Does your business have a plan if one of your partners dies, is disabled or wants to leave the business? It should. As soon as a business partnership has an intrinsic value, it’s important to protect that value for each individual partner. A Buy-Sell Agreement can specify trigger events, voluntary or involuntary, and contain all the terms for a situation when a departing partner wants to protect his or her value in the partnership. Such agreements are additional to the business agreements of an LLC or Corporation.

For more information on business and tax planning for your partnership check out Mark’s site at http://www.markjkohler.com.

Related: Why You Should Integrate a Family Trust with Your Business

What Your CPA Isn't Telling You (Book)