For many business owners, the future of your business and life’s work is at the forefront of your mind. Business succession planning should also be at the forefront of your estate planning. Beyond the complexities of regular estate planning, business succession planning must carefully consider unique tax implications and asset protection strategies. In addition, choosing the right person to control your business—or the right plan for sale or closure—is imperative in ensuring your preferences and wishes are carried out.
Who Will Control Your Business?
When it comes to who will control your business, any business owner knows the right leader is crucial to the success of the company. If you can no longer run your business, you have several options.
First, you could transfer ownership to someone you’ve selected yourself. While many owners believe this will ensure their life’s work is carried out with their preferences in mind, owners should carefully consider who they should pass the business to and what training will need to be done. In addition, there are tax liability issues at play in the transfer of a business.
If you would rather sell your business if you no longer can operate it, this may be a choice that provides your family and beneficiaries with financial security. An estate planning attorney can help execute a buy-sell agreement, which will come into play when a condition, such as death of the owner, is met. A clear and thorough arrangement can ensure the business continues to operate smoothly in the event of disruption. A fixed and predetermined purchase price can also ensure your family is not taken advantage of in the sale process, and an attorney can help you determine a fair market value that is above board for tax purposes.
Another option is closure of the business altogether. Thorough planning will need to be done to ensure the tax implications on the owner’s estate are planned for if significant asset sales occur. Dissolution documents will also need to be filed with the state. An estate planning attorney can make sure all of these key steps occur in accordance with your wishes.
Protecting Your Business
There are also multiple ways an estate planning attorney can help you protect your business from creditors. Some of these methods can be done years before a claim is even made, such as classifying your business as a limited liability corporation, limited liability partnership, or corporation, rather than a sole proprietorship, or ensuring careful consideration of your insurance policies and updating your coverage if needed. An experienced business succession planning attorney can walk you through every option and come up with the best plan for your unique business.
Texas Business Succession Planning Attorney
Business owners must make difficult decisions when estate planning. Your estate planning attorney needs experience in anticipating the needs of business owners. The lawyers at McCulloch Miller, PLLC have extensive experience in asset protection and succession planning and can protect your hard work. Contact our office at 713-936-9073 to schedule a free initial consultation with an attorney on our team.