If you are the owner of a business in Florida, you know that there is no shortage to the number of decisions you must make to keep your company running. But, how much time and energy have you devoted to making decisions about how to leave your company? Business succession planning is an important thing that is all too easy to put off but that shouldn’t be.
As Entrepreneur explains, you may want to retire and expect your business to ultimately be the financial support you need in your retirement years. You may hope to leave your business as a legacy to your children or even your grandchildren. Another situation to consider is what might happen to your business should you die or become ill unexpectedly. Having a plan laid out that details how your business will keep running is essential.
Before you automatically assume your kids want a business, you should ask if they are interested and also ascertain their ability to properly run it. Perhaps a current employee might be a better bet. Even if you will transition the company to your family members, how you set this up may make a big difference in the tax liability they and the company might ultimately shoulder. Transition time is also important and you might want to plan to stay involved for a while to make for a smoother transition.
If you would like to learn more about how to make future plans for your business to ensure your financial stability, please visit the business succession planning page of our Florida business and corporate law website.