St. Petersburg Business Succession Planning Attorney
You have worked very hard to build a successful business. You may worry about what will happen to it after you pass away. The retirement or death of an owner or founding partner is one of the most damaging things that can happen to a business. Power struggles, tax issues, and a future generation who is poorly prepared are just a few reasons businesses often collapse within a year of a death or retirement. Below, our St. Petersburg business succession planning attorney outlines the most important factors to consider, and how to ensure your business is in good hands.
What is Business Succession Planning?
With a solid business succession plan, owners of small and medium-sized businesses can prepare for the time when the owner or founder is no longer running the company. A properly structured business succession plan will provide contingencies for both the retirement and death of the owner or key partners. Business succession planning entails:
- Ensuring there are financial measures in place to make sure any transition proceeds smoothly,
- Ensuring legal documents are prepared to make sure the transition is easier, and
- Ensuring the future generations of leaders are prepared to run the business successfully.
A business is often the biggest asset a person owns. For this reason, it is also critical to consider estate and tax planning issues, as well. A proper business succession plan provides a way for the business to continue operating after the owner or founder retires or passes away, while also providing financially for a death or outlining a clear path for retirement.
Estate Planning for Business Owners
It can be uncomfortable to think about what will happen if you pass away, but it is particularly important for business owners to have a comprehensive estate plan. Estate planning for business owners vastly differs from other types of estate planning. Simply creating a will or a trust is not enough.
It is important to consider how the assets of your business will be dealt with if you pass away. Your estate plan should also detail how ownership of the business should be transferred after your death or retirement. There may also be issues regarding stock transfers, insurance policies, estate taxes, and buy-sell agreements that may arise so your succession plan can include ways to resolve or avoid them. When creating an estate plan as a business owner, you should work with a lawyer who has the knowledge and expertise pertaining to corporate and personal tax law, securities law, and business organization law.
Our Business Succession Planning Attorney in St. Petersburg Can Help with Your Plan
There is a lot to consider when you think about the future of your company, and how to protect it. David Toback is a St. Petersburg business succession planning attorney who can advise you of the many factors to consider and help you create a comprehensive plan so your company does not suffer. Call us now at 813-252-7529 or chat with us online to book a consultation and to learn more.
