Business Succession Planning
When a business owner retires or becomes unable to work, the future of a business and its employees can come into question. Business succession planning arrangements help ensure a smooth transition between current and new business ownership.
A pre-determined plan to sell a business in the event that the owner retires, becomes disabled, or passes away is needed. These plans provide the company with financial protection and ensure the continuation of the business, despite the absence of the owner.
A Family Business comes with more intricacies when dealing with family dynamics:
- How do we treat children that are active in the business vs non-active when it comes to our estate?
- How do we minimized taxes?
- How do we make sure that we are retirement income is enough without encumbering the business?
- Should we gift ownership, have them buy in, leave after death, or a combination?
- How do we keep harmony in the family?
Buy/sell agreements, entity structure, successor entry requirements, and other pertinent documents need to be created.