Lawyers call it “succession planning.” This simply means what do you need to do to organize your business to transfer to the next generation, retire, or simply sell the business. Even though more businesses are becoming woman-owned, most of my business owner clients are men.
What happens if the business owner gets sick? Is there a plan in place to take over the business? Who will run the business?
Suppose the owner suddenly dies? The same issues apply.
What if the owner wants to retire? Many times the most significant asset is the business and without selling it, a satisfactory retirement is not possible. What are the taxes to be paid and how can we plan to minimize the take of the various State and Federal governments?
I know thinking about death, disability and illness, old-age, and retirement can be difficult. Nevertheless, it is so much better to start planning when everything is okay rather than in the midst of a crisis.