The type of funding method you choose for your buy-sell agreement depends on several factors, including:
- The size of your business
- How your business is structured
- Your business tax bracket
- How many owners/partners have a share in your business, and their ages, tax brackets, and ownership percentages
- How much cash or credit is available to the business or business owners
- How your buy-sell agreement is structured
Depending on how your business is structured and run, you may choose a single funding method or use several in combination when creating your buy-sell agreement.