Are you a business owner? Do you have a plan in place as to what will happen to your business when you retire or pass away?
About 90% of businesses in U.S. are either family-owned or family-controlled. Because many of them required many years of hard work and dedication, you should ensure that all of that is not lost when you want to retire or after you pass away. In order to ensure a smooth transition to a new owner, which will prevent interruptions in running a business, a comprehensive succession plan is required.
Below are just some of the things business owners should keep in mind, which will help them plan ahead and allow their business to run, even when they decide they do not want to be the owners anymore.
Because tax laws and regulations change frequently it is important to stay up to date on all federal and state laws. Knowing exactly what to expect is essential in order to ensure that enough money is saved to cover all necessary taxes related to the business.
Coordinating Financial and Estate Plans
When creating a personal estate plan, it is important to look at the financial aspect as well. Analyzing your personal assets as well as business assets will allow for an appropriately funded plan, which will help you meet all your goals you may have for your estate plan, as well as provide the necessary financial foundation for your business to handle all possible debts and liabilities.
Business Buy-Sell Agreement (BSA)
This type of contract allows for a smooth transition of a business to a new owner upon a triggering event, such as retirement, disability or death of the business owner. Any type of business, whether a corporation, LLC or a partnership, can be transferred with a BSA. Because there are different types of BSA and the type that best fit your needs may depend on the type of business and the ultimate goals you have, it is important to speak with an experienced attorney who can help you choose the right agreement for you.
At Sobon Law LLC we work with families everyday to ensure that their assets and businesses are protected. Call today at 216-586-4246 to schedule your consultation.