The United States is among those few countries that are home to family-owned estates.
As a matter of fact, around 90% of businesses in the United States are either owned or controlled by families. That’s a whopping number.
And yet, many business owners lack a detailed succession plan that addresses the challenges that will arise when they retire early or exit the company due to sickness. Several studies report that the majority of small businesses do not have a succession plan, which is alarming.
Without a clear succession plan, business owners are putting their and their employees’ livelihoods at risk. That’s mainly because many children do not want to follow in the footsteps of their parents.
If that happens, you’ll have to surrender your business to a business partner or a family member you did not want to take over. Therefore, a solid succession plan that defines the role of your business in your estate and retirement plans is a necessity, especially if you run a small business.
But how do you create a successful succession plan with a lot on the plate? Well, hiring an experienced business succession attorney will take the burden off your shoulders.
In this guide, we’ll discuss how hiring a business attorney can be beneficial in drafting a succession plan for small businesses.
What is a Business Succession Plan?
A set of strategies devised to enable a seamless transfer of an organization from one group or individual to another is known as a business succession plan. Aside from the legal, this detailed and comprehensive business plan addressed the financial aspects of the pass-over of management and ownership.
Creating a business succession plan ensures that business transfer is efficient, orderly, and in the current and future owners’ best interests. Every business must have a succession plan because it lessens the possibility of conflicts among managers and owners during the transfer of ownership or management.
Advantages of Working With a Business Succession Attorney
In order to create a successful succession plan, it’s essential for every business owner to engage with a lawyer from the get-go. That’s mainly because they have helped multiple businesses create a succession plan. Hence, they can help you devise and execute a strategy that will guarantee your organization is well-positioned for the future.
That said, here’s how working with a business succession attorney will be beneficial in succession planning:
1. Attorneys Offer Comprehensive Legal Advice
Business owners do not have much legal knowledge, which is why working with an attorney is essential when creating a succession plan. Attorneys help business owners draft a solid succession plan by offering them comprehensive legal advice.
Because they’ve worked with different types of business owners, they will offer you advice regarding the issues that may arise in the future and how to handle them. As a result, you’ll be able to structure your succession plan in the best possible way.
2. Attorneys Will Advise You on Protecting Your Assets
When it comes to succession planning for small businesses, taking adequate measures to safeguard your assets from financial liabilities and creditors is important.
Several small business owners, educational institutions, charities, foundations, trusts, estates, and other organizations have found Thienel Law firm quite reliable when it comes to seeking advice on asset protection.
Steve, the founder of Thienel Law firm, helps clients devise a strong strategy that will safeguard their assets from all kinds of risks.
In addition, he offers his clients valuable advice on powers of attorney, wills, tax compliance, and other personal and business-related issues from his first-hand experience. Thienel Law has become a popular law firm in Virginia because Steve offers fixed and subscription-based pricing with no gatekeepers.
Best of all, you can consult Steve regarding asset protection or succession planning via a phone call or schedule a one-hour consultation at his office.
3. Attorneys Help Businesses Minimize Tax Liability
Because experienced business attorneys are well-versed in tax laws, they help organizations recognize prospective tax benefits they may be eligible for. Such lawyers help organizations reduce their taxable liabilities while complying with legal requirements.
4. Attorneys Avoid Conflict and Help Maintain Harmony Among Successors
Without a business succession attorney, avoiding conflict and maintaining harmony among successors is challenging. Because attorneys handle all the facets of the transition process, from planning to executing, they ensure that all parties understand their obligations and rights. Ultimately, this reduces the likelihood of conflicts among successors.
Draft a Business Succession Plan Without Delay
Drafting a business succession plan may appear difficult, but rest assured, it isn’t as complex as you think.
All you need to do is establish your goals, identify your successors, and write down your plan. Make sure you include business valuation, key personnel changes, succession details, insurance, tax implications, finances, and other relevant details.
In the meantime, seek advice from a business succession attorney because their knowledge and experience will help you draft a solid succession plan.
