A business succession plan allows business owners to decide who will eventually take ownership of their business if they retire, become unable to perform their job, or pass away. Our Virginia Beach estate planning team provides a guide to business succession planning below.
Why Have a Business Succession Plan?
Sudden death, illness, incapacity, and retirement are some of the biggest reasons that cause issues for future leadership within a business. In many instances, business partners and family members are left confused and scrambling to find the right person to take over the business. Business succession plans allow business owners to take away any confusion to provide a clear path forward.
These succession plans hold several important advantages for business owners that wish to safeguard their interests when the time comes to pass the torch. These plans are designed to account for every scenario that will impact business operations.
One of the main benefits of a business succession plan is they are not subject to the probate process or legal disputes of the terms. This allows you to set the terms of the succession to your exact specifications without the risk of lengthy legal proceedings when the time comes. Other benefits to business succession plans include:
- Reduces or even eliminates estate taxes
- Provides a safe transfer of business interest to partners
- Gives a strategy for the transfer of expenses, taxes, and other expenditures
- Determines which parties will operate the business
- Created to suit your unique needs
The nature of each succession plan differs between business’ specific circumstances. No matter how complicated it may be, our experienced team of attorneys is equipped to help you succeed.
To find out more about how a business succession plan can help you, reach us today using our online contact form or give us a call at (757) 500-5135 to schedule a consultation.