buyout

Q.: I own 51 percent of an LLC. If I plan to split with my business partner what am I responsible to pay him?   Read on to find out . . . !

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It’s never a pretty sight when a business partnership has to be dissolved. Even uglier is what happens when you put in the time and effort to create a partnership agreement, only to find that the terms you included create more confusion than clarity. The cleverly-named blog, New York Business Divorce (why didn’t I think […]

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So you’ve identified the exit events that can trigger a buyout. Yippee-ki-yay. Is that the end of the exercise? Of course not. (You knew it wouldn’t be, didn’t you?). Identifying when a buyout situation might arise is one thing. Having the funds for the payout is quite another. Chris Mercer sagely points outa number of […]

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Q.: Can a partnership use a partner’s family term life insurance policy as a business expense, with the intention of using the policy as a way to buy out the spouse’s interest in the business?   Read on to find out . . . .

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Post image for Basic Training: Capital vs. Sweat Equity: What’s a Fair Buyout?

Q: I’m in a situation where one owner is an active “sweat equity” owner; the other is inactive but provides financial capital. I’m the sweat-equity owner who has put in the hours and grown the business, while the other has been gone for months at a time. I am now in the process of trying […]

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When a shareholder in a multiple-owner company decides to withdraw from a corporation, her shares need to be transferred.  But to whom?  And how?  It depends on how the shareholder’s agreement is worded. Two scenarios are: A shareholder retires and sells the shares to the remaining shareholder(s) A shareholder resigns and sells the shares back to […]

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