When Do You Need to Start Planning?
You need to start your business succession planning long before you consider selling or transferring your business or your portion of the business. In fact, if your ownership in a business consist of a partnership or LLC, your business succession plan should be built into the ownership structure you create when you form your business.
In part, the "succession plan" for a partnership or an LLC consists in part of a buy-sell agreement which is funded by insurance on the life of each partner or member of the LLC. If you don't have such a succession plan in place, you need to get one as soon as possible.
Who Should be Involved?
Everyone who has a stake in the issue needs to be involved in your Business Succession Plan.
If you intend to involve family members in your business, you need to be sure that they are involved in the Succession Plan. If you have critical employees, you need to get them involved in the plan, and perhaps provide them incentives, to advise you on tax issues involved, and to reduce any taxes you might owe.
You should also engage an attorney, business broker, business valuation expert, or other professionals to assist you in the process.
If you would like to schedule a free consultation to discuss creating business succession plan, please call or send us an email at firstname.lastname@example.org.
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