What is a Buy Sell Agreement?
A buy sell agreement is a legally binding agreement used by sole proprietorships, partnerships and closed corporations to divide the business share or interest. Every co-owned business needs a buy-sell agreement. The agreement protects all owners or partners when someone wants out of the business, sell his or her shares, goes thru a divorce, passes away, becomes disabled or retires.
Life insurance can guarantee assets will be available to fund the agreement and protect against unintended transfer of ownership.