Owning a business is hard work. Whether you have started your business from scratch or purchased it, business ownership is a challenging and rewarding experience. When you put so much time, energy, and money into making sure you operate a successful business, it is important to make sure you put mechanisms in place to protect that business should you pass away. A recent article from Forbes reports that around 60 percent of small business owners across the country do not have a business succession plan in place. That means nearly three out of every five small business owners is vulnerable in the event of an unexpected death. However, there are some steps you can take to ensure the viability of your business and developing a comprehensive estate plan that includes a business succession plan working an experienced estate planning attorney can be helpful.
Basics of a Succession Plan
A business succession plan is a plan of action to transfer ownership and management responsibilities within a business. They are particularly important for small business owners that own their business outright as sudden events such as death or incapacitation can have a significant impact on your business.