Why You Need The Assistance Of An Estate Planning Attorney When Developing A Business Succession Plan
Most business owners know the essence of investing their time, money, and energy into growing their companies. However, creating a plan that will enable your business to continue even if you pass away or become incapacitated is vital. Succession plans are designed to ensure the seamless transfer of ownership and management of your company occurs with minimal disruption. With this document, you can determine who will take over your business, how they will gain control, and what will happen to the company if you die. It's vital to contact an estate planning attorney when crafting this plan because they understand succession laws and regulations. In this article, you'll learn why you need their help.
Analyzing Your Company's Corporate Structure
When starting your company, you likely hired a lawyer to set up your business's corporate structure. This structure greatly impacts the company's taxes, liability, and overall management of the business. However, as the company grows, it may cease to be ideal, especially if you're looking to sell the business or pass it on to someone else.
A lawyer can analyze your company's current structure and recommend changes. This will make it easier to sell or pass the business on, and protect your interests. They can also create for you a new structure if your current one doesn't fit your succession plan.
Avoiding Estate Taxes
If you're looking to pass your business on to your children, a plan can protect them from being forced to pay estate taxes on your company's value. It will also shield them from creditors and keep the business in the family. An experienced lawyer can structure your business and assets in a way that minimizes tax burdens and ensures your heirs inherit what you've worked so hard to build. They'll do this by establishing trusts, gifting programs, and other legal strategies.
Identifying Potential Liabilities
Your company's documents may have some vulnerabilities you're unaware of. If these aren't addressed, they could come back to bite you later on. An attorney can identify potential liabilities in your documents and take the necessary steps to fix them. Some things they'll be looking out for include guarantees made to third parties, cross-collateralization, and outdated provisions.
Developing a business succession plan is critical when you're still healthy and can make decisions about your business. An estate planning attorney can help you create a plan for your company's future. Contact these professionals today to get started on your planning.
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