Business owners who raise a business from the ground up tend to think of it as one of their hardest won accomplishments. And well they should, since a successful business doesn’t happen by accident. Nonetheless, many business owners put off succession planning because retirement seems too far away, or they don’t want to think about death or disability. Don’t let your hard work and effective management fall apart because you didn’t prepare a succession plan.
First, you should know the options for your particular business entity. Ownership for professional corporations is restricted, but other types of business entities do not have such stringent ownership rules.
Second, you should consider who you would choose to run the business. You may have family members who want to carry on the business, or employees who might someday like to buy into the company.
Third, how will you transfer ownership? Central to this question is whether you have enough money for retirement without cashing out or selling the business altogether? Will you have to sell the business to get out of it, or can you afford a gradual transition, perhaps with residual income?
Finally, what are the tax implications of your various options for succession planning?
These are the questions that should be addressed when creating your comprehensive succession plan. Even if you are young and in great health, it is never too early to start planning. Unexpected events happen every day, and can cause havoc if you do not have a plan in place to allow your business to carry on. An experienced business law attorney can help you and your business be prepared for the future.
If you need guidance structuring your succession plan to meet your future business goals, or any other matter related to managing your business, the attorneys at the Scolieri Law Group, P.C. can help. Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can take care of the details for you. Contact us today at (412)765-0546 or firstname.lastname@example.org.