How do you typically set up cross sell agreements between shareholders. How do you calculate value? Do you typically fund a life insurance policy? If so, do you recommend having the policy in the companys name or the individuals?. My client is an elctrical company set up as an S Corporation with two shareholders. Any help would be appreciated.
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There are all kinds of articles and opinions on the subject. I don't recommend tax accountants to get involved in something you have not been trained to do. If you want to stick your neck out on the line and expose yourself to liability issues by expressing an opinion to your client, you need to study up big time on the subject.
The following link is one of many articles you could read to get a brief overview on how to structure these things.
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give me your client's contact info
I'll set him/her up with a great contract attorney who will set up the agreement, we'll do a business valuation to determine each one's ownership value, and I'll sell them the life insurance policy.
I'll even buy you a steak dinner for your trouble!Comment
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I am working with an attorney... He simply wanted my input. I have my opinions. I was just curious what yours were.
Anyone else?Comment
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policy ownership is an issue for the attorney and the advisor
in certain cases individual ownership is best, in certain cases company ownership is best. you have to review the situation and determine an answer that is best.
i wasn't trying to be an a-- in the last post.
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