How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard - Bizlaw Your Own Question
Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10585
Experience:  30 years of corporate, litigation and international law
18695994
Type Your Business Law Question Here...
Richard - Bizlaw is online now
A new question is answered every 9 seconds

I am buying out my business partner, we are 50% partners. i

Customer Question

I am buying out my business partner, we are 50% partners. i have a loan approved for the bulk of the money. At what point can I take money from the business for the balance?
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 1 year ago.
Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. Once you and your partner have agreed on the price and you have the loan. If the funds in the business are sufficient to pay the balance you can take the money from the business.If I have answered all your questions, please positively rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.
Customer: replied 1 year ago.
Your answer is unclear, the buyout is for $500000, loan is for $400000. Can I take the balance $100000 from the business to pay the balance before or after settlement, and how will this affect each partners taxes
Expert:  Richard - Bizlaw replied 1 year ago.
You can take the $100,000 from the business to pay the balance. The payment should be made at the time the sale is effective. If the closing date of the sale is 4/30 you would make the payment on or after that date. On that date, the selling partner's interest is terminated and his right to share in the profits and losses of the business terminate as of that date. All assets in the business are yours. Whatever the profits and losses of the business are as of that date is what he participates in for tax purposes. If you have any other questions, please let me know. If not please highly rate my answer as that is how I get credit for working on your question.
Expert:  Richard - Bizlaw replied 1 year ago.
I answered your question however, it appears that you forgot to rate my answer. Please highly rate my answer as that is how I get credit for working on your question.