Planning for the Future of Your Business

Father children business

No one understands the work that it takes to build a business except someone who has done it. You may be just starting on this journey, or you may have already put in the years of hard work that it takes to build a successful business. As a business owner, you are rightfully proud of your hopes, dreams, and accomplishments. You have employees as well as family members who depend on the income generated from your business. But what happens if you are incapacitated or pass away? If your answer to this is “I don’t know” then it is past time to do some planning. If you are just starting your business, you can do some upfront planning that will make life much easier for yourself and everyone else later. The experienced attorneys at Stratton and Reynolds have worked with many business owners and helped them to plan for the future. As small business owners ourselves, we understand what it takes to launch and grow a business.

What do You Need to Know?

Here is our short list of what we think business owners should consider to keep their business safe in the event of the unexpected.

  1. Business Structure: Be sure you understand all the implications of how your business is structured. You have a number of choicesincluding sole proprietorship, LLC, or as a corporation, just to name a few. Each of these choices have pros and cons. We will get to know your situation and help you make the best decision for now and for future planning.
  2. Even if you have a will, without proper planning your business will have to go through probate. This process takes at least 8 months if everything goes smoothly to allow creditors to make claims. Your business may be exposed to immediate demands for payment from creditors or your business may even be sold at a lower than fair value. In the meantime, your family and employees may struggle to access accounts and keep the business going.
  3. Succession Planning: Many business owners assume their children will take over a family business in the event of the unexpected. We encourage business owners that we work with to have a clear structure in place as well as a plan to train their successor on all the aspects of the business that they will need to understand. Some clients find it is best to transfer the business during their lifetime while they are still there to help their family members learn the ropes.
  4. Communicate with business partners and family members. It is essential that everyone understands the plan for succession. These can be difficult conversations but having them can ease the transition if you are incapacitated or pass away.

We Can Help

Succession and estate planning for your business can seem like a huge burden when you are so busy building your business. We try to make it as painless as possible. And the simple truth is, the earlier you plan, the more options you have and the easier it is. Most importantly, the better it is for those you love.

This information hits just a few of the critical points in estate planning for your business. Come talk to our experienced attorneys about your unique concerns. We understand the hard work of building a business and we will take the time to listen to the details of your situation. Call us today at 803-358-7214 or complete the contact form on our website.

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