Attorney Consultation for Buy-Sell Agreements in Houston and Austin
Our team of attorneys at AndrewsMyers has helped many business owners in the Houston and Austin area with buy-sell agreements. We help by ensuring the document protects the interest of both parties, as a poorly written contract can lead to loopholes and unbeneficial circumstances. In addition, hiring a lawyer ensures that you thoroughly understand exactly what is written within the terms of the agreement. Furthermore, our team of attorneys can write the buy-sell agreement for you to ensure the agreement protects your assets.
What is a Buy-Sell Agreement?
A buy-sell agreement is a contract between co-owners of a business that dictates when they can sell their respective shares. This type of contract is typically enforced in the event of death, divorce, disability, or bankruptcy. Below are some common buy-sell agreements our team has assisted in the past.
Types of Buy-Sell Agreements Our Lawyers Can Assist With
- Real estate buy-sell agreements
- LLC buy-sell agreements
- Partnership buy-sell agreements
- Land buy-sell agreements
- Real estate partnership buy-sell agreements
- Business buy-sell agreements
Common Questions About Buy-Sell Agreements
- What are the key elements of a buy-sell agreement?
- Valuation Clause – A valuation clause in an insurance contract specifies an exact dollar amount to be reimbursed in the event of a loss.
- Funding the Buy sell
- Identifying the Parties
- Listing the quality events
- Tax Considerations
- Is a buy-sell agreement necessary?
- A buy-sell agreement is necessary to protect the assets and interest of the business owner in the event of retirement, death, or divorce. Unfortunately, events happen suddenly in life so it’s a great way to be prepared.
- What type of insurance is used in a buy-sell agreement?
- Businesses can implement the provisions of a buy-sell agreement through life insurance, which will provide liquidity both to the business and to the owner’s family when the owner dies.
- What triggers a buy-sell agreement?
- Death of an owner
- The disability of an owner.
- The Voluntary employment termination of an owner who is also an employee.
- The bankruptcy of an owner
- Divorce of an owner
- The desire of the owner to just cash out and move on
- Expulsion of an owner
- How is a buy-sell agreement funded?
- A few ways to fund your buy-sell agreement can be cash, installment payments, taking a loan, or a sinking fund. However, most business owners choose life insurance as it’s the most cost and tax-efficient way for an owner to leave the business.