Products tagged with 'sole proprietor business'

Succession planning is vital to the survival of small businesses. This Sole Proprietorship Buy-Sell Agreement can help ensure the continuity of yours.

What is succession planning?

Succession planning is a strategy to determine what will happen to your business when you retire, die, or become incapacitated. A succession plan sets out who will take over operating and managing the business, and how and when that transfer will take place. 

Scope of the Buy-Sell Agreement

This is a simple form of buy-sell agreement between the owner of a sole proprietorship and an employee who wants to purchase the business when the owner dies. Both parties want the business to continue to exist.

Key Points of the Agreement

• On the death of the proprietor, the executor or administrator of the estate will formalize the sale of the business to the employee.
• The employee will finance the purchase through proceeds of a life insurance policy on the life of the proprietor.
• The purchase transaction will include all real property, accounts receivable and other assets owned by the business.
• The parties will jointly determine the value of the business at the end of each fiscal year.

Format and Jurisdiction

This is a downloadable MS Word template from MegaDox.com. It is fully editable and can be customized to fit your specific requirements.

The form is generic legal contract and does not contain specific references to the laws of any country. It can be used in most common law jurisdictions.