If you own a small business, drafting a detailed succession plan is crucial, especially if you aren’t the sole owner or operator. If something unfortunate happened to you tomorrow, what would happen to the company you’ve worked so hard to build? Would it be divided up in probate court? Would it go to some board member you barely know? Would your children receive any part of it? If you don’t know what your company’s future looks like without you in it, it’s time to start small business succession planning today.
What Small Business Succession Planning Does For You
Small business succession planning helps set in stone who will own, operate and run your company once you pass on. Whether you want your business to go to your children, wife, business partner, or sibling, succession planning can help you do that. Essentially, it lets you guarantee the future success of your company by placing it in the hands of your most trusted friend or family member.
Business succession planning can also:
- Reduce tax exposure and risks, so your company isn’t vulnerable to exorbitant death taxes and probate costs. While these may not worry you now, they could put a huge financial strain on your spouse, children and family, and they can lower the amount of your estate your loved ones are able to receive.
- Prevent interfamily disputes. If you have multiple children, a succession plan is even more important. There’s a good chance two or more of them will be interested in running your business after your death. If there’s no established line of succession in place, this could cause a rift between family members.
- Provide for your future generations. Including your children in the succession plan can help you provide for them financially even after your death. They can use your successful business as a line of income for years after you pass, carrying on your legacy for their children, too.
Do you own a small business? If you don’t have a succession plan in place, this is the time to act. Contact Goldenberg Heller & Antognoli, P.C. today. We are experts in small business succession planning, and we can help you protect your company’s (and your family’s) future.
