Buy-Sell Agreements Lawyer
Buy-Sell Agreements Planning Attorney in Spartanburg, Greenville Upstate South Carolina
The buy-sell agreements lawyer at the McQueen Law Firm provides comprehensive corporate and business law services including buy-sell agreements planning, buyout agreements and business continuation agreements to businesses in Spartanburg, Greenville and throughout the Upstate of South Carolina. If you own a corporation, partnership or a limited liability corporation (LLC) one of the most important components in business planning you should consider establishing is a business continuation agreement, or buy-sell agreement. Our buy-sell agreements planning lawyer works with business owners to avoid the potential for disputes and costly litigation by planning in advance of events that likely will trigger ownership change.
What is Buy-Sell Agreement Planning?
Buy-Sell Agreement, commonly referred to as a buyout agreement, is an agreement between co-owners of company that governs what will happen to the business if one of the owner’s dies or chooses to leave the company. The Buy-Sell Agreement designates “triggering events” and provisions for death, disability, retirement, divorce, and voluntary and involuntary transfers (including sales and bankruptcy) of the company. The agreement contains binding clauses that defines the business valuation methodology and provides controls on transfer of ownership interests in the business, who they can sell their interests to and when they can sell their interests.
While the best time for business owners to craft a buy-sell agreement is at a company’s inception, it’s never too late to put one in place. We encourage you to contact the buy-sell agreements planning lawyer at the McQueen Law Firm to discuss your individual situation, financial and tax considerations.
Purposes for Buy-Sell Agreements
Our buy-sell agreement planning lawyer can assist you with properly drafting buy-sell agreement which can be designed and utilized to accomplish the following goals:
- Provides liquidity and identifies a buyer for a departing owner’s shares/interests;
- Avoids conflict and disputes between surviving owners / shareholders and/or heirs;
- Protects business by preventing unwanted persons or parties from becoming owners / shareholders;
- Protects S Corporation status regarding number of and type of allowable shareholders;
- Maintains stability of business operations. Property funded buy-sell obligations ease the potentially significant financial burdens of estate taxes;
- Fixes the value of the business entity for estate purposes.
A properly drafted buy-sell agreement can be the primary succession planning vehicle for a business entity. Additionally, the buy-sell agreement can provide significant benefits in estate planning.
Types of Buy-Sell Agreements
The type of buy-sell agreement depends on various factors such as financial resources of the owners, shareholders and corporation as well as tax considerations.
The most common types of buy-sell agreements are :
- Redemption buy-sell agreement
- Cross-purchase buy-sell agreement
- Wait and see
- Hybrid buy-sell agreement
As with each type of buy-sell agreement there are advantages and disadvantages as well as estate planning and tax considerations. We encourage you to contact our experienced buy-sell agreement lawyer when considering the adoption of a buy-sell agreement.
Plan now! Contact a South Carolina Buy-Sell Agreement Lawyer in Spartanburg, Greenville Upstate SC
Planning in advance for your business can avoid costly litigation and disputes with an ownership change. Our buy-sell agreement lawyer will properly draft a buy-sell agreement for your business shareholders / owners and address trigger events, valuation calculations, funding of obligations and dispute resolution. Don’t wait to plan, contact a buy-sell agreement attorney at the McQueen Law Firm to discuss your buy-sell agreement planning and business succession planning requirements today at 864.585.5021 or online to schedule an appointment.
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