North Carolina Business Attorneys Provide Assistance in Buy-Sell Agreements

Business Law Firm Focuses on Buyout Agreements in North Carolina

A buy-sell agreement, also known as a buyout agreement, is necessary whenever a co-owned business is formed. This type of agreement will protect business owners when one co-owner wants to leave the company, and also protects the co-owner who is leaving.

How Does a Buy-Sell Agreement Work?

A buy-sell agreement functions in a similar way to a prenuptial agreement when a co-owner:

• Leaves the business
• Decides to retire
• Goes through a divorce
• Opts to sell his shares to someone else
• Passes away

The buy-sell agreement will also protect the interests of all the parties by setting the price and terms of the buyout.

Other Advantages of Buy-Sell Agreements

Buy-sell agreements have also been used to successfully lower estate taxes in businesses where at least one co-owner plans to leave their interest to heirs who will remain active in the business.

For estate planning purposes, the key is setting a conservative price or valuation formula for the business in the buy-sell agreement. This is a way that a buy-sell agreement can help a family business owner pass a business on to his children or other relatives without burdening them with unnecessary estate taxes.

Contact Our North Carolina Business Law Firm Today

Do you need legal help with a buy-sell agreement in North Carolina? The experienced attorneys at Law Offices of Robert Crawford represent business professionals throughout North Carolina, and our skilled attorneys conduct thorough reviews of all buyout agreements. Contact our firm online or call 919-296-8508 to schedule your initial consultation today.