If you own a business of any size, this is likely one of the most important things in your life. Like all of your important assets, you want to have the confidence in knowing that it will be taken care of after you retire, become unable to make decisions, or pass away. Even if you’re young and in good health, you don’t want to risk not having a succession plan in place. Business succession planning can be complicated, which is why you’ll need assistance from an estate planning attorney.
At Tressler & Associates, we know how important owning a business is, and are here to help ensure that your departure from your business is handled the way you want.
Your business succession plan provides your employees and any partners with guidelines for how you want the business to continue after you leave the company. Business owners all have different intentions they want for the businesses they’ve spent years growing. Knowing that, you can’t assume that others know your wishes or will respect them without a business succession plan clearly stating your plans.
Every business is unique, but here are a few things you’ll need to consider when creating your business succession.
You may have different succession plans for different possible events. If you’re planning to retire, you should have a succession plan that dictates how you want this to be handled. This is known as an exit-succession plan and allows you to choose exactly when you’d like to retire from the company. However, you should also have a succession plan to use in the event that you pass away or become disabled while still with the business. This is a death-or-accident succession plan.
Choosing a successor for your business is not always easy. You need to consider what’s best for your business, which might not always be the people you’re closest to. There may be many choices for a successor, which does not have to be limited to your employees or partners. Some may choose family members or an outsider.
Every business succession plan should include an accurate value for the company. There are various ways to value a business, so you need to ensure yours is being done correctly. To ensure your information is correct, you can hire an appraiser to figure this out. Of course, your business’s value will change over time, which is why you should revisit your business succession plan to ensure it’s always up to date.
Business owners have many different choices for how they want to transfer ownership of their business, and each can vary greatly. You might have partners you need to work with regarding how your ownership will be transferred to someone else. Some might choose to leave their ownership as a gift to someone else. Maybe your wish for the business after you pass is to sell it off or merge it with a competitor.
You might not be planning to leave your business any time soon, but it’s never too early to start planning, especially when it comes to protecting your business’s future. There’s a lot to consider when you’re creating a business succession plan, and you want to ensure nothing is missed. At Tressler & Associates, we know what a business succession plan needs to contain to ensure that your wishes are followed. Don’t risk something happening to the business you’ve worked so hard for by not working with an experienced estate planning attorney.
Secure your business’s future and contact Tressler & Associates today.
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