If you own a business with a partner or with several partners, you and your partners should have a buy/sell agreement. A buy-sell agreement is a contract between business partners that dictates who can buy a departing partner’s share of the business and establishes a fair price for the partner’s ownership interest. The agreement also describes how to determine a company’s value if all the owners decide to sell. Contact me to discuss if a buy/sell agreement is right for your situation.
One tax issue that is often considered when investing in, or starting, a small business is whether the income generated by the business will cause the business owner to owe self employment tax. Paul would be happy to discuss with you the issue of self employment tax in the context of your small business. To contact Paul about a self employment tax issue, click here.