Buy / Sell Protection
In the beginning everyone feels their partnership is a match made in heaven and will last forever. However, along comes reality…


Every private company should have a Unanimous Shareholder Agreement (USA) and Buy/Sell protection should be an integral part of every USA.

You may be best friends with your partner(s) now, but are you sure that will be the case forever?

  • What happens if you each have different views on how and when to grow the company?
  • If different ages, what happens when one partner wants to retire?
  • If your partner dies, do you want to be in business with their spouse/kids?
  • If one of you becomes disabled, can the company still pay their salary indefinitely?

Structure and Tax Implications

How should your USA be structured?

Are the shares purchased by the remaining partner or are they redeemed by the company. There are tremendous differences in the tax implications of each approach.

View our Overview of Buy Sell Agreements.

Funding Options

  • Can you afford to purchase the shares of your partner?
  • What is the net cost of buying the shares with cash, borrowing the funds?
  • If you use a life insurance plan, who should own the policy?
  • What is the best type of insurance?
  • Can you make a policy serve 'double-duty'.
  • Have you considered disability insurance or critical illness to fund a buy/sell?

There is a myriad of questions to be considered. TOLCO Financial $trategies has helped many companies structure a well-designed, affordable plan. We work with your lawyers to develop a plan that best suits your needs.