Sole Proprietor Insured Disability Buy-Sell Plans Pt. 2

In business, there are many types of buy-sell agreements to protect owners, the business, partners, shareholders, or family members.  When one person owns a company with no other interested parties, they are considered a sole proprietor.  If this person becomes permanently disabled, the business’ only owner would then be unable to run the business. Therefore, …

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Sole Proprietor Insured Disability Buy-Sell Plans Pt. 1

The disability of a business owner has no legal impact on the ability of a closely-held business to continue to operate.  However, the practical consequences can have a very serious impact on not only the owner but the owner’s family and the employees of the business.  An insured disability buy-sell plan can alleviate the stress …

How an Insured Stock Redemption Buy-Sell Plan Works

A cost-effective and economical method of providing the cash essential to purchase a deceased shareholder’s business interest is a stock redemption buy-sell plan.  An insured stock redemption buy-sell plan words for a corporation by a stock redemption buy-sell agreement paid for with nondeductible life insurance premiums. The Corporation, Shareholders, and Insurance Company First, the corporation …

Corporations: Insured Stock Redemption Buy-Sell Plan pt. 2

Part 1: https://geoffreyjthompson.wordpress.com/2017/07/21/corporations-insured-stock-redemption-buy-sell-plan/ In a closely-held corporation where there are a few shareholders, heirs of a shareholder who dies face a number of problems if no plan is in place. Need for Income Dividends are sums of money paid on a regular basis by a corporation to shareholders from the profits of the business.  In …

Corporations: Insured Stock Redemption Buy-Sell Plan

When a person owns stock in a closely-held corporation, they are often one of a limited number of shareholders.  If a shareholder of a closely held corporation dies, there is often no legal effect on a closely-held corporation.  However, some real and practical consequences can have an adverse impact on the corporation to continue as …

The Mechanics of an Insured Cross Purchase Buy-Sell Plan

The economical and efficient method of a cross purchase buy-sell plan that is funded with life insurance allows a deceased partner’s business interest to be quickly bought by the remaining partners without the having to borrow money, drain business assets, or become involved in a long drawn-out legal battle. When involved in a partnership, if …