If you’ve spent the work of your life building up a company, it can be difficult to think about how without you the business will ever survive. But the truth is that even after you’re gone, if you want the company to succeed in the way you think it should, you still need to take some time to prepare for business succession.Check out Business Successions Planning Attorney near me for more info.
Since business succession planning can include both legal and emotional problems, an attorney who specialises in business succession planning can really help you ensure that your company is legally sound for the future and can offer guidance to third parties on emotionally exhausting decisions.
A company attorney may assist you with two crucial issues: setting up ownership and handling the effects of estate taxes.
1. Ownership: You need to first decide who will run the business in order to determine how the company will be owned. You may consider changing management and selling the business to an outside source if you are unattached to the company or want a clean split. Or, you may want to look for an outside person who seems to have good management and business abilities. You may want to leave leadership and ownership to them if you have kids who work with you or long-term employees. You may want to consider splitting your business into voting and non-voting stocks if you have several children, some of whom work in your company and some who do not.
Stock options are also a safe way to invest in and attract long-term workers who, when the organisation faces a change of leadership, will help the transition. It can feel difficult to pick a potential management team for your company and try to break the value of your company. An attorney will assist you in weighing your options and creating a transfer of ownership to satisfy your needs and desires.
2. Taxes: Taxes that can occur when a company changes hands can serve a harsh and often fatal blow to the finances of a business if not properly prepared for. Even if you intend to leave your company directly to your spouse, you will need to negotiate business succession planning with an attorney. If your company is worth more than a certain amount and you don’t take extra steps to minimise your tax burden, estate taxes will still affect you.
You can eventually move your assets to them to escape any of the tax burden if you leave your company to a child or long-term employee and you start early enough. The partners may want to consider taking out life insurance policies on one another if you are a partner in a business. That way, upon your death, the partners will be able to purchase your investment in the business and compensate your relatives. There are so many different taxes that can impact a business transition and so many different succession situations that for sound advice for your business, you really need to seek the advice of a business succession planning attorney.