Ohio Revised Code Sections 1776.61 thru 67 dictate what happens with an LLC after an owner or partner in a business passes away.
However, depending solely on the Revised Code can mean a long legal process to get the business transferred, most likely the business functions will have to stop, and the business might end up being transferred to someone who does not want it and is not willing to keep it running.
Options for Business Owners
That is why it is important for business owners to understand their options and know what they can do to keep their business running smoothly and without any interruptions, even in case of the owner’s death. While a business may be disposed of in a will, similarly to other assets, it is not a preferred option. It means a lengthy probate process, during which the business might need to be shut down, losing its potential. There are other, more efficient ways to transfer interest in a business.
LLCs are run under an operating agreement which is created when the entity is created. It is important to seek legal help in getting the document drafted, to ensure that all essential aspects are covered in it. One of those is an option of designating a beneficiary who will keep the business after owner’s death.
With this type of planning, the owner not only has a say on who gets the business, but also can speak with the beneficiary ahead of time, making him or her aware that they are being named as such and ensuring that they are willing to take on the responsibility in case something happens.
We Can Help
At Sobon Law LLC we can work with you to ensure that your business is protected and can keep running after your death. Call today (216) 586-4246.