If you are a business owner in one of Michigan’s shoreline communities or in surrounding areas, it is important that you talk with a business lawyer about the issues that could affect the success of your company and that could impact ongoing operations. A business lawyer helps with many issues, ranging from understanding employment laws to negotiating and drafting contracts. An attorney can also help you with business succession issues, which could be some of the most important issues that your company faces because the strength of your business succession plan will determine if your company is able to survive even after you are gone.
The creation of a business succession plan is vital if you want to be able to hand your company down to your kids. You need to understand the different legal options available for the transfer of your company and you need to make sure you have taken steps in advance of the time when you get sick or pass away to facilitate the transfer of ownership.
Biddinger & Estelle has extensive experience with the creation of business succession plans and we can help you to make a plan that works for you, your company, and your family. Give us a call today to find out about the assistance that a business lawyer can provide in facilitating the transfer of a company down to the next generation.
How Can You Pass Your Business Onto Your Children?
The process of passing your business down to your children will vary dramatically depending upon many factors including the size of your business, the type of business entity that you own, whether the value of your business and assets are large enough to trigger estate tax, and a wide variety of other key issues.
One of the biggest mistakes that people make is to simply leave their business to their children in their will. This is a problem for a number of reasons, not the least of which is that assets that you transfer in accordance with your wishes in a last will and testament will typically have to transfer through the probate process. The probate process can take a very long time, and new owners will need to wait months or even years to inherit the assets left to them in a will. The executor of an estate will be in charge of managing estate assets during the probate process, but the lengthy delay in the transfer of your business, the period of uncertainty and the fact the new owners won’t immediately get to take charge can all undermine the value of your company and make continued operations difficult.
The risk of losing business assets because of estate tax can also be a big problem, especially if you just transfer your company in your will. If you have a valuable business but few liquid assets, the company and its assets could cause estate tax to be triggered. If there’s no cash or other liquid assets to pay the estate tax, then your heirs or beneficiaries could end up being forced to sell the business just to generate enough money to pay the tax bill that is due to the government. Your heirs or beneficiaries could also perhaps be forced to take a loan to pay taxes, which would make it harder for your company to be profitable.
All of this can be avoided by making a smart business succession plan. Working with an experienced attorney to make a business succession plan is the single smartest thing that you can do to make sure you can pass your company down. Biddinger & Estelle can discuss with you options like creating a family limited partnership or incorporating your business and transferring shares of ownership over time so you can protect your company from all different kinds of potential loss. Your plans should be personalized to you, but every business owner should work with a business lawyer to make a business succession plan.
Getting Help from A Business Lawyer
A business lawyer at Biddinger & Estelle can provide help with your company if you live in any of Michigan’s Lake Huron shoreline communities. We have the knowledge and experience you need to help you to make a business succession plan that works for you and your company. We can explain your different options, discuss your goals and help you to create and implement the perfect plan for you. To find out more about the help that we can offer with your planning process, give us a call at (989) 872-5601 or contact us online today.
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