If You Have a Family-Owned Business or Farm

chances are it represents your most valuable asset. Protecting it is paramount—for today and the legacy of future generations. Yet, with its significant value, it faces a number of threats: lawsuits, creditors, accidents, economic downturns, taxes, and more.

At Biddinger, Schrot & Rolando, PC, we  understand no two businesses are alike, and neither should their protection plans be. We believe in crafting tailored strategies that address your specific needs and concerns. Our team takes the time to understand your business or farm, its unique challenges, and your long-term goals. By customizing our approach, we ensure that your assets are safeguarded effectively, allowing you to focus on what matters most—running your business and nurturing your land. We can create a customized plan to protect your family-owned business or farm from threats and help ensure that you can transition out of your operation on your own terms when you are ready to do so.

Laying a Solid Foundation:

Choosing the right entity for your business or farm is extremely important. We have extensive experience in helping our clients select and create the entity that best fits their immediate needs and long-term goals. Here are some of the most common approaches:

Sole Proprietorship:

This is generally used by self-employed people who are not interested in formally organizing their business or farming operation. Sole proprietorships do not offer liability protection for businesses and farms.

Partnership:

Partnerships can be formal or informal agreements between individuals who want to work together and share both profits and losses. In a general partnership, all parties share profits, losses and liability. In a limited partnership, the partners contribute capital and share in profit or loss. However, the limited partner is not actively involved in business operations and has limited liability. Limited liability partnerships take it one step further to offer liability protection for all partners.

Corporation:

Corporations provide owners with many important benefits, including limited liability, the ability to issue shares of stock, and greater flexibility in ownership structure.

Limited Liability Company:

LLCs combine the flexibility of a partnership with the protection of limited liability provided by a Corporation. An LLC can also be easier to maintain than a corporation and provides exceptional liability protection if structured properly.

The Importance of Business Succession Planning:

The timing and manner of your exit is every bit as important as your formation plan in terms of how much you ultimately earn from your business or farm. Planning for the future is essential, especially when it comes to passing on your business or farm to the next generation. Succession planning involves more than just transferring ownership—it's about ensuring the continuity and prosperity of your legacy. If you want to pass your business or farm on to members of your family, you have to be sure that they are capable of running it and genuinely want to do so. 

Our experienced team works closely with you to develop comprehensive succession plans that address key considerations such as timing, leadership transition, estate taxes, and family dynamics. Whether you envision keeping the business in the family, selling it to employees, or exploring other options, we provide guidance and support every step of the way.

If you have a family-owned business or farm, we can design a comprehensive plan to protect it and, when you are ready to retire, transition out of it on your terms. When you are ready to take the next step in safeguarding your family business or farm - schedule a personalized consultation with our team of business planning attorneys. During this meeting, we'll discuss your unique needs, explore potential strategies, and answer any questions you may have. Let us be your trusted advisors as you navigate the complexities of business ownership and succession planning.