Compare the use of a limited liability company

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1. Are there estate tax advantages to the seller when using an installment sale? Is the sale included in the seller's estate?

2. Bargain sales and below-interest loans are often used by families. Are there any tax consequences to these techniques?

3. A sale-leaseback could shift income from a family member to another in a lower income tax bracket. Explain this technique.

4. Family limited partnerships (FLP) may be used to transfer assets to children or other family members. Explain how a FLP works and describe the benefits.

5. Compare the use of a limited liability company (LLC) to a FLP.

6. Key person life insurance is often used to protect the business. How should such a policy be owned in order to avoid estate tax on the insured?

7. Describe the advantages of a buy-sell agreement.

Reference no: EM132853747

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