What will happen to your business if you aren’t there to run it? What happens if you are seriously injured in an accident, incapacitated, suffer a serious illness or lose your life?
It is so much more exciting to think about new growth opportunities for your business, or ways you can reduce costs and increase profitability. However, there is an important part to business strategic planning that many entrepreneurs and business owners overlook: What will happen to your business if you aren’t there to run it?
In legal terms, this is known as “business succession planning.” What is business succession, and why is it important to develop this plan if you own a business? Business succession planning usually involves inter-generational planning, tax implications and a bit of emotion. These decisions are much easier and clearer when things are going well.
How Do I Protect My Family and the Good People Who Work For Me?
A business succession plan begins with what will happen if you become incapacitated for some reason. You may have a health issue or become involved in an accident. Who will be responsible for critical business decisions and keep your company moving and growing in your absence? How will control and authority to make decisions pass and to whom? When can that authority be reclaimed?
What will happen to your business in when you pass away or lose your life in an accident? What is the legacy you wish to leave to your children, family and loved ones? How will your business continue, and provide for the needs of those you care for? How do you plan for finding someone to manage your company on an interim basis, and when it is time to pass it on to an heir or to sell it outright? When your business is sold, how can the proceeds be structured to ensure maximum benefit for your loved ones, heirs and beneficiaries?
It is important to have a plan for what will happen to your business if you aren’t there to run it and a strong business succession plan provides a roadmap to protect your company as well as those you love.
The experienced business, estate planning, tax and trust attorneys at Allen Barron provide a single-source perspective on these complex business questions. We will provide informed insight into all of these issues, as well as assist with ongoing accounting, information systems and operational issues. If you are a business owner and have questions about business succession planning we invite you to learn more about the integrated tax, legal, accounting and business consulting services of Allen Barron and contact us or call today to schedule a free consultation at 866-631-3470.