Buy-sell agreements protect businesses with two or more owners in the event that an owner dies, becomes disabled or voluntarily decides to leave the company. They should dictate who can buy the departing owner’s interest, when, how and for how much. Ideally, these contracts are drawn up when a business is launched, but they can always be entered…
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Partnerships: Tax Considerations When Adding a New Partner
Are you considering inviting an employee or an outsider to participate in your existing partnership? Before making any commitments, it’s important for you and the prospective partner to understand the potential federal tax implications. Important: A limited liability company (LLC) with multiple members (owners) is classified as a partnership for federal income tax purposes — unless you…
Make a Plan to Safely Store Estate Planning Documents
It’s important to create an estate plan so your loved ones will know your wishes regarding your wealth and other issues. The first step is to work with your advisors to draft and sign a will, health care directives, powers of attorney and, potentially, trust documents. But there’s another critical task. You’ll need to find places…