Business Lawyers Rockville, MD
What do you do with your business when it’s time to retire? Do you have a written succession plan for your business? This is especially important if you run a family business and the plan is to give over the reigns of running the business to a family member. What happens to the business if you die unexpectedly? Do you have provisions in your will or estate for how the business is to be handled? All of these questions are important to address. To help you find the right answers, you should talk with leading business lawyers in Rockville, MD.
Business Succession Planning
Developing a business succession plan is necessary to avoid any confusion or disputes once the time comes to personally step down from leading the company.
Here’s a checklist to use when putting together a business succession. The right business lawyers in Rockville, MD can assist you in developing this document and also help resolve conflicts that may arise because of the information in the business succession plan.
- Establish the objectives and goals of developing a business succession plan
- Is there a need for the plan?
- List the goals, objectives, and visions of the business
- How important is the involvement of family members in the ownership and leadership of the company?
- What are your personal financial needs and retirement goals?
- What are the goals of your family members?
- Would the use of an outside facilitator be necessary?
- Put together a professional group to work for you and your company, including a lawyer, CPA, financial advisor, banker, and insurance provider
- Who is authorized to make business decisions?
- Allow family members to have a voice in making decisions
- Develop a means for resolving disputes
- The succession plan needs to be in writing
- Inform family members of the contents of the succession plan
- Who are your successors?
- Identify all your successors, including business owners and company managers
- List roles for all family members, including active and non-active positions
- Detail all training that is required for the successor(s)
- Offer to provide all the training necessary to the successor to make sure the business continues to succeed
- Is there a role for the owner that is retiring? If so, detail the duties of that role
- Offer to support and counsel the successors
- Planning your estate
- Discuss tax implications to the business/owner after the transfer or sale of ownership
- Are there enough funds in your estate to pay the estate taxes?
- Will family members not active in the business receive any equitable share of assets?
- How will you transfer the business?
- Will the business be purchased or gifted/bequest, or both
- Understand and discuss the tax implications and strategies
- Understand any legal implications
- Update any business agreements and business structure
- Plan for contingencies
- Identify areas that could be potential problems
- Address how to resolve disputes or conflicts
- Is there a plan in place in the event you become unable to function as the business leader?
- Determine the value of the business by obtaining an appraisal
- What is your exit strategy?
- How will you transfer the business
- Is there a timeline in place for implementing the succession plan?
- Keep everyone involved in the communication loop
- Maintain all legal documents
- Wills and trusts
- Powers of attorney
- Tax returns, financial statements, and records for the past five years
- Contact information for all professional advisors
All of the above information might seem overwhelming, especially if you don’t understand the laws. It is recommended that you speak with business lawyers in Rockville, MD about the entire procedure. By consulting a business lawyer Rockville, MD business owners have been turning to for decades, you can feel peace of mind in knowing all of the details have been considered.
As some of the best business lawyers in Rockville, MD, we can assist you in developing a strong succession plan for your business that offers peace of mind to you knowing your business will continue to prosper after you pass the reins to other family members. Contact the Law Office Of Daniel J. Wright today to learn more.