Many Americans are able to realize the dream of becoming a business owner, bringing money and opportunity for their families. When your business is successful, it’s only natural to start thinking about what might happen when you wish to retire or you pass away. Who will run your business in your absence?
It’s not unusual for family businesses to employ immediate family members like a spouse and/or children, as well as parents and siblings of the owners, or even nieces, nephews, grandchildren, and other extended family. All have a vested interest in what will occur when the owner or owners of the business retire or pass away.
In order to prepare for one of these eventualities, you must consider succession, or how your business will be handed off to continue operating in your absence. This can be a complicated undertaking, especially if several familial employees are keen to take over. What you need is a helping hand from the legal experts at Curtis Law Firm.
Deciding Who Will Take Over
The first hurdle is deciding who will take over ownership and management of the business when you decide to retire or you die. If no family members work at the business or have an interest, you may decide to sell it to a third party at some point – perhaps a long-time employee or an outsider.
If you have several family members clamoring to take over, you may find yourself in a conundrum. How can you choose without upsetting your loved ones? The best approach is to consider the implications of your choice. Who is best equipped to take the business into the future? In some cases, more than one person may be needed to ensure success, which could mean transitioning ownership and management of the business to multiple parties.
Mixing business and pleasure, or professional and personal spheres, often creates complications. But with proper planning, a clear vision, and the assistance of seasoned legal experts, you can make the best possible succession plan for your business and everyone involved.
If you have no intention of retiring, or you’d like to retain full or partial ownership of your business even when you transfer management and operational responsibilities to others, you might want to consider transition of ownership in the business as part of the estate planning process. Here, too, a qualified attorney can advise you on the best course of action and help you to put a plan for seamless succession in place.
The plan you create will depend largely on your goals (both professional and personal), your financial needs, and whether or not intended successors like family members or business partners are willing to go along with your plans. Keep in mind, you’ll also want to consider the tax ramifications of any plan you make for business success, and this could play a major role in the succession planning process.
With help from the right legal partner, you can find the best ways to reach your goals and ensure your business lives on even after you retire or pass away. Contact the qualified professionals at Curtis Law Firm today at 720-408-7726 to learn more.
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