BUY-SELL AGREEMENTS in California
Serving clients throughout the Conejo Valley Area
Buy-sell agreements or buyout agreements, are agreements between co-owners of a business. These agreements are applicable when one of the owners dies, becomes disabled or departs the business.
The agreements are usually between partners of a partnership, shareholders of a corporation or members of a limited liability company. They are typically used in smaller closely held businesses.
The inclusion of buy-sell agreement as part of estate planning for a business owner is important. As the business often is the most valuable asset a person owns, it is important to make accommodations for the funding of a buy-out of the deceased owner’s interest by the remaining business owners. This is usually accomplished by life insurance or other funding methods.
A buy-sell agreement is a complex business contract requiring an experienced business or estate planning attorney. The failure to obtain a buy-sell agreement or a poorly drafted one can cause huge problems upon the death of one of the business owners or a break up of the business owners.
Contact us to set up an appointment with attorney Kent W. Keating.
