Centauri Law Group P.C.
Call for a Consultation Today We Do Not offer free consultations
1-877-777-6790
Experienced Corporate Representation

Protect yourself and family with a buy-sell agreement

Contracts are an important part of any business. They not only help to ensure the legitimate operation of a business, but also capture the intent of various operations and procedures. 

For a business owner, a buy-sell agreement may be essential to protecting her or himself and the family. As you determine the contracts you need for your business, consider the benefits and essential elements of a buy-sell agreement.

Coverage during divorce

A proper buy-sell agreement should denote how to handle assets of the business during a business owner's divorce. Without proper agreement in place, a disgruntled spouse may try to gain control of business assets. For those business owners working with partners, this may cause significant issues. The agreement may also protect against aggressive creditors who may try to seize company assets in lieu of payment.

Death or incapacitation

In the case of death or incapacitation, business owners' families can benefit from a buy-sell agreement that denotes how the company must handle their interest in the business in such instances. This helps to guard against the depreciation of stock the family receives from the business and allows them to reap the reward of the owner's hard work and contributions.

Key elements

Along with complying with California's contract laws, it is important individuals include specific aspects of a buy-sell agreement to ensure it provides proper coverage. There are five main elements to consider when formulating this agreement:

  1. The best buyer
  2. Necessary buyout triggers
  3. Proper buyout terms
  4. Calculation for buyout price
  5. Structure that avoids tax surprises

Along with these things, individuals may choose to add personal stipulations and requirements to fit their particular business or situation. A knowledgeable attorney may assist in proper verbiage and making sure it is legally binding.

As you can see, a buy-sell agreement may be quite beneficial, and it can also be complex. It is important individuals take the time to fully understand what the agreement entails and requires, then make an appropriate decision to meet their needs.

We hope the above provides an insight into this business compliance practice. Please feel free to contact our firm if you have any questions. This is an advertisement for legal services. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

No Comments

Leave a comment
Comment Information

This is an advertisement for legal services.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.

Email Us For a Response

Tell Us How We Can Help

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Our Office Location

Centauri Law Group P.C.
15615 Alton Pkwy
Suite 175
Irvine, CA 92618

Phone: 949-945-0414
Map & Directions