In this guide, we will explain what buying out a business partner means, how to prepare to buy out a business partner, and more. In order to buy out your business partner, the two of you need to come to an agreement about how much the business is worth.Learn about buyout agreements and their importance in business ownership transfers. Consult top attorneys at Jimerson Birr for expert guidance. Typically, the purchase is considered a capital transaction, which carries a lower tax rate than if it were classified as ordinary income. Business assets are not considered legally transferred without a properly executed Business Purchase Agreement between the seller and purchaser. Create a Buy-Sell Agreement in minutes with step-by-step instructions. Use this contract to protect the shares of a business in unforeseen circumstances. In most cases, a business partner can't push you out. But there are ways that a business partner might encourage you to leave your business.