Business Buyout Agreements: Plan Now for All Types of Business Transitions - Softcover

Mancuso Attorney, Anthony; Laurence, Bethany K

9781413322637: Business Buyout Agreements: Plan Now for All Types of Business Transitions

Softcover

ISBN 10: 1413322638 ISBN 13: 9781413322637

Publisher: NOLO, 2016

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Head off disagreements with departing co-owners

It happens to any business that's owned by more than one person: Sooner or later, one or more owners will want or need to leave the business. What will happen to your company if one co-owner wants to retire, files for bankruptcy, or goes through a divorce? Unless you plan in advance, it could threaten the survival of your business.

In short, it's essential that you create a simple but effective "prenuptial agreement" for your company with a buyout agreement (buy-sell agreement). This document clarifies:

when co-owners can sell their interests
the circumstances requiring an owner to sell (personal bankruptcy, for example)
who can buy into the business
how much departing owners can ask for their shares, and
how long continuing owners have to pay the former owner.

Business Buyout Agreements walks you through the creation of your own legal agreement--before issues come up and cause problems. It provides all the tax and legal information you need at every step, such as how to structure the agreement to avoid estate taxes. You'll have a clear, fair agreement--and peace of mind.

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Review:

"Nolo has been publishing excellent self-help legal manuals since 1971." Kiplinger's Personal Finance Magazine
"For more on buy-sells... read Nolo's Business Buyout Agreements." Inc. Magazine
"Business Buyout Agreements takes you through it, step by step..." Accounting Today " Buyout agreements should be part of the initial documents when people start a company together, say Laurence and Mancuso, because it sets out in advance the rights of each owner if someone wants or needs to leave the business. Among the matters they discuss are when and how to allow an owner to request a buyout, when a buyout should be required, how to restrict who can buy into the company, how to value the business and each owner's share, how to set up payment terms to make future buyouts affordable, and how to provide the funds for future buyouts." Eithne O'Leyne, Editor, ProtoView

About the Author:

Anthony Mancuso is a corporations and limited liability company expert. He graduated from Hastings College of Law in San Francisco, is a member of the California State Bar, and studied advanced business taxation at Golden Gate University in San Francisco. He has also been a consultant for Silicon Valley EDA (Electronic Design Automation) companies. He is the author of several Nolo books on forming and operating corporations (both profit and nonprofit) and limited liability companies. His titles include Incorporate Your Business, How to Form a Nonprofit Corporation (national and California editions), Form Your Own Limited Liability Company, The Corporate Records Handbook, and LLC or Corporation? His books have shown over a quarter of a million businesses and organizations how to form a corporation or LLC.

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