After you've spent a lifetime building up your business, you want to make sure it thrives and continues to be a successful company when you retire or pass away. For this reason, creating a succession plan is necessary. In order to have an effective succession plan, it is important to get started by preparing early on, even when starting a business, or as soon as possible.
According to a national survey, approximately 25 percent of seniors who are family business shareholders don’t have any succession plans. Unfortunately, it is a fact of life that you will want to retire or you will pass away, which is why it is imperative that all senior business owners prepare a succession plan immediately if one is not in place.
So, how can you establish an effective succession plan for your Texas business? First, your succession plan must be flexible. This is because there are many variables, like one’s health, that may cause you to modify your plan down the line. Second, you must put thought into who you would like to be your successor. This can be especially challenging for business owners who have multiple qualified children. Although it's difficult to decide who becomes boss when you step down, it's critical to make the right decision that will allow your business to survive in your absence. Finally, it is beneficial to you, your company, and your family to seek the professional advice of a business attorney about matters such as:
An attorney can make sure you are taking advantage of all the deductions and are complying with state and federal laws to ensure you and your family will have a financial advantage. Additionally, our Austin business attorney will help you prepare your succession plan and determine a fair market value for your company, whether you own a small family business or a mid to large established company.
For your Texas business succession planning needs, call the Posey Law Firm at 888-269-1962 or locally at 512-646-0828 to learn more about transitioning your business with a solid plan in place.