Do you own a business in Nebraska? If so, your business is likely one of your most valuable assets, which certainly warrants some planning to help ensure that your business assets are afforded as much protection as possible, that your business will be able to continue to operate, uninterrupted, in the event that you become incapacitated and/or disabled during life, and to decide what will happen to your business once you pass away. Unfortunately, a substantial percentage of small businesses in the United States have no planning in place to guide them to a successful exit and/or transition of the business. Without a plan in place, your business's fate may ultimately be decided by a Court, instead of according to your wishes. Additionally, if your estate can avoid conflict between the future business owners, especially if the intended owners will be family members, that should be reason enough to plan for you business's succession.
Important questions to consider:
- When do you want to exit your business?
- Who do you want to take over your business when you leave?
- If your business is going to be passed on to family, what are the family dynamics? Do your children get along? Are there any troubling marriages that may cause problems? Are there creditor issues with a family member that you intend to take over the business?
With these questions answered, a plan can be crafted to provide guidance and direction to allow for a successful exit from your business. Such planning will likely include many of the following:
- Business valuation;
- Personal, financial, and retirement planning;
- Federal Estate tax minimization planning;
- Buy-sell agreements;
- Estate Planning; e.g., Last Will & Testament, Living Trust, Power of Attorney; and/or
- Stock transfers.
Another important of business succession planning concerns the tax issues that will arise based on the succession plan and the type of business entity involved. For this reason, it is important to engage with an experienced CPA at an early stage in the process.
Understanding business succession and creating a comprehensive plan can allow your company to thrive in your absence, whether that is via incapacity/disability or death. Don't leave everything that you have worked for up to chance! Give yourself and your loved ones Peace of Mind by ensuring that your business's legacy is protected. Contact Clinch Law Firm, LLC to schedule a free consultation at our York, Nebraska office, or feel free to schedule a complimentary 30-minute telephone consultation or a 60-minute in-person consultation for a time that works for you here: Appointment Scheduler. Virtual appointments are also available, upon request.