Do you have a plan for the day when you decide to retire, or even pass away? Retirement may not be something you are even thinking about, so in that case you probably answered no. But, what if something happens to you? Do you really want your business to flounder and fail? I thought not. So, you can see that even if retirement isn’t even a blip on your radar, you still need to put a transition plan in place to make sure that your legacy continues long after you are gone.
Here are a few options for you to consider when it’s time to exit your business:
Close up shop
One exit strategy is just to close up shop. Lights out. Wait! It’s not that easy…no matter if your business is large or you are a one-man shop. You may still have loose ends to tie up. For example, you may have assets– physical or intellectual–to sell. There might be contractual relationships that you need to end properly. You may even have employees that you’d like to compensate for years of service. Even if you are choosing for the business to shut the doors when you are gone, you still need to plan for that. A business attorney here in Orange County can create a succession plan that properly deals with the “what ifs” and “loose ends” –allowing you to walk away clean when its time.
Keep it in the family
You may have dreams of your son or daughter taking over the family business. This will ensure that your legacy will live on. This exit strategy will also give you the ability to have some decision-making power after you are retired. But all of this needs to be documented and thought out in advance. Many next-gen family business owners face so many unexpected taxes and other financial obligations following the death of the original owner that the kids typically have no other choice but to sell the business to settle what’s owed. Fortunately, a qualified business attorney in Orange County can help you utilize asset protection and tax strategies to minimize this risk and ensure your business can continue operating in successive generations without financial burdens or struggle.
Sell it to employees or another business
Maybe you’d like to change the ownership of your business to your employees or allow another business to acquire it after you are gone. Whether you sell it to employees or anyone else, you need to put an exit plan in place to make sure things go smoothly. If you don’t have the proper plan in place, the transition can wreak havoc and cause damage to the business.
It is an inevitable fact that if you own a business, there will be a day that you (or your successors) will have to deal with a transition. This either happens at your passing or when you retire. So, you need a plan and you need to start working on this plan way before you need it. You could save yourself, or your family, a lot of unnecessary stress.
Make sure you work with an experienced business lawyer in Orange County when creating your exit strategy. We have years of experience helping business owners create succession plans that allow them to stop thinking about “what ifs” and focus on growing their business and legacy instead. Call us today for an appointment.