Sole Proprietor Buy-sell Plans -

Life insurance ensures the buyer has the funds to fulfill their legal obligation to purchase the business.

: Death benefits paid to the buyer are generally income-tax-free. sole proprietor buy-sell plans

: Premiums paid as bonuses are taxable income to the employee. Life insurance ensures the buyer has the funds

Unlike traditional buy-sell agreements between multiple partners, a sole proprietor agreement usually involves an external buyer: sole proprietor buy-sell plans