In the U.S., a majority of businesses are family owned. These range from large enterprises to small single-shop operations.  Regardless of how big or small a business is, tax implications and other consequences could occur during a succession transfer. You may avoid these hurdles by having an individually crafted plan for the easy transfer of your business to a partner, family member, third party, or other business entity.

Although you can create this plan on your own, a lawyer may consider the current structure such as LLC, corporation, sole proprietorship, or limited partnership. He or she may also discuss any specific objectives and review documentation to ensure everything is in the right place. A business succession lawyer such as The Atlanta Probate Team might help you to:

• Significantly reduce or eliminate estate taxes
• Avoid probate or lengthy disputes
• Establish a monetary value for the business
• Determine who will operate the business
• Structure the business to be an entity that suits your needs and protects your wealth
• Consider financial interests of heirs not involved in the business
• Provide for the transfer of your interests to those involved in the business
• Prevent the sale of a family member’s interest to a person not related to the family
• Develop further planning to resolve disputes
• Provide for transfer costs, taxes, and other expenditures
• Restructure responsibilities and positions

If you think your business requires any of the aforementioned, please contact The Atlanta Probate Team today to discuss your succession concerns.

There are a number of reasons to consider the future of your family business. However, planning should be done early on rather than waiting until retirement or after becoming diagnosed with an illness. This is because even young business owners are susceptible to unforeseeable circumstances, include disability, incapacitation, or death. When you engage in business succession planning, you can feel confident in knowing the business will be taken care of.

The Atlanta Probate Team provides flexible and practical business succession advice based upon the characteristics of the operation, goals, and any special personal circumstances. We work closely with each client and any third party financial professionals to develop a seamless, integrated business succession plan. We identify and consider important business factors, such as buy-sell agreements, voting trusts, and future changes in ownership. Our lawyers may also ensure any current trust or testamentary instruments support the plan for a smooth transfer of assets and control.

Yes.  If your business gets to a point where you and the other partners fail to get along, the dissolution of your business can be as emotional as a divorce in family court. When you first enter into a business, you form an entity to limit your liability and save money on taxes. These advantageous benefits disappear when you decide to dissolve the business, but your liabilities will not.

Under the law, when you no longer do business or decide to terminate the business entity, you need to go through the process of dissolution that will be the formal end of the business entity. This process can be voluntary or involuntary, contested or agreed. Because the law mandates the dissolution of your business, and liability may be present after dissolution, it is very important to develop a comprehensive exit strategy, especially if one or more partners contest the dissolution.

There are so many benefits to planning out the succession of your business. Besides the certainty and security of knowing what will happen with your company, there are several more advantage to business succession planning. Some include:

You Can Maintain Control – A business succession plan will give you, the owner, a certain level of control of the company until you are comfortable with the current management and ready to turn it over to your named heir.

You Can Receive Income – If you get started early on, your planning can help you to secure income for your retirement.

Reduce Your Taxes – With the right business succession plan, your estate taxes could be reduced. Furthermore, it is possible to give your business as a gift which would remove all or some of the value of the business from your estate.

Business Succession Plans Are Flexible – These plans give you the ability to consider different options about your business and find one that may be best for its growth and sustainability. A business succession plan also allows changes, or alterations, to be made if any circumstances change.

Family Drama May Be Reduced – When there is no business succession plan in place, or solid estate plan, it is possible for family conflict to occur. This is likely the last thing that you want. By creating a business succession plan, the role of every heir can be explicitly stated; thereby, potentially saving you and all those involved from a dispute.

If you would like to get started on business succession planning, please call the Atlanta Probate Team for a complimentary consultation with a business succession lawyer.