Congratulations on creating a business. This is an outstanding achievement.
As a business owner, you must understand that you won’t be around forever. Perhaps it feels strange to make plans for a business you just got off the ground, but it’s the responsible thing to do.
Business succession plans ensure that the dreams that you built from the ground up don’t disappear when you are no longer here. But what happens if you become incapacitated or worse? While you’re here and healthy, you can oversee business operations and make decisions on the fly. But who are the key players for the next generation?
Speak to a skilled business succession attorney at Johnson Legal about what a good business succession plan looks like for you.
Protecting What Matters to a Business Owner
Business succession involves the strategies employed for passing leadership or ownership interests once the current owners and managers have left and what leaving looks like so the company can continue without interruption.
From our experience of having formed hundreds of legal entities, including LLCs, corporations, partnerships, and non-profits, rarely do business owners address the issue of succession. Sometimes family members are interested, and sometimes not.
Often businesses are owned by unrelated partners, which can make the issue of succession even more critical. Some of the tools that assist in creating a business succession plan include specialized provisions in the Operating Agreement or Bylaws and a Buy-Sell Agreement.
Don’t just reach out to us when you want to explore the option of an entity purchase. Call us for a consultation today.
We Can Help You Create a Business Succession Plan
Whether you are a small business owner or the business in question has multiple owners, a good succession plan is needed. If there are many business owners, what happens after the death of one co-owner? Stipulations need to be in place pertaining to the surviving owners.
Who are your key employees? What are they empowered to do in your absence? Do you even have someone qualified or experienced enough to make significant financial decisions? Your key stakeholders will likely want to know what will happen to the business in the event of many contingencies. Clear instructions need to be in place, and our business planning lawyers can provide the legal expertise required.
Small Businesses Need Big Plans
A small business succession plan can save your family from squabbles you may not see coming. Multiple family members may have a stake in a family business. They may try to exercise power when you are not able to.
There may be an obvious successor to you, but not everyone else. Do you have a particular family member in mind as a key employee who will likely take over in the future? Small business owners often have very informal structures in place to run their businesses. This is simply not enough. If you pass away or become incapacitated, you should ensure that there is a successful transition to the new owner or person in charge.
Schedule a consultation with the experienced business lawyers at Johnson Legal to carve out an effective succession plan.
Retain A Reliable Business Succession Planning Attorney
We can discuss options like selling your business now or in the future, tax planning, and executing an exit strategy. If you are a surviving partner, and need information on the most attractive option, pay us a visit.