Is It Necessary to Hire a Business Succession Lawyer?
Under certain circumstances, it may be beneficial to consult a business succession lawyer, though not all companies may be in need of this specialized legal guidance. A business succession lawyer can provide invaluable insight in advance of your company needing to have a succession plan in place should a primary decision-maker become incapacitated or die. A business succession plan should be a carefully considered doctrine that is legally binding and considers all likely scenarios so that the company can continue after a difficult milestone. A skilled business succession planning lawyer, like a business succession planning lawyer in Sacramento, CA, will assist companies in developing a plan that reflects their goals, core competencies, and mission statement while minimizing tax obligations. Talk to a business succession lawyer to learn how he or she can help your company achieve this.
Working with a business succession lawyer may be of benefit to you, particularly if any of the following reflects your circumstances:
- You wish to put plans into place for the continuation of your company post your retirement.
- You have become disabled, or anticipate this as a possibility which because of its physical and/or mental nature may prevent you from conducting business as usual.
- You wish to put plans into place for the continuation of your company post your passing away.
The Advantages of Having a Business Succession Plan in Place
There are several popular reasons for why companies hire a business succession lawyer. A business lawyer works with clients to develop a robust succession strategy that meets their needs for forming such a plan. Your succession plan can transfer the ownership of your business to a business partner, a family member, a third party, or even to the business entity. Whether your company is a sole proprietorship, LLC, a corporation, limited partnership, or a partnership, a business lawyer can assist you in any of the following ways:
- Avoiding probate.
- Reduce or eliminate estate taxes with regard to the business and its assets. Arrange for your life insurance payout to cover the estate taxes should there be any assessed.
- Appoint a successor to take over your business under certain circumstances that you dictate.
- Determine the value of the business.
- Designate how you wish your heirs to be provided for financially, even if they will not have a connection to the business, while also transferring your interests in the business to other family members who will be involved with it.
- Bar the sale of one or more family member’s interest in the business to someone who is not a family member.
- Shift responsibilities in the business to others if a partner, CEO, or corporate officer passes away, leaves the company, or retires.
- Transfer the taxes and costs of the business, or provide for funding of them.
A business lawyer can structure your business, provide quality legal guidance for creating a robust succession plan, and help ensure that your professional goals are reached, even if an event or contingency triggers a transfer of ownership. Call one today to discuss how a business succession lawyer can assist you.
Thanks to Yee Law Group, PC for their insight into whether it is necessary to hire a business succession lawyer for your company.