Buy sell agreements and buyouts are crucial for every closely held business and business with more than one owner.
Problem: one technique for buy sell agreements is to make a certificate of stated values, but sometimes this happens once every twenty years. Make sure it happens more often.
Make sure you have plans for the spouse in the event of a divorce.
a. Many couples sign a prenup that addresses the business.
b. Have the spouse sign the bottom of the shareholder’s agreement, to show she acknowledges what will happen in the event of divorce or death.
In order to have a buyout agreement accepted by the service, you need to follow certain criteria including:
a. Fixed and determinable price.
b. Must be a bonafide business arrangement (document the reasonableness of it).
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