Hello friends! I'd like to write today about buy-sell agreements, aka Partnership Agreements. The contracts all business people develop when they start a business, right? This document is an important piece of your business plan. In this document, you and your partners will decide what happens if one of you: becomes ill or dies, divorces, or quits. This document spells out, prior to any event happening, how the partners will handle it. It determines who will be the tax partner and what type of accounting you will be using. It can address all the issues that you feel are needed, so it is totally up to you what you want put into this contract.
Speaking from my own personal experience, peoples lives can change in a matter of minutes and that can leave a remaining partner to deal with issues they aren't prepared to deal with. In my own case, my partner and I were 50-50 owners, when my partner was injured I was left with twice the work and only half the income for doing it. I had to handle clients that were not used to dealing with me and unfortunately my partner didn't keep records on the status of their cases. This made for some very long tough days and frustration for our clients as well.
Please consider a Buy-Sell Agreement if you are in a partnership with someone or considering it. We help business' with all kinds of documents and would love to have your business.