Many small business owners have a full plate just trying to keep the business profitable. Because of this, many small business owners do not think about what would happen to their business and clients in the event they become disabled, incapacitated, or deceased.
Even if you have prepared a family member or trusted associate to take over the business, are you sure they have the adequate authority to take over the operations? Even if someone takes over the operations, who will be the new owner of the business? Who will be liable for any transfer taxes that may result in your death?
Many times these issues can lead to headaches and legal disputes for your loved ones. Grieving for a loved one is hard enough; give your loved ones piece of mind by executing a business succession plan. The process can be as simple as discussing your goals and desires and creating a short agreement, or as difficult as an advanced tax strategy. Only a qualified attorney can decide which is correct for your situation.