It’s Never Too Early to Plan for the Future
Small businesses rely on their owners to stay afloat. This means that a business can easily die with its owner if proper precautions are not taken to ensure that a successor has been established.
If you’ve invested the time, money and effort into building your business from the ground up, you probably want to leave it behind as a legacy and resource for your children and grandchildren. Succession planning plays a vital part in that.
What Does a Business Succession Plan Entail?
A succession plan is a legal road map for the future of a business. It establishes who will take over your business in the event of your death. It also allows others to step in to manage your business affairs in the event that you become too sick, injured or otherwise incapacitated to handle the business.
Several key issues can be addressed in a succession plan:
- Who will take over the business? Will it pass to a family member or a partner? If it will be sold, how will the proceeds be divided?
- Who will take over the business temporarily if you are unable to run it? What powers will they have while you’re still alive?
- If you intend the succession agreement to take effect while you’re still alive, what will your role in the business be after retirement?
- How will issues like estate taxes and other inheritance concerns be handled by your family in regards to the business?
Discussing these and other details with an experienced attorney can help you to cement a personalized plan that best suits the needs of your family and your business. A good attorney will consider your long-term goals, the specific needs of your family and any mitigating factors involved in your situation in order to draft up a legally airtight plan that fits your requirements.
Peace of Mind for an Uncertain Future
Whether you intend to pass the business on to your children when you retire or simply want rules established for selling the business and dividing its assets after your death, a business succession plan lays out your wishes in clear legal language. Planning for your future might not be fun, but knowing that your business will be tended to can give you vital peace of mind.
If you’re ready to take the next step with your business, contact McLane & Mclane today to learn about your options. We’ll be happy to discuss your needs and goals so that a plan for the future of your business can be established.