Buying a Business? Learn the Tax Implications of Noncompete Agreements
Noncompete agreements are commonly included in business purchase transactions to prevent the seller from competing against the buyer for the term of the noncompete agreement. These arrangements are also sometimes called covenants-not-to-compete or noncompete covenants. Important: Laws regarding noncompete agreements vary from state to state. For example, courts in California generally reject noncompete agreements because…