All businesses can benefit from buy-sell planning.
- It provides a definite market for transferring the ownership interest.
- It specifies a set or determinable price.
- It may provide some or all of the funds necessary to execute the agreement.
- It maintains “closeness” of the business by restricting and planning who/what can receive the business interests.
- It may provide liquidity to pay estate taxes (due 9 months from date of death.)