If you are a business owner, there is no doubt you have thought about what might happen to your business once you are gone. At McCulloch & Miller, we specialize in planning for the future, and business succession is no different.
Today’s blog covers some basics that could help you think through your business’s long-term ownership, but at the end of the day, the most important takeaway is to plan early and plan often. By ensuring you have put your company’s plan in writing, you can take care of the business that you have worked so hard to build. As always, we recommend contacting a Houston estate planning attorney to talk through the specifics of your plan and make sure it covers all of the necessary and relevant details.
Option One: Internal Sale
One popular option among those who own family business or have children and grandchildren is to hand over the business to a relative. This hand off could be in the form of a sale or a gift. In this scenario, it’s important to talk to an expert about how to minimize the possible tax consequences that you and your loved one could suffer. It’s also important to have open and frequent conversations with the family member you plan on naming as the recipient of the business. If that family member is not open to the transfer, the long-term success of your business will be threatened.
Option Two: External Sale
You can, of course, consider handing the business to someone outside of your family. In many external sales, the buyer chooses not to replace the business’s management, which tends to work favorably for business employees. On the other hand, an external sale requires careful research, as you don’t want your business to end up in the wrong hands. By thinking through the options early on, you can adequately prepare and do your due diligence to set up your business for success.
Either way, it is important to remember that life is full of unforeseen circumstances. While you might be in perfect health and of sound mind, there is always a chance that something could change tomorrow. While unexpected incapacity is never an enjoyable topic, it is an important one, and by speaking with a qualified Houston estate planning attorney, you can make sure your affairs are in order no matter what lies ahead.
Do You Need a Business Succession Planning Firm in Your Corner?
At McCulloch & Miller, our specialty is expecting the unexpected. We are there for our clients every step of the way, whether they are thinking through major business decisions, financial decisions, or relational decisions. Our team is experienced, thorough, and holistic, and you can trust that we have your best interests in mind. For a consultation with a Houston business succession planning attorney from our firm, give us a call today at 713-903-7879. You can also fill out our online form with your contact information to have an attorney get back in touch with you as soon as possible. We cover estate planning, trust planning, and elder law issues at our firm.