Forming a family business requires a lot of work and exhaustive planning from the start. Most business owners dread the idea of having to plan for what happens when they are no longer here or when they decide to retire. Which child will run the business? What should I do if the members of my family are reluctant to take over the business? It is not uncommon for business owners to have such struggles, especially when it comes to establishing solid succession plans.
Do You Have All the Information You Need?
The truth is, a skilled business attorney can help you understand the succession laws for your state and navigate the rules that may influence how your plan is laid out. In order to write a solid business succession plan, you should also take into consideration any tax rules and operating expenses that may apply to your business, depending on the state where it is located. A business planning attorney can take out the complexities and reduce the sense of overwhelming that often comes when planning for the future of your business as it is handed over to the next generation.
While you are not required by law to hire a attorney for business planning in order to craft your business succession plan, you might find it beneficial to do so. For example, your attorney may provide assistance in gathering as much data as possible about your business. This data will be fundamental for crafting a reliable business succession plan. Your business attorney may also be instrumental in helping you conduct a precise valuation of your business and assessing any and all outstanding assets and debts.
How Will Your Family Be Affected?
Once you have decided which family members will have participation in the future of the business, your attorney can help you run through a variety of what-if scenarios that include developing a contingency plan for each member’s potential role in the organization. With all this information in hand, in some cases, your attorney may recommend a restructuring or reorganization of your business in order to help make the transition easier for everyone involved. In ideal situations where the business is transferred to the next generation while the senior generation is still living, your business attorney can make recommendations on how to best pass on the business while minimizing taxes.
Business succession planning is an uncomfortable topic for many business owners who simply don’t take the time to think about the future of their own operation or who simply get involved in day-to-day activities and would rather not think about giving up control of the business they worked so hard to build. However, implementing a business succession plan can minimize chances of heated disputes between family members over their roles in the business by covering as many hypothetical scenarios as possible and laying down clear expectations. At Crow Estate Planning and Probate, PLC, our attorneys take time to understand your business and learn all the details that are important for writing a reliable business succession plan. With our knowledge of estate planning laws coupled with our skills and know-how in business law, we are able to take a holistic approach to help you secure the future success of your business and to preserve your legacy. If you are considering crafting a business succession plan for your family, don’t hesitate to contact our legal team for a consultation. We are here to help.