Business Succession Plans To Protect Your Future

As a business owner, you have invested countless hours, money and focus into building and maintaining your business. However, many business owners do not consider the future of their company if they pass away or become incapacitated. A business succession plan is critical for your company’s future. A sound plan eliminates uncertainty and minimizes serious consequences should the worst happen.

At MDSLaw Ohio in Marietta, we assist business owners throughout the Mid-Ohio Valley in developing succession plans that aid in the smooth transition of their business. Our experience with estate planning and business law allows us to provide valuable legal guidance and create a succession plan to protect your business, family and employees.

What Can I Do Now To Prepare My Business For Retirement In The Future – 10 Key Legal Steps

Preparing your business for your retirement requires strategic planning and foresight. Here are 10 critical legal steps that prepare your business for a seamless transition.:

1. Create a general timeline: Establish a realistic timeline for your retirement to guide your planning process and ensure all necessary steps are taken ahead of time.
2. Business structure review: Assess your current business structure to ensure it aligns with your retirement goals and provides the most beneficial legal and tax advantages.
3. Evaluating successors and developing and training personnel: Identify potential successors and invest in their development to ensure a smooth transition and continued success for your business.
4. Understand valuation: Get a professional valuation of your business to understand its worth, which is crucial for any sale, buyout or transfer to heirs.
5. Formalize operating procedures and legal compliance: To facilitate an easy transition, ensure all business operations are documented and comply with legal standards.
6. Strategy to fund changes: Develop a financial plan to fund any necessary adjustments during the transition, such as training new management or updating infrastructure.
7. Considerations for selling, buying out or leaving to an heir: Decide whether to sell your business, arrange a buyout, or pass it on to an heir and prepare accordingly.
8. Tax and estate planning integration: Integrate your business plans with personal tax and estate planning to minimize liabilities and protect your assets.
9. Power of attorney and health directives in the case of unexpected incapacity: Establish legal documents like a power of attorney and health directives to ensure your business is managed according to your wishes (or promises) if you become incapacitated.
10. Clear communication and written plans with family and stakeholders: Maintain open communication with them and document plans to prevent misunderstandings and ensure everyone is on the same page.

Can I Leave My Business In My Will?

Yes, you can leave your business in your will in Ohio. This process involves designating your business as an asset to be transferred to a beneficiary. However, it’s essential to consider other options that might better suit your situation and goals. For instance, establishing a trust can provide more control over how and when the business is transferred, potentially offering tax advantages and avoiding probate. Additionally, you might explore setting up a buy-sell agreement, which allows co-owners or a chosen successor to purchase your share of the business under predetermined terms. It’s crucial to evaluate the implications of each option with legal and financial advisers to ensure a seamless transition.

Personalized Succession Plans That Make A Difference

Business succession planning involves creating a detailed plan outlining what will happen to your business after you pass away, retire or become incapacitated. Like an estate plan, it can be customized and frequently updated to align with your wishes and any changes in your life or business.

Whether you wish to keep your business in the family or liquidate it, we can help create a plan that ensures your wishes are followed. We take the time to get to know you, your business and your goals to help design a succession plan that is right for you. We will help you consider naming your successor, determining a financial power of attorney and picking the proper business structure. We can also discuss placing your business assets in a living trust that will allow you to reduce estate taxes upon death and pass on ownership during your lifetime.

Matthew D. Scott, our founding attorney, was a licensed insurance and finance professional before founding his practice. This experience and his vast legal knowledge give our clients valuable insight into long-term financial planning for business owners.

Let’s Work Together To Plan For The Future

It’s never too early or too late to plan for what comes next. We understand how important your business is to you and strive to provide practical legal guidance that considers your goals and concerns. Contact MDSLaw Ohio today to schedule a free consultation at 740-923-4235 or by completing our online contact form.