Nearly 90 percent of all businesses in America are either family-owned or family-controlled. If you are a business owner supported by your family, you might think the transfer process sounds simple enough. But if you become disabled or pass away, your business succession requires planning in order to avoid conflict.
In fact, there are a number of questions business owners must ask themselves when considering business succession, including:
- Who will run the business after you? Will it be your spouse, one of your children, or a non-family key employee?
- Will your spouse still be financially dependent on your business, even if they aren’t managing it? Or, can you make arrangements to ensure they are financially independent of it?
- What arrangements have you made for your children’s inheritance, especially if they are not active in the business?
- Have you in-law proofed your estate?
- What provisions have you made to encourage thrift and industry among your grandchildren? Have you thought about second-generation transfer of your business?
If you’ve never thought about those business succession questions, you are not alone. However, it’s important to start planning your business succession now to keep your family, assets, and company protected in the future. By working with a qualified business succession lawyer, you can avoid any potential risks or future threats to your company and successors.
A business succession attorney can help you…
- Plan for estate tax uncertainty by arming you for estate liquidity and ensuring your family has enough money to meet estate tax cash call.
- Coordinate financial and estate plans to meet all your planning objectives, provide liquidity for estate taxes and business debts, and ensure you have enough cash to fund your objectives.
- Draft a business buy-sell agreement (BSA) to plan ahead for any incapacitation of the business owner and establish a value for the business that is binding on the IRS for federal estate tax purposes.
- Create a fund to finance your buy-sell agreement by aiding you to save up funds and implement disability buy-out insurance and life insurance.
There are many considerations that must be examined when planning for your business succession, and there is no better way to protect your company’s future than by working with a qualified attorney. The attorneys at Salines-Mondello Law Firm, PC are experts in covering all your bases in business succession and can help you safeguard your future, finances, and family. We’ll help you consider all the implications of your business succession or transfer and work closely with you and your successors to provide an effective plan for your needs.
To get started working with a business succession attorney in North Carolina today, give Salines-Mondello Law Firm, PC a call at (910) 777-5734 and schedule your first, fully confidential consultation.