North Carolina Business Attorneys Provide Assistance in Buy-Sell Agreements

Rocky Mount, Wilson, and Greenville 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, and comes into play if a co-owner:

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

The buy-sell agreement also protects the interests of all the parties in the agreement 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 after they pass away. 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 their children or other relatives without burdening them with unnecessary estate taxes.

Need Help Creating a Buy-Sell Agreement? Contact Our North Carolina Business Law Firm Today

Do you need help with a buy-sell agreement in North Carolina? The experienced business law attorneys at Law Offices of Robert Crawford represent business owners throughout the Rocky Mount, Wilson, and Greenville areas, and will conduct a thorough review of all buy-sell agreements. Contact our firm online or call 919-296-8508 to schedule your initial consultation today.