You have invested years of time and energy into building a successful business. What happens to all of that hard work in the event of your retirement, a disability, or death? Too often, business owners are so busy with day-to-day operations that they overlook the exit strategy.
There’s no doubt that your exit from the business will change many things: your tax obligations, assets, employees, and more. If you want to ensure the success of your business in the future, then you need to have a solid business succession plan in place. At Shoup Legal, we offer personalized business succession services, ensuring you are ready for any unexpected events down the road.
Transferring Ownership of Your Business
Business succession planning focuses on who will take over the company if something happens to you. It’s important that you engage in professional legal services for your succession plan to ensure that your wishes are met. Additionally, our team of experienced lawyers can offer advice about selling a business, legal requirements, and other details that will impact the success of your succession plan.
Here are five strategies you might consider when it’s time to transfer business ownership:
- Heir: The business interests are passed to one or more family members.
- Co-owner: Your ownership or shares are sold to a partner or co-owner.
- Employee: The company is passed to a key employee who will be taking over in your place.
- Third-Party: You have the option to sell the business to another person or company.
- Redistribution: If your business has multiple owners, then you can sell the ownership interests to the company, then these interests are distributed to the other owners.
What to Include in a Business Succession Plan?
A business succession plan is written documentation that guides the important details related to the change of ownership. A well-crafted business succession plan includes information such as:
- Succession timeline
- Standard Operating Procedures (SOPs)
- Business valuation
- Funding of the succession
Every business owner should create a succession plan without delay. Then, if anything unexpected happens, you can rest assured knowing that your business will continue thriving without your daily involvement.
At Shoup Legal, we offer ongoing support for many aspects of business planning, giving you the benefit of working with a team that helps to minimize potential legal issues in the future. Call us if you are interested in learning more about our business legal services: (951) 445-4114.
Protect your Business from Costly Lawsuits
A No-Nonsense, Practical Guide for Entrepreneurs!
Have you ever been concerned (or even even lost sleep) about these unfair California laws that seem to favor everyone other than the Small Business Owner? This guide reveals 5 foundational strategies that can protect your company from costly lawsuits!
You will learn critical information about:
- Adequately Insuring Your Business
- Compliance Requirements
- Proper Business Contracts
- How to Build the Right Team
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