If you are a business owner, it`s important to have a corporate buy sell agreement in place. This agreement outlines what should happen to the business if one of the owners dies, becomes disabled, or decides to leave the company. It also helps to ensure that the remaining owners have control over the business and its assets.

Here are some key things to know about corporate buy sell agreements:

1. They can be funded in different ways. There are several ways to fund a buy sell agreement, including through life insurance policies or by setting aside a specific amount of cash reserves. The method chosen will depend on the size and structure of the business.

2. They can prevent conflicts between partners. A corporate buy sell agreement can help to prevent disputes between business partners. It outlines the terms of a potential sale or transfer of ownership, which can help avoid conflicts over valuation or control.

3. They can protect the business. If one of the owners dies or becomes disabled, the remaining owners may want to buy out their share of the business. A buy sell agreement can help to protect the business from potential external buyers or creditors who may try to take advantage of the situation.

4. They can have tax implications. There may be tax implications associated with a buy sell agreement, so it`s important to consult with a tax professional before finalizing the agreement.

5. They should be reviewed regularly. Over time, the circumstances of the business and the owners may change. It`s important to review the buy sell agreement regularly to ensure that it still reflects the wishes of the owners and that it`s still the best option for the business.

In conclusion, a corporate buy sell agreement is an important document that can help protect the business and its owners. It`s important to work with a qualified attorney to create a buy sell agreement that meets the needs of the business and its owners, and to review it regularly to ensure that it continues to be effective.