Do You Have A Succession Plan?
Many small-business people in the greater Highland Village and Flower Mound area, and all over Texas, haven’t planned to make sure their companies stay in the family after they’re gone. Estate planning with an emphasis on succession can help prevent unwanted consequences upon the business owner’s passing. Not only does small-business succession planning make sure that the right people inherit and manage your company, but it also helps minimize taxes.
At Ken Wigginton, PLLC, we will help you assemble a succession plan for your small business. That way, you, your family and your partners can rest assured that your company will transition smoothly. Looking at your small business’ organization and wishes for succession, we’ll address these key topics:
After a small-business owner passes, his family, partners, employees, customers and vendors are often left insecure and unsure with regard to decisions about daily operations and relationships with the company. A “smart” business succession plan doesn’t just address ownership transfer, but can also help transition daily management and operations.
With most small-business owners, a majority of personal wealth is tied up in the company. In this situation, it’s necessary to protect both the company and the small-business person’s heirs from unnecessary tax payments. Without a “smart business” succession plan, family and partners who may be taking over the company could become liable for an estate tax that eats into the company’s value. Because few small businesses possess sufficient liquid assets, the new owners may be forced to sell the company.
Properly drafted legal documents customized to the small-business person’s unique situation are crucial to successful succession planning.
Current Risk Management
Steps must be taken during your lifetime to minimize the risk of liability arising from business activity. Unresolved, accruing, risk complicates your company’s valuation and restrains your succession planning capabilities. We’ll help you develop and maintain a solid risk management plan by carefully examining the quality and adequacy of liability insurance; making sure your small business’ operations are founded upon well-drafted contracts dealing with issues of liability and indemnification; reviewing your employee relationships (human resources) program for compliance; and possibly, forming a corporate or limited liability entity to shield you from personal liability.
Key Persons’ Retention
We’ll consider options for maximizing the retention of personnel essential to your business’ continued operations through equitable compensation planning.
Lifetime Transfer Option
The timing of a transfer of your small business during your lifetime, but optionally retaining operational control, may be advantageous. Advantages include the opportunity to mentor successors, minimizing the risk for discounted sale and tax planning.
Protect Your Business For The Future
Your business deserves to have a secured future. You put a lot of hard work into building it, and we will help you make sure it lasts for the next generation. To find out more about our services, call us at 940-308-8416 or send us an email.