Do You Need a Business Succession Plan?
Many people own family businesses. While you might have an idea of what you want to happen to the business after you retire, do you have a succession plan in place? Many business owners do not consider the importance of estate planning when it comes to their company, and it can cause complications, disputes, or disruptions of operations and loss of profits. It is important to discuss a succession plan with an experienced business lawyer in Houston as soon as possible.
The Benefits of a Succession Plan
A business succession plan establishes an orderly transfer of ownership and/or management of the company should something happen to you as the owner. If you retire, you have the chance to organize this transfer ahead of time. However, what happens if you suddenly become incapacitated or pass away? Without a plan, the sudden loss of a business owner can cause chaos and may even lead to the liquidation of the company.
If you have a family business, disputes could arise regarding who should take over if something happens to you. In some situations, your spouse or your oldest adult child might not be the right fit for the position. Some people do not have the management skills or willingness to run a business, and the company can fail quickly if it falls into the wrong hands.
Transferring a business can also have many tax implications, which can be addressed in a succession plan. Planning ahead for the financial issues that might arise can make the transition from your ownership much easier for everyone, as well as preserve the business.
Discuss Your Options with a Business Lawyer in Houston
Houston business attorney Tim Sutherland helps hard-working family businesses plan ahead to ensure ongoing success whenever possible. Call 713.300.1946 or contact us online for a discussion about your succession plan today.