Allen Buy & Sell Agreements in Allen, TX

Experienced Business Lawyers in Texas

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 Allen business litigation attorneys can help you draft a comprehensive buy-sell agreement for your business’s future.

Receive your free consultation on buy-sell agreements in Allen by calling (972) 200-3078 or contacting us online today!

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:

• Dies
• Becomes disabled
• Wants to sell their share to a third-party
• Retires
• 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
• Appraisal
• 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 Allen 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 Allen 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 confidential consultation. Get in touch with our team online or by calling (972) 200-3078.