Business Law Attorney For Your Business’s Needs - (972) 200-3078
Business owners work hard to grow their business and often invest countless
hours and energy into their businesses. With so much dedication, it is
understandable that business owners may worry about the future of their
business, should they become unable to lead the business. Proper planning
and a well-written buy-sell agreement can help you combat the uncertainty
of business ownership. Our Dallas
business litigation attorneys can help you draft a comprehensive buy-sell agreement for your
Learn more about how the
Law Offices of Dan Chern, P.C. can help you protect your business today.
Contact our firm by calling (972) 200-3078.
Why Do I Need a Buy-Sell Agreement?
A number of changes can threaten the future of a business, especially if
a partner or owner:
- Becomes disabled
- Wants to sell their share to a third-party
- Becomes divorced
- Files for bankruptcy
- Changes their employment
A buy-sell agreement can protect your business in the event of these circumstances.
It also can provide an agreed upon a valuation of your business, should
one of these events occur. An agreed-upon value can help prevent disputes
and possible litigation.
Common Valuation Methods:
- Adjusted Book Value
- Capitalization of Earnings
- Annual Agreed to Value
- Sales or Income Formula
The funding of a buy-sell agreement is an important issue for both the
buying and selling parties. The owner who is selling should ensure there
will be the funds necessary to finance the buyout, while those purchasing
and the remaining owners want to consummate the buyout without compromising
the value of the business or themselves.
Common Funding Methods:
- Disability and life insurance
- Sinking Fund in the business entity
- Borrowed funds
- Installment payments
Finally, a buy-sell agreement can also be used to lower estate taxes, should
one owner pass away. A reasonable, yet, conservative, valuation method
can establish the business interest of the deceased owner, which is necessary
for estate tax purposes.
Get In Touch With Our Dallas Business Lawyer - (972) 200-3078
Your business is important to you, and you deserve legal counsel from an
attorney who understands. At the
Law Offices of Dan Chern, P.C., our passionate and experienced lawyer will work for the best interests
of you and your business. Let our Dallas attorney help you plan for the
future of your business. We will take the time to understand your needs
and discuss all your legal options before beginning your case.
Start protecting your business with a
free confidential consultation. Get in touch with our team
online or by calling (972) 200-3078.