Business Succession Plan
You need a business success plan now. You create a successful business. But who is going to take over your business? Many owners assume a family member. But what if no one in the family is interested in the family business? What then? Do you sell to a new owner? Do you dissolve the business?
How are you going to turn over the control of your company? How will you train your successor? How will you retain your employees?
Enter business succession planning. Business succession planning consists of a wide array of options. A successful plan covers events during your lifetime and when you die.
What is Business Succession Planning?
What is business succession planning? It is an important part of estate planning. Business succession planning determines who will take over your business when you retire, die or become disabled. You identify who will take over the business. You plan a timetable for transferring management of your company. You set up a training plan.
As a business owner, you need a plan for your business. You will not always be around to run your business. You need to plan an exit strategy for yourself.
Buy-Sell Agreements
Or, maybe you want your interest sold at your death. So, you set up a buy-sell agreement.
You can sell your shares or ownership interest to a co-owner. Or, you can sell to a key employee. Maybe you want to sell to someone outside your organization. Or, if there are multiple owners, you can sell your membership interests back to the company.
Life Insurance on Owners
You may need life insurance on the owners. This is where business succession planning connects with your estate planning. Business succession planning is must for a business owner.
Gifting
Maybe you need to reduce your taxable estate. You can gift business assets to your family members during your lifetime.
Passing Business to an Heir
You decide you want to give the business to a family member.