Sole Proprietor Buy-sell Plans Apr 2026

: Business-paid premiums are generally not tax-deductible. Essential Plan Components

Life insurance ensures the buyer has the funds to fulfill their legal obligation to purchase the business. sole proprietor buy-sell plans

: The business often "bonuses" the premium payments to the employee, who then pays the insurer. Tax Considerations : : Business-paid premiums are generally not tax-deductible

: Life insurance is the primary funding mechanism because it provides immediate cash when needed to activate the sale. How the Funding Works sole proprietor buy-sell plans