal bankruptcy? wants to sell his shares to someone else? goes through a divorce? passes away? To make sure there's a smooth transition following someone's departure, it's essential that you create a sort of "premarital agreement" for your business with a "business buyout agreement" (or "buy-sell agreement"). This legal document clarifies when co-owners can sell their interest, the circumstances when someone must sell, who can buy into the business and what price will be paid.Business Buyout Agreements walks you through creating your own contract, which is included on CD-ROM and as a tear-out. It provides all the tax and legal information you need at every step. Forms from the CD-Rom are available under Appendixes B&C*The CD-ROM is not included with the digital version of this book. Everything partners need to create a business prenup that will protect a business if someone leaves.

If you're like many entrepreneurs, being in business means working with one or more co-owners. But what will happen to your company if a co-owner:
-wants out of the business
-wants to retire
-goes through personal bankruptcy
-wants to sell his shares to someone else
-goes through a divorce
-or passes away?

Business Buyout Agreements walks you through the creation of a legal contract -- a sort of premarital agreement for your business -- that protects everyone's interests. This document will help ensure a smooth transition following someone's departure. Clarify:
-when co-owners can sell their interest
-the circumstances when someone must sell
-who can buy into the business
-what price will be paid

Business Buyout Agreements is updated with the latest laws, and includes a complete business buyout agreement on CD-ROM. A guide to business buyout agreements that covers limiting the transfer of ownership interests, structuring, funding, setting a price, choosing payment terms, income and estate tax issues, and other related topics. Includes a CD-ROM