Pennsylvania Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance

State:
Multi-State
Control #:
US-03467BG
Format:
Word; 
Rich Text
Instant download

Description

In the absence of a valid restriction, a member in an LLC may transfer his/her interest in the LLC (usually expressed in membership units) to anyone. Restrictions on the transfer of membership units are valid if they are not unreasonable. This form provides that the LLC has the right to purchase a members membership units upon his death. The LLC can fund this transaction through a life insurance policy on the members life with the proceeds going to the LLC. The proceeds will then be used to buy the deceased members membership units.


A restriction on the right to transfer membership units is not effective against a purchaser of the unit unless the purchaser knows of the restriction. Such a restriction can be conspicuously noted on the membership certificates.


This form is set up as a Buy Sell Agreement between the LLC and a key member. It applies in the case of the death, disability, retirement or offer of member to sell his membership units during his lifetime.


This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

Free preview
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance

How to fill out Buy Sell Or Stock Purchase Agreement Between Individual Members Covering Membership Units In A Limited Liability Company - LLC - With An Option To Fund The Purchase Through Life Insurance?

Have you been in the situation where you need to have papers for possibly company or individual purposes nearly every day time? There are a lot of legal file layouts accessible on the Internet, but locating types you can depend on is not simple. US Legal Forms provides a huge number of type layouts, such as the Pennsylvania Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance, which are composed to meet state and federal specifications.

When you are currently acquainted with US Legal Forms web site and also have an account, basically log in. Next, it is possible to down load the Pennsylvania Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance format.

Unless you have an bank account and wish to begin to use US Legal Forms, abide by these steps:

  1. Obtain the type you require and make sure it is to the appropriate metropolis/region.
  2. Make use of the Review switch to analyze the shape.
  3. Read the outline to ensure that you have selected the appropriate type.
  4. If the type is not what you`re searching for, take advantage of the Lookup discipline to discover the type that meets your needs and specifications.
  5. If you obtain the appropriate type, just click Buy now.
  6. Choose the costs plan you want, submit the specified information and facts to produce your money, and pay for the transaction utilizing your PayPal or Visa or Mastercard.
  7. Choose a convenient data file file format and down load your backup.

Discover each of the file layouts you may have bought in the My Forms menu. You may get a more backup of Pennsylvania Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance anytime, if needed. Just click on the required type to down load or produce the file format.

Use US Legal Forms, the most substantial collection of legal varieties, to conserve some time and prevent blunders. The assistance provides skillfully created legal file layouts that you can use for a range of purposes. Create an account on US Legal Forms and begin generating your life a little easier.

Form popularity

FAQ

If you bought a life insurance for yourself ? meaning it pays out upon your death ? you can't deduct life insurance premiums.. The IRS considers life insurance a personal expense and ineligible for tax deductions. Employers paying employees' life insurance premiums can deduct those payments, with some restrictions.

One common question we receive when discussing key person benefits is ?What is a buy/sell agreement?? A buy/sell agreement, also known as a buyout agreement, is a contract funded by a life insurance policy that can help minimize the turmoil caused by the sudden departure, disability or death of a business owner or ...

Advantages of using life insurance Life insurance creates a lump sum of cash to fund the buy-sell agreement at death. Life insurance proceeds are usually paid quickly after death, ensuring that the buy-sell transaction can be settled quickly. Life insurance proceeds are generally income-tax free.

As part of the agreement, the business buys life insurance policies on the lives of each owner. The business pays the premiums and therefore exists as the owner and beneficiary of the policy. When an employee-owner dies, that share of the company passes to the heirs of his or her estate.

This is usually referred to as the funding strategy. Buy-sell agreements can be funded through proceeds from life insurance, critical illness, or disability insurance policies. The beneficiary of the policy may be the corporation or the business partners.

Stock Purchase Agreements: the stock in a corporation is sold to a new owner, often making the new owner or the sole or majority owner. Membership Interest Transfer Agreements: the membership interests in an LLC are sold or transferred, often used when a business partner or member of the LLC leaves the business.

The life insurance premiums used to fund a buy-sell agreement are not tax deductible. In a Cross-Purchase Agreement where an individual shareholder purchases life insurance on the life of another shareholder and pays the premium, it is paid for with after-tax dollars.

Along with offering cost savings over a lump sum cash payment, insurance policy funding also helps avoid the interest of a loan. Funding a buy-sell agreement with life insurance can also help make sure the business will have the means to purchase an exiting owner's shares, regardless of timing.

Trusted and secure by over 3 million people of the world’s leading companies

Pennsylvania Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance