Maryland Buy Sell Agreement Services

Whether you are expecting to leave your company or not a buy sell agreement is an essential binding contract for a business owner that can make the transfer of ownership a seamless process should the need arise.

If the business is a partnership, consideration should be given to the lifetime agreement among business owners as to how to dispose of the business.

Planning Needs Financial Group, financial planners can help you find the best buy sell agreement that is well crafted to suit the unique circumstances of your business.

Entity Plan – The corporation or partnership buys the interest of the deceased business owner. This type of arrangement is often used when there are several owners.

Cross-Purchase Plan – Each surviving owner agrees to buy the interest of any deceased owner.

Advantages of Buy-Sell Agreements

  • Guarantees a buyer for an asset that probably will not pay dividends to one’s heirs.
  • Can establish a value for federal estate tax purposes that is binding on the IRS.
  • Spells out the terms of payment and is easily funded with life insurance and disability insurance, if desirable
  • Provide a smooth transition of complete control and ownership to those who are going to keep the business going.

Potential Problems Without a Written Agreement

  • Heated conflicts among the remaining owners and the decedent’s family;
  • Unhappiness on all sides, and sometimes litigation;
  • Delays in settling the estate and continuing business growth;
  • Loss of customers; and
  • Possible liquidation of the business which may bring less than full value.

The Solution: A Written Agreement (and Cash)

Taking the time now to see that the business will pass in an orderly manner at time of death will benefit
all parties and their heirs. A written agreement can provide:

  • An orderly transfer of the business;
  • A mutually agreeable sales price;
  • Mutually agreeable terms of sale;
  • A value that is binding on the IRS for federal estate tax purposes; and
  • Stability for customers, staff, creditors and investors.
  • An agreement which is favorable to all parties can be more easily drafted prior to a crisis.

Place the future of your business in agreement, Contact Planning Needs Financial Group
today for a FREE consultation on how we can help you with your business financial planning!

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