Succession planning is important for business owners in Florida and throughout the country. This can be true whether an owner plans to sell a company or transfer it after death. There are multiple ways in which a business can be sold. The first method is to sell it outright for cash or assets. If the company is sold for fair market value, there is no need to pay gift or estate tax.
Another option is to use a buy-sell agreement. This type of arrangement sees a person or group of people buy a company after a predetermined event such as the current owner's death. One potential downside is that the company can't be sold or otherwise downsized without the permission of the future buyer. Self-cancelling installment notes may provide a novel way to sell a business and engage in estate planning at the same time.